When you have less-than-perfect credit, you know that it can be quite difficult to obtain any sort of loans. However, if you need a new vehicle, then you know that you might have to do whatever it takes to get a loan. Having a car is very important and most families can not go without one. Thankfully, if your credit is not so great, there are still some options for you to get car loans in Manitoba, Canada. While the choices in auto loans that people with bad credit have are not necessarily as great as those with good credit, some decent ones can still be found.
How to Get Approved for a Bad Credit Car Loan
Even though getting a loan for a car with bad credit is hard, it is not impossible. Most lenders rely heavily on your credit score when determining whether or not to approve you. However, there are many other factors that some lenders will take into consideration. These other factors need to be heavily relied on to have any chance of getting approved for a car loan with bad credit.
The type of car that you are looking to obtain a loan for can help you to get approved by a lender. Getting a car loan is much easier than getting other types of loans when you have bad credit because the vehicle can be repossessed and sold to cover the loan. To have a better chance of getting approved, it is best to choose a car that is priced for less than or equal to its worth. Also, to help get the approval, you should choose a practical vehicle instead of a flashy, expensive one.
This part of the loan process is very important when you are trying to get approved for a bad credit loan. It may, however, mean that you have to wait a little longer to get your next car. When you have a low credit score, you will need to come up with a big down payment to have any chance of being approved. A big down payment is a way of compensating for a low credit score.
Saving up a big sum of money is a way to show a lender that you are being more responsible with your money. It will prove to the lender that you are less of a risk. If your down payment helps make the vehicle worth more than the loan, you are in good shape for being approved. Overall, the more money you can afford to put down on a loan, the better chances you will have of being approved for the car loan.
Local Bank or Credit Union
When you are looking for a lender for a loan, whether you have bad credit or not, you should first try your local bank or credit union. If you have an account with them in good standing, you will have a good chance at getting approved for a loan. Other factors that help you get approved are being at the same residence for multiple years, having a steady job for many years and a big down payment.
Most of these factors will also be dependent on the loan amount that you are wanting. If you are trying to obtain a car loan with little or no money down, you will need to find a car to buy that is priced at or below the loan value. The more money that you put down, the less of a risk you will be viewed as by the lender.
Small Car Lots
If you need a car quickly and don’t have much time to save up a lot of money for a big down payment, you should consider shopping around at some of your smaller local car dealerships. Oftentimes, these dealerships will offer their customers in-house financing. This means that there is no “lender” to get approval from. The dealerships often have their own set of requirements to meet in order to get approved.
If you can prove to the owner of the dealership that you will make your payments each month on time, then you will have a good chance at driving away with a new car. Most of these smaller dealerships will take on more risks than big lenders because they need the money. The only downside to buying a car from a small dealership is that you might have to end up paying more in interest because of your bad credit. The good news, though, is that you will build your credit back up by making on-time payments each month for your new car.
Best Places to Get a Car Loan with Bad Credit in Canada
While there are many options for obtaining a car loan with bad credit, most of them will charge you an outrageous interest rate. If you are serious about getting a new car but still want to find a good deal, then you need to check out some online car loan lenders. Even when you have less-than-perfect credit, there are many lenders online that will approve you.
Because there are so many different websites with lenders, do not go filling out every application available. The best option is to find websites that allow you to fill out one form and get loan quotes from multiple lenders at once. This is a great way to find the best loan option for your situation and with the best interest rate possible. Another great place to look for loans online is with lenders who will also help you rebuild your credit while giving you a car loan at the same time.
Our staff has compiled a list of car dealerships that can help secure a bad credit car loan in Manitoba, Canada.
Autowest – Reviewed by Thomas Vargo on Dec 12. Rating: 4.0
Canadian residents can get help with bad credit financing with Autowest.
Multi 4 Division Discount Dealership of all makes and models offering factory Fords, Chevys, Chryslers, Imports, off-lease returns, buy backs, repos and pre-owned vehicles. They can help with past credit problems.
Location of Autowest:
2150 McPhillips St.,
MB MB R2V 3C8, Canada.
Telephone: (888) 753-0247.
Vickar Mitsubishi – Reviewed by Thomas Vargo on Dec 12. Rating: 4.5
Auto dealer who’s specialty is high risk loans.
They have a skilled and knowledgeable sales staff with many years of experience that can help you find the Mitsubishi vehicle you want. They have a large auto financing provider network, and they specialize in bad credit and high risk auto loans.
Location of Vickar Mitsubishi:
950 Regent Ave.,
MB R2C 3A8, Canada.
Telephone: (866) 710-6403.
House of Nissan – Reviewed by Thomas Vargo on Dec 12. Rating: 4.5
Has a customer service staff that can help with bad credit car loans in Canada.
They are committed to good customer care and ensuring that their customers are presented with all of their financing options upfront. They have bad credit loan programs available.
Location of House of Nissan:
3620 Victoria Avenue,
MB R7B 2Z5, Canada.
Telephone: (800) 862-6339.
Precision Toyota – Reviewed by Thomas Vargo on Dec 12. Rating: 4.5
Loan programs offered with weak to strong credit.
They offer with various terms and rates, loans for those with weak credit and for those with strong credit, along with leasing programs.
Location of Precision Toyota:
404-18th Street North,
MB R7A 7P3, Canada.
Telephone: (204) 725-0508.
Gauthier Chrysler/Dodge/Ram/Jeep – Reviewed by Adele Dannels on Dec 12. Rating: 5.0
Has same day car financing in Canada with bad credit.
Is Canada’s leader in the sale of new and used wheelchair vans. Their inventory of more than 1250 new and used vehicles is the nation’s largest. They utilize 12 major lending institutions to ensure the best financing package to fit your budget. The professional credit re-builders can get your financing approved in the same day regardless of credit history.
Location of Gauthier Chrysler/Dodge/Ram/Jeep:
1375 Regent Ave.,
MB MB R2C 3B2, Canada.
Telephone: (866) 418-6853.
Powell Motors LTD – Reviewed by Adele Dannels on Dec 12. Rating: 5.0
They can help people with bad credit problems.
They specialize in Chevrolet, and Buick, cars, trucks, mini-vans, and sport utility vehicles (SUV), and also carry a full range of GMC trucks that will suit any purpose, from farming and contracting to logging. Their full service finance department deals with several financial institutions to help you get the best credit package that meets your needs: Bank of Nova Scotia, Royal Bank, TD Canada Trust, Bank of Montreal, VFC, GMAC.
Location of Powell Motors LTD:
804 Main St.(Hwy 10A),
MB R0L 1Z0, Canada.
Telephone: (204) 734-3464.
Waverley Mitsubishi – Reviewed by Adele Dannels on Dec 12. Rating: 5.0
Financial lenders that can assist people with a bad credit history.
Their lenders are ready to assist and offer you the best rate and options possible with bad credit. Beside carrying new Mitsubishi vehicles this Manitoba dealership also has a wide selection of used makes and models, such as Honda, Toyota, Nissan, Mazda, Hyundai, Ford, Chevrolet, Dodge and much more. They also offer many luxury brands such as BMW, Mercedes, Infinity, Lexus and Porsche. All of their pre-owned vehicles come with a 30 day exchange privilege.
Location of Waverley Mitsubishi:
Unit 300 – 1717 Waverley Street,
MB R3T 6A9, Canada.
Telephone: (866) 538-5911.