Buying a car in Flamborough without a down payment or cosigner
Buying a car in Flamborough without a down payment or cosigner
Posted on August 2, 2022
If you are looking for a way to buy a car in Flamborough without a down payment or cosigner, these suggestions are going to make your life a lot easier.
Stick around until the end of this conversation, and you will be able to get an amazing deal on a car and start living life on your terms.
Canadian car financing in 2022
For the better part of two years, all people were talking about and focused on was Covid-19 and the threat it posed to the global economy.
Now that everyone is learning to live with the virus, we are taking stock of what happened on the economic front.
Massive amounts of money printing by central banks throughout the world have led to runaway inflation here in Canada.
As a result, the Bank of Canada is being forced to make bold moves when it comes to interest rate increases; on July 13th, 2022, the Bank of Canada increased the prime rate by 100 basis points, which is a significant increase in one shot.
This increase has made it more difficult for lenders to underwrite deals because higher interest rates make it harder for Canadians to service their existing debts and/or take on new obligations.
The good news is you can get a great car loan, but you must move fast before lenders start to price this latest interest increase into new loans.
To access car loans in Canada, you need a credit score over 620; anything below that number, and you are entering subprime territory where the interest rate can easily reach double digits.
Keeping a close eye on your credit score
Make it a regular practice to check your credit score at least monthly if not weekly.
Your credit score can change, and those changes can directly impact your ability to secure financing, rent an apartment or even get certain high-level jobs.
There are free apps like Credit Karma which give access to your TransUnion credit report, and this app typically updates your score once per week.
To keep your credit score in great shape, always make at least the minimum amount due by the payment due date and reduce the amount of debt you are carrying.
If you follow those two steps, your credit score should be in the highly coveted 700 range in now time.
Having a rock-solid source of income
Lenders are willing to give credit-challenged borrowers a second chance if the borrower has a substantial source of income and a legitimate reason for the weak credit score, perhaps the borrower suffered a job loss during the pandemic.
You should prepare an explanation of why your credit score is low; it will demonstrate you are taking responsibility for the issues of the past.
With a solid income and explanation for your credit challenges, the last thing you need is a local dealership that will go to bat for you when negotiating a car loan with prospective lenders.
The dealership is acutely aware of the prevailing market conditions and will get you the most competitive deal possible, but you must reach out to the dealership today.
Contact Unique Chrysler for help, advice and competitive Flamborough car finance and leasing.
Thanks for reading. Be sure to connect with us on Facebook, Twitter, Instagram, or LinkedIn to stay up to date on our latest great articles!