Life happens, and sometimes, it can be rough. Kids get sick; you could lose your job; you have an accident or any of the thousands of other things that can cause you set backs.
Just because you have difficulties and setbacks does not mean that you cannot buy a car. In fact, we have specialists who are trained to help you get the credit you need to buy your car, as well as begin to repair your credit for a future vehicle.
Here are some of the circumstances we can help you overcome:
• No Credit
• Slow Pay
These situations are not the end of the world, and with guidance, we can help you get a second chance to get a car.
The first thing you need to do is be prepared to help us get you started.
We will need the following items from you to start your application:
• Pay stubs - Lenders will want you to have at least one year on the job so that the pay stubs will show them your year-to-date income, as well as your hourly or salary rate.
• Proof of residency - Lenders want stability, so they like to see that you have been in your home for at least a year. If you own it, that is even better, but renters are fine, too. You can bring your lease, a copy of your utility bills or any other monthly bill that is mailed to your address.
• Letter of explanation - While we may not need this, we will interview you to find out why you had credit issues, so if you take a few moments to write out what happened, that information can be added to your file. We talk to the lender on your behalf, so the more information you give us, the better we can represent you.
• Down payment - The lender expects you to put a down payment on the note. In most cases, they want anywhere from 10 percent to 20 percent cash down, but if you have a trade-in, you may not need as much cash. The lender wants you to make a vested interest in the note because then you are less likely to default on the loan.
• Realistic expectations - While everyone loves a new car, when you are working on getting your finances back in order and getting back on your feet unless you are putting down a large down payment, your first car loan is going to be modest. That means a modestly priced vehicle and a good down payment. You can always move up in cars once you complete this loan.
Once we have the information we need to assess your credit limits, we will give you an idea of what the banks might be willing to do for you.
We can tell you how much money they will lend you, what monthly payment you can afford and what down payment you might need. All of these affect your debt to income ratio, and even though you might have enough money to afford a payment does not mean that it will fit into the lender's credit criteria. That is why we work very closely with you, the lenders and your sales person to ensure that everything is in line.
Not all cars will fall into your payment range even if the prices are the same, so we can help you find the right year and model. Newer models can be financed longer, so they might fit a payment better than an older car that can only be financed for a shorter term, thus making the payments too high.
There is a possibility that no matter how hard everyone works to get you a lender-approved loan, you may not qualify for the loan. If that happens, we will give you all the information you need to reapply at a later date. Some of the reasons for decline may be too little time on the job, too little down payment, the payments are too high or too little time in the residency. Those are all easy fixes, but they take some time.
No matter what, we want to help you get a second chance to get a car, so gather all of your paperwork and come in and see us.
Charbel Matar is the owner and dealer principal at Drive Thru Finance Ontario. DriveThruFinance provides Canadians facing all types or financial circumstances a simple process to you find the perfect loan for the vehicle you need. By completing our simple online application from the comfort of your home, work or favorite mobile device, you will be able to have access to multiple financing options without ever having to visit a dealership. The whole process will take only a few short minutes and we will only ask you a few simple and easy questions. Apply for your car loan and get approved for our DriveThruFinance program today! Visit us at www.DriveThruFinance.com