No Credit? You Can Still Buy a Car
A bad credit or even a no credit rating is not a bar to financing a vehicle in Brantford. Not only that, but it is possible to shop for the ideal vehicle from your home or office. The services of a specialty finance company that can source a loan for you can be accessed online. It’s as simple as filling out a quick form with a few details, and then having a finance representative follow up on your application.
To get a car loan, a valid Ontario Drivers License is needed. Proof of income (your most recent pay stub or three months of bank statements if self-employed) is necessary. Other requirements include Insurance information and a Void cheque or pre-authorized debit form. The applicant must be at least 18, and have a gross monthly income of $2000 minimum.
That Sounds Too Easy!
It can indeed be an easy process. It begins online and can move swiftly – and in a matter of days a new car can be delivered to your home. And not only do you now have wheels, but you have the means now of establishing a solid credit rating for the future by following the terms of your loan agreement.
It all starts with homework. The finance representative can help you understand budget considerations, but it is important to work out your payment abilities. As a general rule, vehicle obligations should not exceed 15% of your gross income. You should add maintenance, gas and insurance on top of those calculations as well.
You must consider the kind of car you realistically should buy. It is tempting to get one with all the bells and whistles but it is more important to get a car that suits your needs, not your wants. Remember: when you are budgeting for your car, focus on the total cost of the car – not just the payments.
Making a good choice is easy with a specialty finance company. Clients of Auto Loan Services can choose from an inventory of 5000 new and used vehicles in a large network of dealers.
Finally, educate yourself as to your rights and responsibilities beforehand by studying the loan agreement carefully, and also reading up on the responsibilities that come with credit and loans in general.
Negotiating is Important
Loan interest rates are calculated using several different factors, including credit history, employment history, age of the vehicle to be purchased and the amount of down payment. It is also possible to calculate in a vehicle Trade-in. A previous bankruptcy is not an obstacle; the finance representative will simply match you with specialized partners who have programs to assist clients with past or present bankruptcies.
It can also be a good idea to compare loan offers from lenders, with special consideration given to things like interest rate, payment schedule, any financing fees or charges, and what is the length of the loan. (The longer the term of the loan, the lower your regular payments.)
It is possible to have no credit history and get financing for a car in Brantford. Any risks to your budget can be lessened by homework on your part – being clear about the kind of vehicle that makes the most sense for you, and then negotiating a good and workable loan agreement.