Getting a Car Loan after a Consumer Proposal in Niagara Falls
Getting a Car Loan after a Consumer Proposal in Niagara Falls
Posted on January 10, 2022
A consumer proposal can help you get back on your feet financially, but there are long term consequences associated with these proposals. Namely the impact it has on your credit score, as our Niagara Falls auto loans team explains.
When you enter a consumer proposal, you are essentially asking your creditors to forgive a portion of the debt you owe and extend the repayment timeline. This is better than filing for bankruptcy but your credit score will take a major hit for quite some time to come.
A common challenge that most Canadians, face after completing their consumer proposal is how to buy a new car when your credit score is low due to the consumer proposal.
Getting your finances in order
If you just completed your consumer proposal, your unsecured debts should have been paid in full. Since you do not have a significant amount of debt easting into your monthly income, you should have significant room in your budget.
One of the things that lenders pay close attention to is your income. If you have great income but do not earn a substantial income, your car buying options would be very limited.
So even though you had credit challenges, your income will give you an advantage.
Reviewing your credit report
Since filing your consumer proposal, you probably never bothered to look at your credit report. Going forward, make it a habit to check your credit score often.
Types of car loan providers in Niagara Falls
There are many different types of car loan providers throughout Canada. You should steer clear of the major banks as they won’t offer loans to individuals who were recently went bankrupt or completed a consumer proposal.
The lenders you need to look find are those that provide customized financing.
These lenders really put in the work to understand your financial situation and based on that, come up with a payment plan that works for your budget.
Since you have lots of room in your budget that can be put towards paying for your car loan, you will be able to afford a better quality car.
Car prices have been skyrocketing since the pandemic started, so you need all the credit you can get, if you want to buy a good car.
How to find these lenders
You cannot find lenders online that will give you a post-consumer proposal car loan. The only proven way you can access these lenders is by enlisting the help of a local car dealership. These local dealerships know which lenders can help you.
A benefit of working with a local dealership is they can get your loan approved, even when other lenders have said no and they have cars available for you to buy today. These local dealerships are your best option when trying to rebuild your credit and still get a great car.
Now that you know how to get a car loan after a consumer proposal, contact your local car dealership and book a test drive, you work hard for your money and it is time you start enjoying the benefits of that hard work.
Contact Unique Chrysler for help, advice and competitive Niagara Falls car finance and leasing.
For any questions, concerns, or inquiries. Please don’t hesitate to contact us here!
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