Your vehicle projects who you really are; the way its headlights glare on the dark roads, the way its tires zoom on the pavement and the way its engine purrs. All of this has a story to tell. Your car will be one of the biggest investments in your life, perhaps outdone only by your home. If you like a particular vehicle and want to buy it, but it happens to be outside your anticipated budget range, you can follow your dream by utilizing the right type of car loan. Fill out the form below to begin your application for a car loan in Canada.
- Your credit score
- Your available down payment
- The condition of the car
- The loan’s term length
- Your loan-to-income ratio
Different Types of Car Loans in Canada
Lenders provide multiple financing options that borrowers can choose from in order to access loans which meet their individual financial requirements. Many of these vehicle loans have the added advantage of being customer-friendly; the rates might be fixed, but you get to choose from a number of choices. Car loan rates in Canada are calculated differently, according to what services and features you need. Also, you can opt for a fixed interest rate if you are sure rates are going up, or a variable interest rate if you think you may be able to take advantage of lower interest rates in the near future. Also, the terms of car loans are not all the same. Do you want to pay by the week or by the month? Do you want to have the option to pay the entire amount at any time in the future if you get the money? The choice is all yours.
Varying Loan Package Options
Car loan rates in Canada are quite affordable right now, but may be rising in the future. Interest rates now are low, with most loans remaining under ten percent. Many car loan rates are running between six and eight percent. This isn’t the only upside. Lenders that are in the business of providing car loans in Canada may also formulate a payment plan extending over many years. For instance, you may come across a convenient plan that spans over as long as eight years, allowing you to pay off the total amount by the time the ninety-sixth month draws to a close. In other words, you do not have to complete unnecessary brain storming and creative financing to find a loan that fits your needs – the calculations will all be done for you.
It is important to carry out an adequate web research in order to determine the most affordable car loan rates in Canada. The internet contains many data and comparison tools for these loans and it is possible to find one which is perfect for you with only a click of the mouse. There are many different lenders out there, so it is crucial that you compare each of the different offers carefully.
Finding a bad credit car loan can be difficult depending upon the method you choose: secured or unsecured. Secured bad credit car loans are much easier to look for than bad credit unsecured car loans for a number of reasons:
Secured Bad Credit Car Loan:
- Lower interest rate
- Lower down payment required
- Loan amount depend upon the collateral
- More flexible options (i.e. fraud protection, etc.)
- Easier to find
Unsecured Bad Credit Car Loan:
- Higher interest rate
- Higher down payment
- Lower risk for the borrower
- Hard to find
Auto financing can be bit of a headache for anyone with poor credit. Like with all other forms of financing, poor credit can shut many doors in your search to access credit from traditional financiers. With a poor score, lenders will generally view you as an unsafe consumer who is likely to default on your payment obligations based on your past record.
Your score and credit history are readily available to lenders and are provided by a number of different credit rating bureaus in Canada, with TransUnion and Equifax being the two largest.
All is not lost if you have a low credit rating, however, as there is a niche of lenders who specialize in providing bad credit car loans in Canada for consumers with poor credit. The doors may not be totally shut for people who have been struggling with their finances and would like to access good quality and affordable auto financing options. This sounds good in theory, but what do bad credit car loans in Canada really entail?
What Exactly Are Bad Credit Car Loans?
It is important to take comfort in the fact this is a boutique auto financing option that is designed just for consumers in your position, so you should not shy away from approaching these niche lenders with your financial requests. Even with a very poor credit rating, you can be guaranteed instant approval for your car loans at some of the most affordable interest rates in the marketplace.
The rates might be slightly higher than the prevailing market rates provided by traditional lenders due to the risk involved but with adequate market research you will find bad credit car loans in Canada that are very affordable. Many of the bad credit car loan providers have strong associations with multiple automotive dealerships in the different provinces and can easily assist you in finding the car that you want which fits your individual budget. There are also other benefits of contacting these lenders, including the fact that it is also possible to find rebates and great discount offers by purchasing your car using these financing channels.
Securing Bad Credit Car loans in Canada
It is important to carry out adequate online research to secure the best bad credit car loans in Canada from providers before you schedule a meeting with a traditional lender to discuss your situation. With the fast growth of the internet in the last few years, this is a process that you can easily accomplish online. Many providers offer a very user-friendly application interface which you can take advantage of to have your loan requests processed in real time. Most of the more reputable providers of the bad credit loans in Canada will be interested in not just getting you a suitable vehicle loan, but also offering you tips and advice which can help you repair your poor credit score. This benefits the lender, because it helps make you more financially responsible and likely to repay your loan.
Purchasing a car with bad credit car loans in Canada may just be the opportunity that you need in order to secure a more solid financial footing. Providers can, for example, assist you in this process by contacting the credit rating agencies each time you make timely monthly payments. This can significantly boost your credit score over time. Get your dream car while repairing your credit score by using bad credit car loans in Canada.