New Car Loan after Divorce: Our Guide to Finding a Good Deal
New Car Loan after Divorce: Our Guide to Finding a Good Deal
Posted on May 19, 2022
There are many milestones we look forward to in life, graduating from school, getting our first job, getting married, and buying a car. But most of us never envision having to go through a divorce or having to find a new car loan after divorce
Our Ohsweken car loans team explains your options.
Finances are turned upside down
One of the biggest challenges that you will face is having to start from scratch financially.
Depending on the terms of your divorce settlement, you may have to repay a portion or all of the debts that you and your spouse incurred during the marriage.
This added expense, coupled with child support and getting a new place to live, is a tall order for people, but it can be overcome.
Getting back to basics
The first thing you need to do is get back to basics and start by accessing your free credit score.
You can use services like Credit Karma which gives you access to your TransUnion credit report and current score.
Now that you know what your current credit score is, you can begin working from there.
A credit score over 680 is considered prime, so you will have no issues getting a new car loan after divorce at prime interest rates.
One of the most common things to happen before a couple files for divorce is they rack up a mountain of credit card debt that goes unpaid; your credit score could be on the low side in the 600 range or lower.
If your credit score is on the low side, you can begin working on rebuilding it by paying down your debts and making sure there are no accounts past due.
By sticking with that approach, your credit scores will start to climb.
Finding your financial line of equilibrium
During your marriage, both you and your spouse had dreams and shared the economic challenges that came with those dreams.
Now that you are on your own, it is time to rejig your budget to accommodate for important things like the purchase of a new car.
The majority of lenders will not approve a loan if your debt-to-income ratio (DTI) exceeds 35%; this is pretty much industry standard, so you need to bear that in mind when you are shopping for a new car.
Finding lenders who are willing to work with you
One of the biggest challenges you are going to face when trying to buy a new car post-divorce is lenders willing to take their time to understand your needs; most of these lenders use a “one size fits all” mindset.
Instead of having to jump through the hoops of these rigid lenders, you should go to a local car dealership.
The dealership has helped a large number of people who went through bankruptcy just like you, and they can help get you approved too.
What you need to do is contact the dealership in your community today and start reviewing your situation. You are going to feel great knowing there is someone in your corner that is going to help you get a car that matches your needs and budget.
We’d love to help you find a new car loan after divorce. 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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