What are you supposed to do if you made bad choices in the past? It’s pretty hard to make a large purchase, like a new or used car, when your credit score is low or straddling the “risky” line.
If you want to buy a new vehicle and have bad credit, it will be a long and hard process to get any type of auto loan financing. Canadian car dealerships will more than likely show you the door instead of the inventory. You may, however, be taken to the “budget lot” where the cars the dealer may be willing to take a risk and set you up with one of the “budget cars”.
Auto loans for bad credit are possible. The easiest way to get a quick approval is to have a pre-qualified co-signer. The co-signer allows you to purchase the vehicle using their name as a back-up form of repayment if you don’t make the payment on time. By using a co-signer you’ll have the chance to restore your credit score by making payments on time. If you can’t get a co-signer, you may have to find a credit repair agency that will help build your credit and get you on a monthly budget. This process does takes quite a bit of time. You can lose your good credit score instantly but rebuilding a bad credit score is a long process and may become stressful.
Here’s the good news
We can lead you to a local Canadian auto dealer, maybe a Toronto used car dealer or a Vancouver car dealership, that provides auto loans for bad credit. Our Canadian car dealer network understands and sympathizes with your situation and can get an auto loan for almost anyone.
There are two basic types of auto loans for bad credit; non-secured and secured. If you have nothing to be held as collateral then you would have a non-secured loan. The interest’s rates will go through the ceiling. If you do have collateral for the loan then the interest will be lower. If you default on either type of loan there will be heavy consequences and even more damage to your credit history.
Tags: auto loan, bad credit, bad credit auto loan, canada, credit rating, toronto bad credit auto loans
This entry was posted on Thursday, September 2nd, 2010 at 4:29 pm and is filed under Auto Loans. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.