5 Simple Ways to Get a Car/ Truck Loan
Bad Credit Doesn’t Mean You Can’t buy a used car or truck and doesn’t automatically mean you can’t get a car loan with loan terms that break your monthly budget.
“ Half the time, we’re not making any money on the deals”, says Moe Jolly, Manager for The Car Lot Etc, a dealership in Sudbury that is proud to take on clients from all credit tiers.
#1) Don’t take someone else’s word that your credit is bad. Check for yourself by grabbing your credit report and score. Even two candidates with an identical score might not be the same in the eyes of a used car or truck loan lender, depending on credit history.
#2) Contact your preferred used car/ truck dealership to ask them if they have credit rebuilding programs they offer to help you purchase a vehicle now. For example, The Car Lot has a large inventory of used vehicles and a top-notch credit rebuilding program.
#3) Start Prepping Early! If you’re someone with bad credit and want to buy a car or truck it’s best to start planning at least 3 months in advance. You need to start with your credit report to see how you would look to lenders. Then it’s time to take action on any outstanding items. You can go to the Government of Canada’s website to get your free credit report.
#4) Get Pre-approved and Choose a Dealer! To find out which car dealerships may be willing to finance people with iffy credit, pay attention to their ads and signs. If it says something like “Bad credit? No problem!” then this is a good place to start. Don’t worry that filling out loan applications will harm your credit score. Lenders know you are searching for the best rate and if you do it multiple times within a 14-day period, it will only count as one “hard inquiry” on your credit score.
#5) Stay in Your Price Range. Most people know what they can afford for a monthly car payment. But that sometimes ignores the bigger picture. Just because you qualify to buy a $22,000 midsize sedan doesn’t mean you should buy it. For example, if you scale back to a $17,000 compact sedan, you’ll free up $100 per month. This is money you could put towards gas, insurance or to pay other bills.
Bring Documents to Show You’re a Good Credit Risk such as:
- The most recent pay stub from your job
- Your utility bill
- Your Driver’s License
- Three personal References
Once you’ve done your credit homework, shopped within your price range and made all your payments, you’ve not only improved your credit score but also set up positive finance habits that will serve you well for years to come!
See how easy applying for vehicle financing is with The Car Lot! APPLY NOW!