Buying a Car during a Consumer Proposal
Today more than ever before, good credit not only impacts you financially, but also your overall well-being. However, far too many individuals or families have had or are now facing the stress of a debt-burden that has affected their lives. So, what credit do you need to get a car loan? If you have had or looking at filing an insolvency in Canada (bankruptcy or consumer proposal), can you still apply for an auto loan?
The simple answer is YES!
Turning life around from a financial crisis can be one of the hardest things to experience, and when it comes to your car, that is a necessity for work and family. Did you know that financing a vehicle is one of the strongest credit rebuilding tools? The stigma attached to poor, or damaged credit unfortunately leads far too many people to accept, or be pressured into high-interest loans with promises of lower rates in 6 – 12 months.
Don’t fall into that trap – there are FAIR options for you to buy a new or used car with bad credit!
How to buy a car with bad credit?
Bad credit can be turned around with an insolvency, and an auto loan can be a big part of this. It starts with accepting this as a transition period so the right vehicle for the individual or family should address meeting the needs, but equally important as the vehicle is that the payment is not a stretch to the budget.
Many of the major banks and auto lenders offer fair rates that present the best opportunity to rebuild credit, in addition to providing a loyalty program that rewards perfect payment history with lowered rates in the term. This presents the opportunity to upgrade your vehicle with re-established credit.
How to qualify for vehicle purchase during a consumer proposal the right way?
If you are thinking, can you get credit while in a consumer proposal, or what are options of getting a car after a consumer proposal?
Start by ensuring the information you are provided comes from auto finance brokers experienced with car financing for bankrupt or proposal clients. They will know the best lender(s) to secure an approval for you. Typically, a finance manager in a dealership will “shot-gun” your application to every lender possible – further damaging your credit score, and likely resulting in a decline.
Your current credit profile does NOT define you – bad credit auto loans can be a way to take you from zero to hero and improve your credit-worthiness. Make smart, informed choices not only on your next vehicle, but that your auto finance broker cares as much about your credit as you do!