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How Canadians with credit issues can buy a car without breaking the bank

How Canadians with credit issues can buy a car without breaking the bank

With rising car prices, if you want to buy a car without going beyond your budget, there are some things you will need to bear in mind.

Our Waterford auto loans team explains some of the car buying options for those with credit issues. There’s always a way to get what you want!

Very tight new and used car market

One of the reasons that car prices are high is due to a very tight supply of new and used cars to choose from. The big car manufacturers experienced a massive production slowdown during the pandemic.

Now that consumers are back in the market for new cars, all of the pent-up demand from the pandemic is driving up prices and reducing inventories across the globe.

It could take one to two years before this supply chain bottleneck goes away, so you should be ready to move quickly once you have found a car that is within your budget.

Determining your car-buying budget

Whether you are buying a new or used car, the prices are going to be high so you will need to get auto financing. If you are tempted to apply online for a Waterford car loan, resist that temptation.

The websites that are advertising these loans are not able to give you access to the best possible terms.

The only way to effectively determine what you can afford is to first calculate how much of a car loan you qualify for and that requires expert advice.

Your local car dealership is the best choice when it comes to getting a competitive interest rate auto loan in Waterford. The websites online can only access retail lending rates but the dealerships have access to wholesale interest rates.

The dealership also has longstanding relationships with these lenders, so they can help negotiate better terms or ask for leniency if you have credit issues.

Credit and your car buying dreams

While working with a local dealership, your credit score will make or break your car buying dream. If your score is below 520, it will be virtually impossible to get a car loan without a cosigner.

You should aim to have a credit score over 680 but don’t worry, even if your score is 620 there are options available provided you are working with a local dealership.

If your credit score is not strong, the dealership will have their experts review your credit report and let you know what you can do to raise your score.

The steps to raising your credit score are simple, just make it a priority to pay your bills on time going forward and you will see your score start to climb.

What most people do is they take a bad credit car loan and make payments for 1 year, over that year their credit score will improve.

Once the score reaches the necessary level they can refinance their car loan to a more competitive interest rate. These are steps that you and your local car dealership can discuss in detail.

By keeping your interest rates low and working with a local dealership, you can save money on your car loan and still get a great car.

When you’re ready for a car lease or loan, get in touch with the Waterford auto loan experts at Northway Ford for great deals on auto finance.

Categories: Car Loan

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