When you live in a relatively large city like London, sometimes it’s difficult and time-consuming to get around. Sure public transit and biking are becoming more popular, but they can take a much longer time than most people want to spend. As a result, most London residents still resort to driving. In fact, over 85% of commuters in London get to work in a vehicle as the driver or passenger.
However, getting a car and maintaining it can be expensive. It can easily cost you thousands of dollars to buy a car and then hundreds to keep it in good condition. Most people simply don’t have that much money sitting in their accounts to be spent. Because of this, most people rely on car loans to gain access to the money they need to purchase a vehicle.
Check out this infographic for everything you need to know about auto financing.
What Vehicles Qualify?
The great news about a car loan from most providers is that you can essentially get any vehicle you want. Your choices will include a ton of different options, including:
- Electric cars
Keep in mind that the actual car you are able to purchase depends on the variety of stock in your town or city unless you want to travel to a neighbouring city to buy a car. Of course, even though the sky is the limit when it comes to the types of vehicles you can purchase with a car loan, it’s in your best interest to have a budget and stick to it. Taking on more debt for unnecessary things like a specific car colour is, unfortunately, a great way to create debt problems.
The car you ultimately choose to get should also be one that meets your needs. Sure, it should look good and be visually appealing, but if it doesn’t meet your basic needs, it won’t have a lot of value. If you have a large family, consider something like a van or an SUV. If you do a lot of driving, perhaps a car with good fuel efficiency is the way to go to ensure you save money. Also, being that the weather in London and the rest of Canada can be a little all over the place, it is a good idea to ensure the car that you get is also reliable.
How to Get a Car Loan With Bad Credit in London?
While you might think having bad credit will disqualify you from getting a car loan, this actually isn’t the case. Sure, some lenders may be unwilling to work with you, but there are plenty of lenders out there in most cities that are happy to work with low credit individuals. While it can differ from place to place, generally anything under a 600 credit score will qualify as bad credit.
However, while these lenders are willing to work with those who have bad credit, it isn’t always easy to get one of these loans. Thankfully, there are several steps you can take to improve your chances of being approved for a loan even though you have bad credit. The first thing to do is to save up a large down payment. The bigger the down payment, the less risk you pose to the lender. A large down payment will often allow a lender to overlook the fact that you might not have the best credit.
Next, you want to make sure that you take time to find the right lender. Some will have different deals and options for bad credit individuals, and you want to find the one that works the best for your needs. So while you can indeed get a car loan with bad credit in London and really anywhere else in Canada, some people might want to wait until their credit improves to get a more affordable and standard car loan. The choice is yours.
Did you know that bad credit can affect your daily life? Learn more here.
Vehicle Title Loans
While most people will need to borrow money to purchase a car, you can also use the car you own to borrow money. If you are in need of money and own your vehicle, you can get what’s called a vehicle title loan. This can be a great way to gain access to larger loans when your credit might not be the best.
These loans are secured against your vehicle and the amount you can get will depend on your lender as well as how much value the vehicle has. While it can be risky, if you feel you can afford to pay off the loan, it can definitely save you a good amount of interest in most cases. Of course, because your car is being used as collateral, you need to make sure to make all the loan payments on time. If not, and you default, the lender could take possession of your car to cover the cost of your loan.
A Car Loan That Works For You
Looking to purchase a new or used vehicle and aren’ sure where to look for the right financing to meet your needs? If so, look no further than Loans Canada. We will be able to get you set up with a great car loan provider in your local area.