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Subprime EV car loans what you need to know

Subprime EV car loans what you need to know

Are you interested in learning more about subprime EV car loans? Perhaps you were recently turned down for a car loan and want to know why and, more importantly, how you can get behind the wheel of a new electric car.

Our goal is to help Canadian consumers better understand the subprime car loan market and how to make better informed car-buying decisions.

Subprime (no universal criteria)

Something that you should be aware of right from the get-go is there is no standardized definition of what a subprime car loan is.

Each individual lender sets its own respective loan underwriting protocols where one lender would classify someone as a prime borrower while another could classify it as subprime.

With that in mind, there are a few things you should be aware of when it comes to car financing.

If your credit score is under 600, or if your income is hard to verify, then you could be considered subprime.

This does not mean you are a bad person; it just indicates that you have not established a positive track record when it comes to repaying your personal financial obligations.

You should consider signing up for free credit monitoring facilities like Credit Karma; these apps give you access to your TransUnion credit report and score in real time and for free.

Once you are able to access your credit report, it will become easier for you to establish a baseline, so you can work on building your credit score.

Importance of rebuilding your credit score

Your credit score is not set in stone; it changes monthly based on your financial dealing over the preceding 30 days. If you made your payments on time as agreed, then that will help raise your credit score.

Along with making your payments on time, focus on bringing down the total amount of debt you are carrying. The Bank of Canada is raising interest rates, which makes borrowing more expensive, even if you have perfect credit.

Stretching every dollar in your budget

This is a great time to review your budget and start crunching some numbers to determine where you can find savings. Perhaps cutting subscription services, you are not using since the pandemic came to an end will help put more cash in your pocket.

If you have trimmed your budget by as much as possible and still don’t have much room, you should think about taking on a second job; this will help augment your income and also give you the ability to learn new skills.

Where to find the best subprime EV car loans in Canada

You have probably been shopping around online for EV car loans; that is probably how you stumbled upon this article.

While doing research online is highly recommended, you should heed our advice and work with a dealership in your area.

A local dealership will take its time to better understand your situation and identify the lender that is best suited for you. These dealerships know all of the lenders in the Canadian auto finance industry and who has the best terms.

These dealerships will go above and beyond to help ensure you get a good deal on a new car, but they need you to make the first step and contact them.

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Categories: EV motoring