FINANCING A CAR WITH BAD CREDIT OR NO CREDIT
Do you have a poor credit score, or no credit at all? Don’t worry, KO Auto Finance is here to help! Not only do we offer loans to all credit types – we also make it as easy as possible for our customers to get approved quickly.
If you have a credit score of less than around 600, you would fall under the area of having “poor” credit. This could be because of missed or late payments, or perhaps you had no credit due to being new to Canada, recovering from a bankruptcy, etc. and are now rebuilding it. Here are some tips on how to finance a vehicle when you have bad credit, or no credit.
Understand Your Budget
Figure out your monthly income, calculate your bills, and from there come up with a payment amount that you could afford every month. This will help you find a vehicle in your price range based on what you could pay bi-weekly. KO Auto Finance will work with your budget and find a vehicle and rate that works for you. If you want to trade-in your current vehicle, your trade-in vehicle will lower your monthly payment.
Used VS New
If you want to get approved for a loan at a great rate, a used vehicle might be best for you. Currently, there is an inventory shortage with new vehicles – so usually you have more variety within the pre-owned market as many dealers are depending on their used vehicles to fill up their lot. You’ll get almost all the benefits of a new car but at a lower purchase price. Also, depreciation isn’t as big of a concern when you shop used.
Apply for financing before you start shopping, this will help you understand the rate you qualify for. If you are unable to get pre-approved – the experts at KO Auto Finance will work with you directly to help you rebuild your credit.
Have a Down Payment Ready
Decide whether or not you can afford to make a down payment and how much your down payment should be. The down payment is a percentage of the purchase price paid upfront. If you have a down payment, your chances of being approved are even higher – and this will end up lowering your payments in the long run!
Do You Have a Cosigner?
A cosigner is a trusted friend or family member who agrees to share responsibility for your auto loan. A cosigner can increase your chances of approval because they decrease the level of risk for the lender.
Apply For Financing Today!
At KO Auto Finance, we take pride in being able to offer auto loans to all types of customers. Whether you’re new to Canada, a Student, recent divorcee, etc. Regardless of your credit score, we strive to help you get a loan! Contact us today to apply for a loan, shop for a vehicle, or book a consultation with our finance experts to help rebuild your credit.