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Buying an Electric Car with Bad Credit: 3 Tips You'll Want to Hear

Buying an Electric Car with Bad Credit: 3 Tips You'll Want to Hear

Canadians buying an electric car with bad credit have options, but they will need to implement our suggestions if they want to make the most of this opportunity.


The majority of lenders will not issue an electric car loan to borrowers without a co-signer or massive down payment.


If you stick with us to the end, you will be able to get an electric car based solely on your own merit.


Assessing your current credit score


Do you know what your current credit score is? This is something that you should keep a watchful eye on at all times.


There is no cost to keep tabs on your credit score; both Equifax and TransUnion offer free credit monitoring services, and you should sign up for both.


When you have access to your credit score and reports, list all of your accounts. If you notice any mistakes inside your credit report, no matter how small they may seem, you must dispute them.


Errors inside your credit report can do significant damage to your score. These errors are not going to correct themselves, so you must take decisive action and deal with them.


If you have accounts in your credit report that have negative comments, you need to work on bringing them current; this includes accounts that have already gone to collections.


You could try to negotiate a settlement with the creditor, so you pay back less than what you actually owe, but that could come back to haunt you in the future, so pay the creditors what they are owed in full.


Once those accounts are brought up to date, your credit score is going to start increasing, at first a few points here and there, but eventually it will go into the high 600s or low 700s.


Can you afford a new electric car?


Since your credit is bad, a lender might wonder if you are earning enough money to service all of your debts plus the new car payment.


To allay those fears, lenders will need to review your latest salary slip and income tax assessment; so long as your current obligations plus new car payment do not exceed forty percent of your income, you will be fine.


Where to go for your electric car loan with terrible credit


This step is the most important; while waiting for your credit score to improve, you need a car right away.


The only way you can get an electric car loan is with the help of a car dealership in your area.


The dealership has experts on site who know EVs inside and out and will also know which lenders specialize in providing bad credit car loans.


The dealership will also show you a way to increase your credit score, so you are never forced to deal with this type of hassle again.


You can also test drive electric cars at the dealership until you find the one you like the most.


If you stick with these steps, you will have no problem finding a car, but you need to take the first step and reach out to the dealership.


If you're buying an electric car with bad credit, we'd love to help. Simply fill in the form below and we’ll get back to you ASAP or see our selection of new and used cars at our Burlington dealership. 


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    Categories: EV motoring