Bad credit EV-buying strategies that work in Ontario

Bad credit EV-buying strategies that work in Ontario

Posted on May 27, 2022

Anyone in Ontario that has bad credit and needs to buy a car should follow these suggestions.

The car market in Canada has changed dramatically since the onset of Covid-19. Fortunately, things are starting to go back to pre-pandemic normal, but there are some lingering effects, namely inflation.

During the pandemic, the Bank of Canada was forced to print money to keep the economy going, and programs like CERB helped Canadians keep food on the table while we battled this virus.

All of the month printing is the root cause of inflation and why car prices and prices for everything else have increased.

How to deal with rising interest rates

With most restrictions no longer in place, the economy is ready to boom, but the Bank of Canada now has to turn off the flow of cheap money by increasing interest rates.

If the Bank is not aggressive enough, then we will have hyperinflation like what we have seen in Argentina, but if the interest rate increases are overly aggressive, then it could lead to a recession.

The reason we need to discuss these rising interest rates is since you have bad credit, it makes it more difficult to secure financing for the purchase of a new vehicle.

Notice we said it would be difficult but not impossible, provided you follow these recommendations.

Credit rebuilding 101

You need to take control of your finances by signing up with a credit monitoring service like Credit Karma; with this app, you will be able to find out what is the primary cause of your bad credit.

There could be errors inside your credit report that are causing the bad credit, but you will never know until you look. If you are the type of person who feels they are too busy and this problem will just go away, negative items stay on your credit report for seven years!

When you have identified what is causing your credit issues, the next step is allocating every dollar you can spare to bring those accounts up to date.

There are no gimmicks or shortcuts when it comes to rebuilding your credit; paying your debts on time, all the time is the secret to success.

Where to get a EV car loan in Ontario while waiting for your credit score to improve

You are working on rebuilding your credit score but still need a vehicle today, there are options available that do not require a cosigner or a massive down payment, but you will need to be proactive.

Contact your local car dealership today and explain your situation; the dealership will analyze your financial situation and then determine which lender in their extensive network will provide you with the most competitive car loan.

The dealership will also give you actionable advice on what steps you can take to improve your credit score.

The primary takeaway from this conversation is you can get a car loan with bad credit in Ontario, but you need to work with a local car dealership that has expertise in helping borrowers get the second chance financing they need.

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