Throughout Nova Scotia, people are buying cars. New cars and used cars, SUVs, pickup trucks and minivans are being driven off car lots on a daily basis. Not all of these people have good credit. In fact, more often than not, people have bad credit. This isn’t stopping them from getting the car loan they need to make the purchase.
You may have been told by someone that you can’t get approved for a car loan without good credit. All of the lenders and car companies look at your credit. If it’s not above a certain number, you won’t be approved. This may have been true several years ago but it’s not the truth now.
Today’s economy has led a lot of people to file bankruptcy and experience foreclosure. Throughout Nova Scotia, there are many people who suffer from a low credit score. That doesn’t stop them from accessing a new or used car, though. There are lenders who don’t care about the credit score – they care about more important things.
What are these more important criteria? Namely, it’s your ability to afford the monthly payment. At the end of the day, a lender wants to make sure you can make the loan payment to them. They don’t care about your mistakes of the past. Instead, they want to know that when your car payment is due that you can pay them the full amount and by the due date.
As long as you are financially capable of making the car loan payment, your bad credit isn’t really factored in. This means that your application is going to focus more on who your employer is and what you get paid as opposed to what the credit score is from the different credit reporting agencies. If you have been regularly employed, then you can get approved for a car loan.
Loan companies and auto dealerships both will use your employment status to provide you with a loan. Some will ask for employment verification while others will not. Ultimately, however, it is your job and not your credit score that will give you the approval.
Bad credit can be considered high risk. As a result, you may pay a slightly higher APR than you would if you had good credit. Some lenders will provide you with better rates. This is why it’s a good idea to complete at least two applications. The application simply gives the lender permission to look at your personal details and provide you with an offer. You aren’t required to accept the deal provided to you. When you have two deals to choose from, it’s easier to see which is the better deal.
You need to look at several things when you have a deal for a car loan in front of you. Many of the lenders in Nova Scotia will be able to give you a competitive rate. You need to look at the rate as well as the total loan term. The loan term can vary from 24 months all the way to 84 months. Depending upon your credit score and the amount of money you are trying to borrow, the loan term may be less than 84 months.
The higher the loan term, the higher a risk it is for the lender. However, a higher loan term also means there are more months to split the payments over, which can ultimately save you a significant amount of money on a monthly basis. You need to make sure your loan payments are affordable without spending too much money in interest over the course of the loan.
Explore the different opportunities from the lenders. While one may offer you a lower interest rate, another one will offer you better loan terms. This means you will have to calculate the payments to see which has the best deal for you and your financial situation.
The loan amount may also differ. If you want to buy a new car instead of a used car, you need to make sure that your loan amount is enough to cover it. Some of the lenders in Nova Scotia may be willing to take a chance on you while others are still going to look at your credit score to determine the loan amount. This may be the difference between buying a new and used car at the dealership.
Filling out a loan application to get pre-approved for a loan is a great idea. You don’t want to step into a Nova Scotia dealership without knowing some of the terms. If you can only get approved for a certain amount of money, you don’t want to look at any cars on the lot that are above that amount – it’s only a recipe for disappointment.
Shopping for a car will be easier when you already have the pre-approval for the car loan. You will know how much you can afford as well as what your monthly payments will be. You can then speed up the process by simply choosing a car within the price range of the loan and then completing the paperwork. The waiting period in the finance department will be drastically reduced.
Car loans for bad credit are out there and you can tap into them easier than you think. They don’t all focus on credit scores and not all of them are going to issue you interest rates that are double or triple what is being offered to those with good credit. Forget about what you think you know about car loans for bad credit in Nova Scotia. More lenders are willing to take a chance on you than you realize.
You may be able to drive away in a new or used car despite having bad credit. With so many dealerships in Nova Scotia to choose from, you owe yourself the chance to explore your options. As long as you have steady income, you may be surprised by the deals you can get approved for just by shopping for a loan from the right lender.
Our staff has compiled a list of car dealerships that can help secure a bad credit car loan in Nova Scotia, Canada.
Hollis Ford – Reviewed by Thomas Vargo on Dec 10. Rating: 5.0
They have been rebuilding credit in Canada for over 30 years.
This dealership carries both new and used Ford cars and trucks. Auto Plan Financial is their preferred financial services branch and they have been successful in searching for the best rates and terms to help you get behind the wheel and get your credit back on track.
Location of Hollis Ford:
266 Robie Street,
Nova Scotia B2N5G7, Canada.
Telephone: (902) 895-5000.
Scotiashare Automotive – Reviewed by Thomas Vargo on Dec 10. Rating: 4.5
Everyone is approved regardless of credit.
This used car dealership carries a large selection of used cars, trucks and SUVs and they claim to have 100% guaranteed credit approval regardless of credit problems.
Location of Scotiashare Automotive:
981 Park Street,
Nova Scotia B4N 3X7, Canada.
Telephone: (877) 674-8291.
Dale Chaisson Auto Sales – Reviewed by Thomas Vargo on Dec 10. Rating: 4.5
Bad credit programs for all types of credit situations.
They offer good vehicles with warranties at very competitive rate for both good credit and bad credit. This used car dealer specializes in car loans for people with bad credit since 1994 and they have a program to fit any credit situation.
Location of Dale Chaisson Auto Sales:
30 Trider Crescent,
Nova Scotia B3B 1R6, Canada.
Telephone: (877) 834-5589.
Bryden Financing and Auto Sales Inc. – Reviewed by Adele Dannels on Dec 10. Rating: 4.5
They claim 97% of all car loans are approved.
Their inventory has used model cars, trucks, vans and SUV’s. They have closed over 3 million dollars in special finance auto loans for people with credit problems, no credit score, or bankruptcy.
Location of Bryden Financing and Auto Sales Inc.:
391 Sackville Drive,
Novia Scotia B4C 2R9, Canada.
Telephone: (902) 865-4495.
Race Auto Group – Reviewed by Adele Dannels on Dec 10. Rating: 4.0
Get approved at Race Auto Group for a bad credit loan.
Carries over 150 used vehicles to choose from. Their specialists will match your application with a lender that specializes in a bad credit car loan.
Location of Race Auto Group in Dartmouth:
692 Windmill Road,
Novia Scotia B4C 2R9, Canada.
Telephone: (902) 830-7223.
Location of Race Auto Group in Truro:
204 Robie Street,
Novia Scotia B2N1K8, Canada.
Telephone: (902) 830-7223.
MacPhee Chevrolet Buick Cadillac GMC – Reviewed by Thomas Vargo on Dec 10. Rating: 5.0
They deal with a large network of banks that can help you get a auto loan with bad credit.
This dealership has an extensive inventory of used cars for sale in Dartmouth, Nova Scotia, including used Chevrolet, used Buick, used Cadillac and used GMC cars, trucks, SUVs and vans. They work with a wide array of financial institutions that can help with past credit problems such as the Bank of Nova Scotia, Royal Bank, TD Canada Trust, Bank of Montreal, CIBC, HSBC, Credit Unions, Wells Fargo, and GMAC.
Location of MacPhee Chevrolet Buick Cadillac GMC:
636 Portland St.,
Nova Scotia B2Y 3Z5, Canada.
Telephone: (902) 434-4100.