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How to buy a car in Smithville with an unstable income

How to buy a car in Smithville with an unstable income

The Canadian economy has gone through a massive shift from “traditional” 9-5 jobs and into a gig economy. If you are one of those Canadians that is working multiple jobs or have erratic income, it can be difficult to secure financing for big-ticket items like a new home or car.

It's something our Smithville auto loans team has experience in, so we asked them to share some of that experience with everyone.

Lenders have not adapted to the new normal

Most traditional lenders are slow to adapt to the new economic reality being faced by most Canadians, when was the last time you went to a bank in person (banks are usually open 930-5 Monday through Friday).

Who has time to visit a bank during those old school hours?

Fortunately, some new lenders are coming into the marketplace that understands Canadians may have non-traditional income profiles but they are creditworthy and willing to do business.

As more Canadians join this demographic, lenders who do not adapt will start to lose their market share.

How lenders underwrite auto loans in Smithville

The lender is looking for your ability and commitment to repay the car loan with interest. To determine your commitment, the lender will look at your past financial dealing, they simply look at your credit score, and based on that, they can determine whether you are responsible with your money.

After looking at your credit score, the lender is going to need to get a better understanding of your income. Since your income is not always predictable, they will need your income tax notice of assessments and banking statements.

By looking over these documents, the lender can get a clearer picture of your finances.

Getting professional help

Even if you do not have pristine credit, some lenders can help make your car-buying dream a reality. You will need to seek out local car dealerships that have experience working with buyers who had credit issues in the past.

The dealership will have existing relationships with a large network of lenders who specialize in providing auto loans to borrowers with credit issues.

Along with access to this network of lenders, these dealerships will also be able to give you a very detailed plan on how you can fix your credit issues. The starting point would be to first look over your credit report, you can get that by going to Credit Karma or Mogo.

The primary reason people have a low credit score is that they have missed a payment. Missing even one payment can wreak havoc on your credit score, so you should set up reminders on your calendar to make sure you never miss a payment going forward.

By making your payments on time going forward, your credit score will start to rise and give you the ability to get a very competitive auto loan interest rate.

Owning a car is a necessity in Canada, at least if you want to lead a normal life. You should contact your local dealership ASAP and book an appointment. You will feel better just knowing what options are available to you.

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

Categories: Car Loan

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