How to buy a car when living paycheck to paycheck in Burford

How to buy a car when living paycheck to paycheck in Burford

Posted on December 28, 2021

The economy is on the road to recovery but for most Canadians, we are just holding on by the skin of our teeth. If your current vehicle is no longer reliable and you need a new car, it can be difficult finding something if you are living paycheck to paycheck as our Burford auto loans team explains.

Just about everyone is in the same situation

You may feel like somehow you are a failure because you are having a tough financial time, but the reality is most Canadians are just like you.

Your payroll hits your bank account and it goes out just as fast.

Your current car is not reliable and taking it to the shop for repairs is a nightmare. Buying a new car would solve all of your problems but you currently owe money on the car you have plus a number of other debts.

Light at the end of the tunnel

The good news is you can still buy a new car even if you are in debt and owe money on your current car.

One of the upsides of the pandemic (There are not many) is the demand for used cars is high, so you should be able to get a considerable amount of money for your car even if it is not reliable.

The biggest potential obstacle is your credit score but there are ways around that as well.

You should take a peek at your credit score for free by using CreditKarma and find out where you stand, if your score is over 680 then you are in excellent shape but don’t get discouraged even if your score is under 680.

If your credit score is over 680, then you qualify for the most competitive Burford auto loan interest rates in Canada. Interest rates are going to rise soon but let’s focus on the “here and now”.

Creating a budget

If you do not have a budget, you should create one and list all of your debts. You can get a list of your debts from your CreditKarma account.

Now take a look at your total income and see where there are ways to trim your expenses. You need to make room in your budget to help allow for the purchase of a newer car.

Do you know what your current vehicle is worth? There is no online resource that will give you a reliable quote. Your best bet is to go to your local dealership and find out what your car is worth. The dealership can also let you know whether they can help you get a new loan at a lower interest rate.

What many Canadians like you are doing is bundling their existing car loan with a new one at a lower interest rate. This means your car loan is actually more than what the car is worth but you get a newer, more reliable car out of the deal.

If you continue to wait, interest rates are going to rise making everything more expensive and who knows how long before your car breaks down again. Go to the dealership today and find out what options are available, even if you have credit problems the dealership is able to help advise you.

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