It is becoming more and more common for those working in places like Toronto to commute in from a suburb instead of paying the huge costs of living that goes along with living in the city. For example, around one-third of Hamilton residents commute outside of the city for their job, many going into Toronto.
However, in order to be able to commute to work daily, you need to have a car. Unfortunately, they don’t come cheap. Even an older and worn out vehicle can often cost thousands and thousands of dollars, which is money most people simply do not have. Thankfully, car loans help people from all walks of life afford the vehicles and they want and need.
Take a look at this infographic to more information about vehicle financing.
What Type of Vehicle Can You Get With a Car Loan?
So just what types of vehicles can you get with a car loan? Well, the good news is that nothing is off-limits and most car loans can be used to purchase any vehicle your heart desires. There are countless different vehicles you can get, including:
- Electric Vehicles
The actual vehicle you get will also depend on the stock at the dealerships in your city unless you are willing to travel. Of course, just because you can get any car you want with a car loan doesn’t mean you should. You still need to be sure to keep your budget in mind and get a car that you can ultimately afford. If not, you could run the risk of being stuck with an auto loan that you can’t afford to make payments on.
In addition to cost, make sure the car that you get fits your lifestyle or where you live. Someone who drives a ton might want something that is fuel efficient, while someone who needs to transport heavy goods might need something larger. Also, with the unpredictable and harsh weather that we get frequently in Canada, it is a good idea to ensure the vehicle you buy is reliable.
Need a loan to cover the cost of a vehicle repair or maintenance cost? Click here.
Bad Credit Car Loans in Hamilton
While getting a car loan in Hamilton and the rest of Canada shouldn’t be too difficult, this isn’t always the case. Having bad credit or a shaky financial past might make it a bit more difficult to get the same great deals that those with good credit get.
Don’t worry, it’s still possible to get a car loan even with bad credit. While the definition for bad credit can vary from lender to lender, many consider any consumer who has a credit score of less than 600 to have bad credit. If you have bad credit and are in need of a car loan, there are a few things you can do to give yourself a better chance to get approved or get a decent interest rate.
For more information about applying for a car loan when you can bad credit, click here.
Find The Right Lender
The first is to make sure you find the right lender. Some lenders will work with anyone, while others are quite picky and will only work with high-credit individuals. Different lenders will also offer different rates and terms, so take some time to find the right one.
Save For a Down Payment
Next, you should have a large down payment. The larger your down payment, the less risk the lender is taking on. So if your down payment is huge, most lenders won’t mind that your credit is bad as the risk is lower.
While these methods can help you get a car loan despite your bad credit, there are those people out there who would rather increase their credit first before trying to get a car loan. Thankfully, there are many ways you can improve your credit if this is the route you take. These methods include:
- Using credit responsibly
- Paying off your bills on time
- Not constantly applying for more credit
- Checking your credit report for errors
While it won’t happen overnight, these tips (and others like them), can help you increase your credit relatively quickly.
For even more information about credit scores in Canada, check out this infographic.
Vehicle Title Loans
While you know you can use a loan to get a car, did you know that you can also use your car to get a loan? That’s right, a vehicle title loan allows you to put your vehicle title up as collateral to get a better loan. So if you own a vehicle and are in need of some quick cash, consider a vehicle title loan. They are particularly good if you have bad credit or need a larger loan.
For more information about vehicle title loans, check out this article.
Of course, for a vehicle title loan to work, your car needs to have some value to it. If not, a lender is unlikely to accept it as a form of collateral. Also, it is important to be careful when taking out a vehicle title loan. If you default on the loan or are unable to pay it back, you could lose your vehicle. So make sure any title loan agreement you get into is one that you can afford.
The Right Car Loan For You
In need of a good car loan in Hamilton? If so, don’t hesitate to reach out to us at Loans Canada. We are confident we can help you find a car loan that works for you.