The average new car in Canada costs over $50,000 these days.
Even if you’re looking for a used car, you can expect to pay around $30,000. Car ownership can feel like a daunting task when you look at these numbers, especially if you’re someone with bad credit and a low income. The sad truth, however, is that vehicles are a necessary expense for most people.
If you’re feeling lost regarding your ability to purchase a car, it’s important to know that you have options. In this post, we’re going to talk about the benefits of a bad credit auto loan and tell you 3 reasons why you should get one.
A car shouldn’t be off-limits just because you haven’t had the best financial luck. Keep reading and we’ll help you get the right auto loan for your current situation.
1. A Bad Credit Auto Loan Is Easier to Secure
On a practical level, a bad credit auto loan is better than a traditional auto loan because it’s going to be far easier to secure. When you use a lender like Carsfast, you can get approved in a matter of minutes, allowing you to purchase whatever type of vehicle you want from our network of dealers.
In trying to get a traditional auto loan, you’re going to be faced with an uphill battle that ends in multiple rejections. As you receive more and more rejections, they’re indirectly reflected in your credit score, which makes it more difficult to climb out of your bad credit situation.
A bad credit loan is easy to apply for and secures for bad credit borrowers. By exchanging their trust for a higher interest rate, the lender is able to give out better loan terms to people with all types of credit.
Because we work with a wide network of lenders, we can help you make the car financing and purchasing process so much simpler. You don’t have to worry about securing a loan and then finding the right dealership, just look through our network and take several steps out of the process.
Doing things this way is better, both for your credit and your ability to find the right vehicle. Our dealers will know how much you can afford and put you in a vehicle that makes sense for your financial situation, so you won’t ever feel in over your head.
2. A Bad Credit Loan Can Help You Build Credit
Having bad credit often feels like being on a sinking ship without a life preserver. The only way out is to get loans and use credit cards, then pay them off in a timely manner. When you aren’t in the best financial situation, this seems basically impossible.
Most lenders aren’t going to approve you for a loan with favorable terms, so you’re stuck in this bad credit cycle with no way out. What a bad credit car loan really gives you is the opportunity to build toward a brighter financial future.
By getting something as significant as a car loan paid off, you’ll show future lenders that you’re a responsible borrower. With each new loan paid off, you’ll gradually put your poor credit score behind you. Let a bad credit loan be the life preserver you need to rescue your credit score.
3. Bad Credit Car Loans Don’t Haunt You
As a bad credit lender, we understand that our clients aren’t in the best financial position. Our loans are built to help you rather than hinder you, so there aren’t any huge monthly bills or ridiculous down payments.
Instead, we adjust our loans to fit your budget, giving you a higher interest rate over a longer period of time. Because your monthly expenses are kept at a reasonably low number, you’ll have an easier path to paying the loan back.
In this way, bad credit loans won’t haunt you like traditional loans have a way of doing. As we alluded to earlier, building back your credit is a long-term process that requires loans like this to get on stable financial footing.
After a while, you may be able to refinance your loan to get more favorable terms that lower your monthly payments even more. The other benefit of a bad credit car loan is that they don’t last as long, so they don’t haunt you for years and years.
The average length of a bad credit car loan is between 5 and 7 years. Over the course of the loan, the cost of the car is usually spread out evenly so that you’re never paying too much at once. That said, we’ll always work with you to secure the most sensible terms for your situation.
Since you aren’t locked into a bad credit loan for decades, you won’t have to worry about it following you around. Bad credit happens in a variety of ways, affecting nearly a quarter of the Canadian population.
4. Own Your Vehicle
Lastly, a bad credit auto loan allows you to own your own vehicle outright. It can be tempting to lease vehicles when you’re not in a position to purchase a car, but owning your own vehicle gives you a crucial asset.
As soon as you’ve paid off your loan, you own the car. Until then, it’s technically the property of the lender, which protects you more than you might realize. With the vehicle as collateral, there’s never any fear of having to pay out a huge sum of money if you fall into further hard times financially.
Get a Car Loan From Carsfast
Now that you know the reasons why you should seek out a bad credit auto loan, it’s time to tell you where to get it. Carsfast is Canada’s top bad credit auto lender, making it easy for those with poor credit to get a safe vehicle that suits their daily needs.
To apply for your loan, just head over to our website to apply in less than 2 minutes. With over 350,000 approved customers to date, we can help you get your dream car without any of the hassles of traditional auto lending.