How to Buy a Car in Ohsweken with Bad Credit

How to Buy a Car in Ohsweken with Bad Credit

Posted on October 4, 2021

The pandemic has taken a dramatic toll on the economy, forcing some people to fall into financial hardship. If you need a new car and have bad credit, our suggestions will help give you a fighting chance.

We asked our auto loans to team explain how to buy a car in Ohsweken with bad credit and some things to watch out for.

Needs vs wants

Do you want a car or do you need one? If you live in a city within Canada then you may be able to get by with public transit.

However, most people live in rural parts where you need a car to survive. If you do need a car, you have to balance your wants with your budget and credit profile.

Credit health check

Even if you have less than ideal credit, the good news is you can take a few simple steps to help get back in the good category.

• Bankruptcy/Consumer proposals are serious situations that will not go away overnight. If you have not been discharged from bankruptcy then legally you are not allowed to take on any new debt. A consumer proposal is not as drastic as bankruptcy but most lenders will not offer a car loan if you have a consumer proposal.
• Late/Missed payments, this can happen to anyone but if you have numerous missed or late payments on your credit report, it will take some time to recover. You should be prepared to explain to the prospective lender why you missed the payments. If you had a great track record but unforeseen circumstances like the pandemic impacted your income may be accepted by some lenders.

You should be direct with the prospective lenders and explain why you have credit challenges. They may reject your application, but most will consider it since you were honest enough to be upfront.

Some lenders specialize exclusively with consumers that have bad credit, so don’t feel embarrassed, you would be shocked at the sheer number of Canadians that are going through similar financial challenges!

Hard to prove income

There are auto loan providers in Ohsweken who do not focus on credit but instead look for borrowers who have some cash to put down. These hard money lenders will finance an auto loan provided you can put a substantial down payment.

This down payment will protect the lender should you not be able to repay the loan.

Even self-employed consumers who have good credit can also have a difficult time securing auto financing.  Self-employed applicants must show their income tax notice of assessments for the last couple of years.

If you have been in business for less than two years, then be prepared to provide your bank account statements. These bank statements can make or break your auto loan, so be sure to bring in as many statements as possible.

Getting a cosigner

One of the simplest ways to buy a car in Ohsweken with bad credit is to ask for a cosigner. If the cosigner has good credit, then you may be able to get the loan approved at very competitive terms.

You will need to choose wisely since the cosigner is responsible should you default on the auto loan so you should ask someone you trust. There will be some people who turn down your request to be a cosigner, do not take it personally, they could be facing financial challenges and be unable to help.

Contact Unique Chrysler for help, advice and competitive Ohsweken car finance and leasing.

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