Finding a Flamborough Car Loan with Bad Credit Score in 2022

Finding a Flamborough Car Loan with Bad Credit Score in 2022

Posted on March 15, 2022

If you have credit challenges and need a new car, you will need to pay close attention to these suggestions from our Flamborough car loans team.

The car market in Canada is experiencing some very unique challenges, namely a shortage of cars.

This shortage is expected to last another year, if not longer, so you have to adapt to this new normal.

One of the side effects of the car shortage is an increase in the average asking price for these vehicles. With car prices rising along with, your budget is going to be stretched to its limit.

Something that you should do is revise your budget if you have not done it in quite some time.

We touched on inflation; with food prices soaring along with energy, finding the cash in your budget for a new car will be a challenge.

The average car payment in Flamborough is well over $500, so you need to find enough room to cover that plus the running costs that come with owning a vehicle.

Financing your new car purchase

New cars are expensive, with the average price of $50,000, not factoring in features and financing. You are talking about serious amounts of cash.

In addition, the lenders that offer Flamborough car loans are in a tough situation; interest rates are at historic lows, which means the lenders have to issue more loans to generate enough profit to keep the lights on.

While the lenders need to issue more loans, they are apprehensive about issuing bad loans, so they have raised the minimum credit scores needed to access these loans.

For example, prior to the onset of the Covid-19 pandemic, you would need a credit score of 650 to get a car loan, but now the minimum credit score needed for a prime rate car loan in Flamborough is 720.

If you are not sure whether you qualify, you can download free apps like Credit Karma and Koho, which will provide you with direct access to your credit report.

Something you should keep in mind is that each credit reporting agency utilizes a different scoring model, so your TransUnion score may be higher than your Equifax score.

How to access the best cars at competitive prices

With the tight credit market and limited inventory of cars to choose from, you will need to get professional help. Your best option is to work with a neighborhood car dealership for a variety of compelling reasons.

The dealership already has cars in their inventory that you can go through and test drive. You will also be able to access the most competitive vehicle financing based on your specific situation.

This is something that is unique with dealerships; you will never be able to get a better deal than what a dealership is able to secure.

These dealerships are able to help you, even when you have bad credit, and can show you the steps that must be taken to rebuild your credit.

Now that you have all of the essential details, you should contact your local dealership today and begin your search while there are still vehicles available to buy.

We’d love to help you find a great priced Flamborough car loan with bad credit. 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. 

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!