New Credit or No Credit Car Loan in Toronto, Ontario (GTA)
If you have recently moved to Toronto, Ontario (GTA) or otherwise have no credit but need a car, you are most likely going to have a hard time getting financed. New credit or no credit consumers often have several questions regarding obtaining a car loan and Good Fellow Auto is here to help.
Can I Get A Car Loan With New Credit or No Credit?
The short answer is yes, if you have new credit or no credit, you can get a car loan, but the process will be different from those who have an existing credit history.
When you have new credit, your auto loan may limit you to looking for choices that are affordable rather than an expensive model that is above your current means.
Another auto financing option for people with no credit or new credit is to have a friend or family member on the loan as a co-signer. This allows someone with an established credit history to vouch for your reliability which may get you a better rate. The downside is that if for any reason you can make your payments, they will be held finically responsible.
What Should You Do Before You Apply For A Car Loan with New Credit?
To make your car financing approval process much easier, you should save at least 20% of the cost to offer as a down payment for your car. This shows the lender that you are committed to paying for your car and it will also get you a lower interest rate and payment on your car loan.
You should also make sure that you bring proof of employment when you arrive to apply for a car loan. Showing that you have a source of income will help you to secure a new credit or no credit auto loan.
If you pay any form of monthly bills, bring those receipts with you. Showing proof of regular payments goes a long way towards proving to the lender that you are a trustworthy credit risk. In many cases, if you have no credit, your past history of bill payment may be the only thing that a lender has to use to decide if they will extend you a line of credit to purchase a car.
How Good Fellows Auto Can Help
If you have new credit or no credit and need help securing an auto loan, we are happy to help. One of our friendly advisors are standing by to answer your questions to help you be as prepared as possible. There is no obligation to use our services when you call our helpline, and if you do decide to make use of our auto financing services, we may be able to qualify you for a car loan on the spot. We have helped many clients in Toronto with new credit or no credit obtain car loans, and we are here to help you too, give us a call today to find out how.