No credit? It’s Still Possible to Finance a Car Purchase in Barrie
If you are considering a car purchase, but have no credit, you need to do some number crunching. The bottom line is – how much can you realistically afford in car payments each month? There is a rule-of-thumb guideline that car payments shouldn’t exceed 15% of your take home pay.
And that figure doesn’t take into account other variables in your budget. What are your needs for a car? Many commuters find Barrie an ideal place to live but work could be many miles away in the GTA and gas – and insurance – can be costly. Do you need a highway car or will your use be mainly in town, and ferrying children (which will impact your choice of car size and safety features.) Also, housing costs are rising in Barrie, and may be taking a bigger chunk of your income, leaving less for a vehicle.
Your income and the kind of car you need will govern the next step in the process, which is learning about your finance options. What are your choices if your budget is already stretched to the limit, or you have a poor or non-existent credit rating?
Good News: You Have Options
Luckily, there are specialty finance companies like Auto Loan Services that not only can find ways to work around your poor credit rating, but can also supply you with the perfect vehicle for your needs. To get started in determining the size and carrying cost of the loan, the sales representative needs some information:
- A valid Ontario Drivers license
- Proof of income – either your most recent pay stub or your last three months’ bank statements
- Insurance information – your broker’s name and phone number
- A Void cheque or pre-authorized debit form
The finance representative will then consult with you as to the kind of vehicle you need, and factor in a Trade-in, if that is part of your purchase plan. The interest rate you will pay on that loan will depend on factors like credit and employment history, the kind of vehicle you want, the down payment you’re making, and the existence of a trade-in vehicle.
It all begins with an online application. It is that easy. In the particular case of Auto Loan Services, once your loan is approved you can then access a huge dealer network with over 5000 vehicles – new and used – to choose from. Your ideal, affordable vehicle can be delivered to your door, with a thirty day return guarantee.
More Good News: You Have Protection!
Buying a vehicle is a big deal, financially. The outlay is considerable, but successfully following a manageable payment schedule will have a positive effect on your future credit rating. And it is important to know that Consumer Protection Laws apply to your purchase. But you must do your homework throughout the process – from choosing a vehicle that realistically suits your needs, to working out an affordable payment schedule with your car loan representative. And then educate yourself as to your rights and responsibilities under the agreement you ultimately make.
Bottom line: Having no credit rating should be no bar to financing a car purchase in Barrie.