How to buy a car after going through a divorce in Stoney Creek
How to buy a car after going through a divorce in Stoney Creek
Posted on July 18, 2022
If you were recently divorced and find yourself in need of a new car, being able to secure financing is not as simple as it was when you were married.
Our goal is to show you the steps that must be taken, so you can secure a car loan and get a new lease (pun intended) on life, but you need to stick around until the end of the conversation.
The adverse effects on your credit
Financial strife is one of the leading causes of divorce in Canada; if your finances were in bad shape before the divorce, you could be on the brink of bankruptcy by the time the divorce is settled.
So, the first item of business is to access your TransUnion and Equifax credit report to find out where you stand.
If your credit score is under 620, you will not qualify for most car financing or credit products.
Those you do qualify for will carry a very high-interest rate, there is a caveat we would like to add, which is you can still access car loans, and we will show you how in a few minutes.
Addressing your credit issues
After you have access to your credit report, look for accounts that are either delinquent or will be delinquent soon.
You need to start making payments on these accounts ASAP to bring them up to date.
If money is tight, which it is for most Canadians, you may have to go through your budget again or take on another job to boost your income.
The sooner you can start paying down these debts, the faster your credit score is going to rebound.
How substantial and stable is your income?
Usually, after a divorce, the primary income earner will need to pay maintenance to their former partner plus any child support that the court may order.
This can take a massive chunk out of your income, especially if you need to find a new place to live.
These court orders are difficult to change or have dismissed, so you need to roll up your sleeves and start working additional jobs to earn enough to keep a roof over your head.
To qualify for a car loan, your debts cannot exceed forty percent of your gross pay, so keep that in mind when you are working on your budget.
Where to get a car loan after going through a divorce
The Internet is the last place you should look for a car loan; the deals that are being offered online are intended for borrowers with perfect credit, and even then, those websites aren’t a good option.
What you should do is reach out to a car dealership in your area, one that works with borrowers who have credit issues; they are easy to find. Once you have identified the dealership, head over and start discussing what loan options are available.
You are beginning a new chapter in your life, but you don’t have to face it alone; the dealership will help you get back on your feet by first getting you behind the wheel of a new car.
Contact Unique Chrysler for help, advice and competitive Stoney Creek car finance and leasing.