A bad credit situation can be an endless loop of frustrations. Since you cannot qualify for good deals on loans, you end up borrowing even more at atrocious interest rates. These are difficult to pay back and put your further in debt. For more than five decades, we have been working with subprime borrowers, helping them get out of this cycle. We not only provide them with the car they need at a price they can afford but also work with them on credit rebuilding programs.
But juggling financial recovery and financial needs is not easy. You will have to constantly review your choices and make tough decisions to meet your financial goals. If you’re looking for auto loans in Canada, we suggest you read on before making a decision about financing a vehicle.
Do You Really Need a Car?
Commuting without a car can be frustrating. Although there are buses, ferry services, and trains, public transportation is often few and far between. Using these to commute can make you late and often still requires you to do a lot of walking. Renting a car isn’t usually convenient either because you are limited by the conditions set by the rental agency. Plus, frequent rentals could end with you paying a lot more than what you would to get your own a car. If you find you are spending large amounts of money and time getting from place to place, owning your own vehicle could be a solution. Look at your daily activities and the places you frequent. Taking a hard look at these can help you determine if you need a car.
Choosing an Affordable Car
If financial prudence isn’t your strong point, there’s a real danger of buying a car that costs more than what you can afford. If you’re set on a particular model, consider leasing one. The monthly lease is much less than the cost of buying the car outright. Lease payments are typically calculated as a percentage of the difference between the worth of the car when it’s new and the worth of the vehicle at the end of the lease term. Some companies offer the ability to buy a car that’s been returned after a lease. This can be beneficial because you don’t have to pay for the depreciation or worry about ending up with a lemon.
If you’re on a very tight budget, consider buying an older car with high mileage. Buy it from a quality dealer who specializes in bad credit car loans with a reputation for fair business practices. These cars are reliable enough to get you from point A to point B without pulling you deeper into debt. Some of the most reliable car models include those from Honda, Toyota, and Subaru. These brands have a solid reputation for their reliability and can keep running for a long time with proper maintenance. Usually, the older the car, the cheaper it will be, so this could be a solution to help you start climbing out of debt. Also, dealerships often have credit rebuilding programs to help those with bad credit, making it beneficial to work with dealerships to both get a car and start improving your credit.