There are a variety of misconceptions surrounding the process of getting an auto loan if you have bad credit, with the main one being that you simply cannot get one when in this circumstance. However, this is incorrect...
Dealerships and lenders in Canada are finding that they need to make auto loans more available for both good and bad credit customers alike. As a result, Canadians are now able to get auto loans in instances where they might not have been able to before. This is due to the introduction of new programs and services such as those offered by Canada Drives.
What’s the difference in getting an auto loan with bad credit?
The greatest difference between getting an auto loan with bad credit and good credit is the process of how you receive one. If you have a great credit score, you can typically walk into a bank and get an approval for a loan quite easily. However, in the instance that you have bad credit and need an auto loan, it isn’t so simple. Unfortunately, it is likely that a normal bank will not provide a loan as easily.
With that being said, there are lenders that specialize in helping people with poor credit. These lenders have programs set up to help you get a vehicle loan. It is likely that you will have certain conditions on the loan, such as how much you can spend or how old the vehicle can be. Typically lenders will want to ensure that the consumer with bad credit can afford the vehicle at hand.
Ok, so how can I get a bad credit car loan?
We encourage you to try going to your bank to apply for an auto loan if you are unsure of what your current credit score is. Another option would be to walk into a dealership to see what they might be able to offer.
However, the problem is that this can be extremely time consuming and frustrating if you don’t receive your desired approval. Canada Drives works with quality dealerships across Canada who have special departments setup to assist customers in bad credit scenarios in finding a car loan. We introduce new programs every month to provide our consumers with great options for both new and previously owned vehicles. If you would like to know your options, submit an application for free today and we will contact you.