Toronto Auto Consulting

Bad credit and no car? How to shop for a car?

Let’s face it, a lot of people have struggled at one time or another to pay their bills on time. Once you fall behind, some have even been unable to pay their bills. Both scenarios have repercussions for your ability to buy a new car. The consequences of these situations will mean a lower credit score. But this doesn’t mean that you can’t finance a new or used car.

Who is going to finance your car when you have a lower credit score? Lending institutions, which comprise the main banks.

  • Toronto-Dominion Bank.
  • Royal Bank of Canada.
  • Bank of Nova Scotia.
  • Bank of Montreal.
  • Desjardins Group.
  • National Bank of Canada.
  • HSBC Bank Canada.

Then there are secondary lending institutions which specialize in auto lending with lower credit scores. Most of these companies have working relationships with dealers, and some of these sell and finance mostly used cars directly to you.

Finally, most car manufacturers have their own finance subsidiaries set up to offer auto loans for their brands. Most of these Captive financing companies have excellent programs for people with lower credit scores.

Before you go shopping, you need to settle a couple items to make your experience an easier process. Find out what is your credit score by ordering a report. Is it as bad as you think, or is it worse? You might be surprised, either way it’s beneficial to know your score.

Ordering your credit report and score

canada.ca/en/financial-consumer-agency/services/credit-reports-score/order-credit-report.html

This government of Canada website give you the details on your credit report and how you can get a free credit report.

With your credit report in hand, you will see your credit score. How much, realistically, can you pay after deducting your monthly expenses. Be sensible because the banks will be doing the same calculations. You may even be able to get approved with bad credit for a car loan.

With this information, carefully consider what car you ought to consider and then start your shopping online. Once you pick out the car, you can then contact the dealer. Make sure you are upfront with your credit score, it may be helpful to provide them with a copy of your report. You should also provide them with a copy of your last pay stub, which will confirm your income.

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