Bad Credit Car Loans in Vancouver Island
At Comox Valley Dodge, we have helped customers with all types of credit get approved for car loans. Whether you have no credit, great credit, bad credit or have even filed for bankruptcy, we are able to help you get the most for your money. We understand that people make credit mistakes and we won’t let that get in the way of you getting a car you love.
Unlike banks or other lending entities, Comox Valley Dodge will work with you to get you a financing rate that’s best for your financial situation. Our auto financial experts ultimately want you to drive away with a vehicle of your choice from our dealership in Courtenay. For decades, we have helped customers in difficult financial situations bring home a truck, SUV or sedan that they love. Be the next in line – apply for pre-approved financing or contact our financial experts today to get started.
What is a Subprime Loan?
Subprime loans (also known as non-prime loans and second-chance lending) are available to those who have poor credit that inhibits them from getting easily approved for regular loans. These types of loans are typically offered at a higher rate than prime rate loans. It’s not as simple to get a loan with conditions that will please you if you have poor credit, but we do our best for those looking for subprime credit loans on Vancouver Island.
Most lenders will turn borrowers with low credit away and refuse to offer any loans due to the risk they perceive. However, a car has become a necessity and everyone deserves a second chance. That’s why, Comox Valley Dodge’s financial experts work so hard to get every customer – regardless of good or bad credit – a loan that they are happy with and can afford.
How to Get Better Car Loans with Bad Credit
Although it’s difficult to get approved just anywhere for a car loan with bad credit, it’s possible to get a decent one with us. We will help you settle on an agreement that makes financing a car with bad credit look easy. Although you’re more likely to pay more the worse your credit is, there are ways to minimize the costs.
There a few considerations that will affect your ability to get a bad credit car loan. These are also aspects that will ultimately weigh into the amount of interest you accumulate. Keep these considerations in mind, take a quick assessment beforehand and let one of our advisors assist you in getting approved for a car loan with bad credit.
- Credit History: Your credit history factors in your credit score, how much debt you have, bills you have to pay and how much income you’re making in relation to that.
Your credit score tells lenders at a quick glance how reliable you are in making future payments. Credit scores range from 300 to 900, which will weigh heavily into the level of interest you’ll receive on your auto loan.
The higher your credit score, the lower your interest rate. Those will the highest credit scores of at least 700 can even receive a zero-percent interest rate.
Credit scores below 500 are the ones deemed “bad credit car loan worthy”. Although having a score lower than 500 can negatively impact your chances of getting approved for an auto loan, most people can get one with an agreement to a high interest rate. Having a score under 500 is not an obstacle for our financial experts, who are determined to get you in the car you want and need. We will work with the credit score you have and consider other factors that can help lower the high starting interest rate you’ll likely receive elsewhere.
Those of you who have dealt with bankruptcy are also not out of luck at Comox Valley Dodge in Courtenay, BC. Although those who have just emerged from bankruptcy have the lowest credit scores, we know there are many circumstances that might have inevitably resulted in this financial situation. We don’t let that inhibit you from taking the steps to move forward from your financial past. Taking out a car loan and paying it off responsibly can help you get back on track by building up your credit score.
- Loan Term: The duration of your payment period will play into the level of interest you pay. Just like with any other interest rate calculation, the longer the loan is unpaid, the more accumulated interest you end up paying.
Typically, any leasing period longer than 60 months will tack on an even greater interest rate. This is because having an extended period of payment creates a higher sense of risk to the lender.
Despite having bad credit for car loans, you have some control in this area in your lease agreement. You should agree to the shortest payment term that is feasible and comfortable for your financial situation and lifestyle. You will ultimately save money for every few months you take off your lease agreement. However, keep in mind that the shorter the term, the higher the principal payments. Our financial services team can help you find the sweet spot between lower interest rates and tolerable monthly principal payments.
- Down Payment: A down payment is the amount you pay off immediately. This amount is taken off your vehicle’s price and never receives any interest. Although it’s not mandatory to make a down payment when you agree to pay off a vehicle over time, it is a smart upfront decision that will benefit you in the long run. Paying a large sum to the lender ensures them that you are dedicated to paying off the car in full and that you have enough discipline to offer up that much money in advance despite your bad credit.
- Current Financial Situation: Other parts of your current and future financial situation take part in the approval and leasing process for a bad credit car loan. Although your credit may be unappealing, it is not the only indicator of your ability to pay off a loan. At Comox Valley Dodge, we work to take every relevant factor into consideration when approving you for a bad credit car loan on Vancouver Island.
Even if you have filed for bankruptcy or have low credit now, we reward those who are obviously taking steps to improve their financial situations. Taking out a car loan is a great place to start. As long as we see that you’re in a stable job and making regular payments to other debts, we don’t solely hold your past against you.
Although these factors should all be considered in full, there are plenty of other aspects that will affect your likelihood of getting approved for a bad credit car loan with Comox Valley Dodge on Vancouver Island. Don’t leave your future up to just anyone; trust your local dealership that’s dedicated to getting you into a car you love. Contact us today to get started!