Commuting to work is something none of us wish we had to do. It can be long, cuts out of our day, and forces us to leave for work even earlier. While commute times range from person to person throughout the country, the same can’t be said for how people commute to work. Most people still take their car, despite the availability of other options like public transit, biking or walking.
For example, in the city of Brampton, Ontario, more than 80% of people still drive for their commute to work. Of course, if you want to be able to drive to work like most residents, you need to have a vehicle. Unfortunately, most cars can cost thousands of dollars, money which most people simply do not have in the bank. Thankfully, car loans exist and can make it easier for more people to afford a vehicle.
Can’t decide between a new car and a used one? Check this out.
What Type of Vehicles Can You Get?
The great news about car loans in Brampton is that they can essentially get you any sort of vehicle you want. This includes:
- Electric Vehicles
The actual car you get will depend on a number of things. This will include what you need the vehicle for, how much you plan to drive it as well as the vehicles available at the dealership you choose. Some consumers need a large truck for work or to transport their large family, while others will prefer a small and fuel-efficient vehicle to zip around town quickly.
Of course, just because a car loan allows you to purchase any vehicle you want doesn’t mean you should. It’s important that you create a realistic budget and stick to it (Do you know how much car you afford? Find out here). Only spend what you can afford, as overspending on a vehicle is one of the easiest ways to find yourself financial trouble. Find out how much you can afford, and be sure not to spend any more than that.
Bad Credit Car Loans in Brampton
While car loans are relatively simple to get for most people, what if you have bad credit? Bad credit is generally seen as a credit score lower than around 600 and having low credit makes you a more risky borrower in the eyes of lenders. As a result, you can expect to pay a higher interest rate.
Did you know that a car loan can help improve your credit? Learn more here.
Thankfully, it is indeed possible to get a car loan even with bad credit. However, there are a few things you should do in order to give yourself the best chance of successfully getting one. First of all, you need to try and save for a large down payment. The larger the down payment you put up, the less risk you pose to the lenders. If you put down a large percentage of money for a down payment, lenders might be willing to look past your bad credit score.
Next, you want to ensure you take time to find the right lender. Some lenders specialize in working with all types of borrowers, while others will only work with people who have good credit. Of course, you can avoid having to search for the right lender or saving for a large down payment if you decide to increase your credit score ahead of time. Increasing your credit score can be done by doing a lot of different things including:
- Using credit responsibly
- Ensuring to make all of your payments in full and on time
- Not constantly applying for new credit
- Keeping old credit accounts open
- Making sure your credit utilization is low
Whether you decide to get a bad credit car loan in Brampton or increase your credit score first, driving away in the car you need or want is possible.
For even more information about credit scores in Canada, click here.
Why Car Loans Are So Important
As mentioned in the introduction of this article, cars are expensive and most people don’t have thousands of dollars just sitting in their bank account to spend on a car. However, not having enough cash to buy a car isn’t the only reason almost all adult Canadians have had a car loan at one point in their lives. There are a variety of other reasons people might seek out and need a car loan, which includes:
- Upgrading your current model to a newer one
- Getting a larger vehicle for your family
- Getting a more reliable car for harsher weather
- Replacing your old because it’s on its last legs
You don’t often need to provide lenders with a reason for why you are getting a car loan, so there is really no wrong reason to get a car loan. Of course, be sure to only get one that you can afford to pay off in full, plus any interest.
Should you buy a new car or repair your old one? Learn more here.
The Best Car Loan For Your Needs
Looking for a car loan in your area? If so, look no further than Loans Canada. Feel free to reach out and we will be more than happy to assist you.