Bad Credit Car Loans in Canada
Bad credit comes as a result of several uncomfortable situations such as divorce, financial constraints or medical conditions and in such cases, a person who wishes to purchase a new or old car will opt for an auto loan as a source of financing which can be a difficult decision. It is however much easier to request for a car loan unlike a personal loan because if one defaults, the lender can simply reclaim the vehicle.
We are the best examples of lending agencies in Canada. There are several bad credit car dealers in Canada, most of which are private leasing companies, which are willing to extend a loan to bad credit customers which are likely to deny potential customers.
Terms and Conditions
Terms and conditions vary with different agencies but the standard that cuts across all boards is that the customer is discharged of bankruptcy, earns a minimum salary of $1,750 per month and has a lifetime of at least 6 months in their current job.
A thorough analysis is made on the credit history before the loan is dispatched but some companies will only pay attention to the current financial status. However in most cases, what influences the type of car, the amount to pay for down payment, interest and duration is usually the bad credit history and the salary of the customer. Since some agencies may turn down the loan application, it is advisable to approach as many lenders as possible and gauge the rates and requirements for the different agencies and choose the one that is most affordable.