Can You Still Get an Auto Loan after a Consumer Proposal?
This is a difficult situation to be in, and your options can be very limited, but you do not have to give up all hope, as there are still options available if you can meet the criteria of the lenders out there.
Firstly, you probably already know that most bad credit lending companies regard a consumer proposal as the same as a bankruptcy car loans, so you will need to do some searching to find those that will still lend. Give us a call to know all your options. The criteria may be stricter than normal, and you will need to make careful decisions in regard to meeting those criteria, in regards to: how much down payment you can make, what type of car you need, and how well you have been able to keep up with your normal bill payments since filing the consumer proposal.
Keeping up with your bills since the consumer proposal
As you will understand, it is crucial that you have been keeping up with your bills since the consumer proposal, so you are effectively building up your bad credit credit score. Lenders might want a down-payment from you, however it is not always the case. You will probably not be able to buy a luxury car, but you will definitely will drive a vehicle that fits your needs.
Secondly, if you are able to meet these criterias, there may be more specific requirements for each different lender. Some requirements are:
Proof of Income
Usually you should be in your current job for three or more months and earn $1800 per month minimum. Other sources of income, such as government support might also be accepted.
Ontario Driver’s license
You should have a valid Ontario driver’s license. Lenders know that customers usually are more likely to pay back their loans if they can legally drive.
The lender wants to be able to take the used car loan payment out of your bank account each month. The easiest way to do this is to get a void cheque or stamped pre-authorized payment form.
Rebuilding Your Credit with a Consumer Proposal Car Loan
Once you are in a position to meet the new criteria for getting a car loan, you can use it to rebuild your low credit rating. After twelve months of trouble-free payments on the loan, more lenders will again become available to you. You will have options for lower monthly payments and interest rates. At this point you need to assess the costs of staying in the current loan, against the cost of refinancing somewhere new, or possibly selling the vehicle, repaying the loan, and starting with a different vehicle with lower payments.
For help in matching a suitable vehicle with the available financing contact us.