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How to get a car loan in Ohsweken when you are barely getting by

How to get a car loan in Ohsweken when you are barely getting by

In Canada, you need a car to lead a normal life. During the pandemic, most of us have become accustomed to working from home. The work from home paradigm was better than nothing but with office re-opening you will need a reliable to get back to work.

That’s what our Ohsweken auto loans team are going to tackle today. How to help those barely getting by to afford a car to get them to work.

Car prices are on the rise

The average price of a new car in Canada has shot up since the onset of the pandemic. Now you can expect to easily pay over $40,000 for a new car and that price is going to keep going up due to the chip shortage that everyone is talking about online.

In the past you could buy a used car for a reasonable price but those days are long gone, used cars are now selling at all-time highs.

How to get a car loan when you aren’t making much money

If you have decent credit, you can get a car loan in Ohsweken and it is surprisingly easy provided you have the right strategy.

It helps to check your credit score to see whether you fall under the prime or subprime category.

The prime category is any person that has a score over 680. CreditKarma will let you access your TransUnion credit score but you should also check out your free Equifax credit score.

Car loan providers are flush with cash and need to write a considerable number of loans in order to hit their sales targets.

When interest rates are high, lenders only need to issue a few loans to achieve their profitability targets, but with interest rates the lowest they’ve been in a generation, lenders are under a tremendous amount of pressure.

You are able to get a car loan in Ohsweken, even with a credit score under 680. But, you will not be able to find the lenders offering those loans online.

Having a stable income is key to getting a new car loan

Your credit score is important but lenders are concerned about the overall health of the economy. These lenders do not want to issue a loan to someone who doesn’t have a stable source of income.

If you have been at your job for a few years and it is in an industry that is resistant to the pandemic like healthcare, then lenders will overlook most credit issues provided you are not in a consumer proposal or bankruptcy.

Most Canadians are living paycheck to paycheck

The majority of Canadians are carrying a considerable amount of debt and can find it hard to save money for a new car. Lenders are aware of this and will usually stretch out the monthly payments on your car loan to a 84 months or in some cases 96 months.

The more time you have to repay the loan, the lower the monthly payments which is great news for your wallet. To get these bad credit car loans in Ohsweken, you have to go through a local dealership.

They work with these lenders all the time and can help you get a loan. The dealership is also able to give you suggestions on how you can fix your credit.

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

Categories: Car Loan

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