While other modes of transportation like public transportation and biking are becoming more popular in Canada, driving, especially in smaller cities like Brandon, is still sitting in first place. Since a large majority of Canadian workers drive to work, having a car is essential (click here to learn more about commuting in Canada). This is especially true in cities with limited public transit like Brandon and many other cities in the prairies. Without a car, getting around effectively can be slow, inefficient, and a real headache.
However, trying to afford a car in any city isn’t always easy. They can cost thousands of dollars to purchase, not to mention the many other costs you will incur during ownership. Thankfully, car loans in Brandon make it much easier for almost anyone to afford a vehicle they need.
What Types of Vehicles Can You Get With a Car Loan?
So what type of vehicles can you get with a car loan in Brandon? Well, the answer is that you can essentially get any kind of vehicle that you want. Most lenders will be willing to provide car loans for all different kinds of vehicles without an issue. Types of vehicles you can get include:
- Electric vehicles
That’s right, no matter what kind of vehicle you are interested in, there is a lender for you. Of course, the vehicle you get should line up with your needs. The right vehicle for someone in a small town who needs to haul things will be vastly different from the one needed by someone who wants to zip around the city quickly. Before you even look at any vehicles, be sure to identify your needs and look at the things you require in a vehicle.
Also, with how unpredictable the weather can be throughout Canada, especially in Brandon, be sure you have a car that is reliable enough to stand up to the ever-changing forecasts (click here for everything you need to know about winter tire laws). However, be sure to stay within your budget. You might love a car, but no vehicle is worth going broke for. Plenty of people have gotten into serious financial issues because they purchased a vehicle they simply cannot afford to own or maintain. Always keep your budget in mind when looking for a vehicle. Of course, the inventory of your hometown dealership will also come into play when deciding the kind of car that you can get.
Considering an extended warranty for your new or used vehicle? Read this first.
Common Reasons People Need Car Loans
Now that you know the types of vehicles that you can get with a car loan in Brandon, what are the reasons that people need a car loan? Of course, perhaps the most common and popular reason is that people just don’t have the money to pay for a car with cash. As a result, a loan becomes necessary to ensure they can actually get a car that they want.
However, not having enough cash to afford a car isn’t the only reason that people might need to secure a car loan at one time or another. Other reasons for getting a car loan include:
- Getting a larger vehicle for your family
- Finding a more reliable car for changing weather or lifestyle
- Getting a newer model
- Your old car died and no longer works
There is no right or wrong reason for a person to get a car loan. What is most important is to only take out a loan that you can afford to pay back. If not, you could find yourself in a lot of financial trouble. In fact, purchasing and financing a car that is out of your price range is one of the most common ways for people to begin experiencing problems with credit.
Bad Credit Car Loans in Brandon
Speaking of troubles with credit, dealing with bad credit is a common occurrence for many Canadians from coast to coast. A variety of things can lead lead to bad credit, from debt to overspending to financial emergencies. But what exactly is bad credit?
In Canada, credit scores range from 300 to 900. Anything under 600 or so is generally seen as bad credit. Simply put, the higher your credit is, the easier it will be to borrow money and the better your interest rates and terms will be.
While having bad credit can lead a person to feel and think that all hope is lost, that’s not actually the case. Thankfully, there are bad credit car loans in Brandon that can allow almost all residents to get behind the wheel of the car they need.
Improving Your Chances of Getting Approved For a Car Loan
In particular, there are two different things that people with bad credit can do to up their chances of being approved for a car loan. The first is to be sure to save for a large down payment. If you put a lot down on a car, it reduces the total amount you will have to borrow and reduces the risk for everyone involved. The larger the down payment, the easier it will be to borrow money affordably, even with bad credit.
The other thing you can do is to take time to find the right lender. In every city, there are a variety of different lenders, each with their own rules about who they work with. You need to find lenders who are comfortable working with those who have bad credit. While the rates and terms might not be the greatest, at least you will be able to get a car loan.
Of course, you can also simply hold off on getting the car loan until your credit improves. There are several different things you can do to improve your credit such as using credit responsibly, using a secured credit card, making your payments in full, and checking to make sure there are no errors on your credit report.
This option may not work for everyone, as some consumers may need a car loan right away, but if you can hold off for a few months, improving your credit is always a good idea.
What About Trading in my Old Car?
Many dealerships will allow individuals to trade-in vehicles that the dealership will turn around and sell themselves. It is a great way to reduce the price of your new car by a little bit, while also getting rid of your old one.
A trade-in is where you give your car to the dealership and they will often reduce the price of your new car based on what they feel your old car is worth. However, it is also a good idea to temper your expectations in these situations.
While many go into a dealership expect to get thousands and thousands of dollars from their trade-in, this is rarely the case. Usually, you will get a couple hundred dollars up to maybe a couple thousand if the car is high quality. A trade-in should only be expected to make a dent in the overall cost of your new car, not almost cover it entirely.
Some may prefer to sell their old car privately to make a little bit of extra money, but others simply won’t have the time or energy to do that.
Was your car loan application rejected? Here is what you should do next.
Using Your Vehicle to Borrow Money
Did you know that you can also use your vehicle to borrow money? Well, it’s true! Vehicle title loans can help you gain access to quick and relatively affordable cash when you need it.
If you own your vehicle outright, you can put it’s title up for collateral to get approved, even if your credit is less than perfect. However, your vehicle must have some value if you want to use it as collateral to get a vehicle title loan. Also, you must own the vehicle in most cases for a lender to be willing to provide you with the money you seek.
Of course, if you get a vehicle title loan, you need to be very careful. If you begin to miss payments or eventually default on the loan, you could potentially lose your vehicle. As a result, vehicle title loans should only be taken out in amounts that you are confident you will be able to repay.
Can you get a second vehicle title loan? Find out here.
The Right Car Loan For You
If you are in need of a car loan in Brandon or want to learn a little more about your options, be sure to reach out to Loans Canada. We are confident we can match you with the right lender based on your unique needs.