Getting A Car Loan In Canada While Still In Or Coming Out Of a Consumer Proposal
A consumer proposal is an intentional arrangement between an independent trustee, the debtor and the creditors. Simply put, it is a plan which outlines how much a person can pay towards unsecured debts over an agreed upon period of time (typically up to 5 years). The arrangement also includes information on whom will be repaying the debt and when.
The whole concept behind something like a consumer proposal is to have all information in place so that everyone involved know when their debts will be paid. The trustee will be a licensed bankruptcy or consumer proposal trustee who will more than likely be managing several consumer proposals at a time.
While a consumer proposal is less impactful than a bankruptcy, your credit history is still impacted. This means that many mainstream lenders will think twice, or charge higher interest rates for any future lending, but there are car loan companies that offer bad-credit car loans to individuals who have a tarnished credit or who are coming out of a consumer proposal.
It isn’t impossible for you to get a loan once you get out of a consumer proposal, here a few tips that will help you get the car you need; whatever your financial past is.
Provide Certification of Completion
For those that have already completed their consumer proposal, you should always provide proof that you have successfully completed it and are in a position to apply for a new loan.
Be sure to provide all documentation related to your consumer proposal. This could include the certificate of completion and any other related documents provided by your trustee.
Maintain A Good Debt-To-Income Ratio
When applying for a car loan while still in a consumer proposal, or soon after one, it is vital that you have a low debt-to-income ratio.
This shows that you are less of a risk in the eyes of the lender; therefore increasing your odds of getting the car loan you are looking for.
Apply through a Non Traditional Lender
While it can often come with stricter guidelines, getting approved for auto financing through a private lender Is much more likely than going through the usual avenues of major financial institutions.
At Auto Loan Services, we provide bad credit auto loans for people in all kinds of financial situations including Consumer Proposals. We offer fair terms and fair rates to get you on the road to your new car!
Contact us today to get on the road to your new car!