Guide to Buying a Used Car with Bad Credit in Copetown
Guide to Buying a Used Car with Bad Credit in Copetown
Posted on April 5, 2022
If you need to buy a new car in Copetown and have weak credit, you have to follow these suggestions to come out with a newer vehicle. By the time you reach the end of this discussion, you will be in a position of complete confidence.
Having the right expectations
The average price of a new car in Canada is well over $40,000, so the odds of you being able to afford a new car with weak credit are very slim.
So instead of focusing on a brand-new car, you should consider buying a reliable, previously owned model.
In the past, used cars were unreliable, but those days are long gone.
You should do some research to identify the vehicle that has the best fuel economy. With the conflict happening in Europe, there is a shortage of crude oil caused by economic sanctions placed on Russia.
The lack of oil means that prices are rising, inflation was trending at 5% monthly, and now that gas prices are exceeding $2 per litre, we are going to see inflation approach run away territory if solutions are not found and found quickly.
Credit markets are in flux
The global credit market is going through flux; the central banks pumped money into the economy throughout the pandemic with the hopes of keeping the economy afloat.
However, with too much money chasing a limited amount of goods and services, prices will rise, central banks are raising their prime interest rates to slow down the supply of money.
The side effect of raising interest rates is that the average borrower will need to pay more just to access loans; even if you have a high credit score, the days of cheap money are over.
So as credit markets tighten, you need to take a look at your credit score to make sure you are getting the best possible deal for your particular situation.
You can access your credit score for free by signing up with Credit Karma. These services are free and let you know where you stand on the credit scoring system that ranges from 300 to 800.
To get the most competitive interest rates in Canada, you will need a credit score of 720.
Even if your credit score is under 720 since your credit score is on the weak side, you may consider holding off applying for a car loan, but you shouldn’t.
While the interest rates you are being quoted will be high, they will be more competitive than the interest rates that are being quoted a few months from now.
This is why you need to start reviewing the various loans that are available for borrowers with weak credit.
Where to get a great weak credit car loan in Copetown
The best play to get these loans is with the help of a local car dealership. The dealership will have the most extensive network of lenders in Canada.
There will be lenders that offer weak credit car loans, and you can seize the opportunity before the market changes.
Since you are buying a previously owned car, you should spend a little bit more and take the extended warranty for added peace of mind.
We’d love to help you find a great used car with bad credit in Copetown. 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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