How to finance a new EV after going through a nasty divorce

How to finance a new EV after going through a nasty divorce

Posted on September 16, 2022

If you are newly divorced and in need of a new EV, obtaining finance will be more difficult than when you were married.

Our objective is to show you the necessary steps to obtain an EV car loan and a new lease (pun intended) on life, but you must stay until the finish of the talk.

The negative effects on your credit rating

Financial difficulties are one of the major causes of divorce in Canada; if your finances were poor before the divorce, you may be on the verge of bankruptcy by the time the divorce is finalized. Therefore, the first step is to examine your TransUnion and Equifax credit reports to determine your standing.

If your credit score is below 620, you will not qualify for the majority of auto finance or credit products; those you do qualify for will carry a very high interest rate.

However, you can still get auto loans, and we will explain how in a moment.

Resolving your credit problems

Once you have access to your credit report, search for accounts that are delinquent or will soon become delinquent.

You must immediately begin making payments on these accounts to bring them current.

If money is tight, as it is for the majority of Canadians, you may need to revisit your budget or take on a second job to increase your income.

The sooner you begin paying off these loans, the quicker your credit score will recover.

How stable and considerable is your income?

Typically, after a divorce, the principal income earner is obligated to pay maintenance to the former spouse, in addition to whatever child support the court may decide.

This can consume a substantial portion of your salary, especially if you need to relocate.

These court orders are tough to modify or get revoked, so you must roll up your sleeves and begin working other jobs in order to generate enough money to pay the rent.

In order to qualify for an auto loan, your debts must exceed forty percent of your gross income, so keep this in mind when creating your budget.

Where to obtain an EV vehicle loan during a divorce

The internet is the last place you should go for an EV car loan; the bargains available online are designed for borrowers with excellent credit, and even then, these websites are not a suitable alternative.

You should contact a car dealership in your area that deals with customers with credit problems; they are easy to find.

Once you have identified the dealership, proceed there to discuss the various loan choices.

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 putting you behind the wheel of a brand-new vehicle.

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