Can You Get Approved for Subprime Auto Financing

When bad credit strikes, most people in Windsor, ON think that it is the end of their time getting approved for any kind of loan; especially auto loans. This, however, is not the truth, thanks in part to subprime auto financing. Subprime auto financing is a type of financing that does not rely solely on credit history but it takes into consideration other factors such as:

• Time on the job
• Type of vehicle
• Current monthly income
• Debt to income ratio

When all of these factors are taken into consideration, it is much easier to get financing for the vehicle you want as opposed to when it is simply your past credit problems doing the talking. Subprime financing is basically a fancy term for second chance car loans, where you can get the second chance that everybody deserves.

Misconceptions about Subprime Lending

Subprime lending has had some misconceptions in the past but these are just misconceptions. For instance, many think that subprime lending will take what they can as far as interest rates go; basically price gouging the consumer with their high APR. The fact is that the government mandates all interest rates so that the lender cannot set their APR to what they want, instead, it is what the government mandates. The fact is that when the lender jacks up the APR, it is less likely that the buyer will be able to afford the vehicle, thus, reducing the chance of the vehicle going back to the dealer. Ontario Cars On Credit guarantees that we will not price gouge you and will have the goal of getting you into a vehicle that you can afford comfortably.

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Basic Requirements For Subprime Loans

As with any loan, there are some basic requirements for most subprime loans through OntarioCarsOnCredit.com for auto loans. While the subprime market does not look so much at credit history, it does look at where you are at currently with your finances. For instance, you should have some sort of verifiable income. The amount varies but we tend to keep it around $1400 per month for applicants through our dealership. Now, this income can be from a variety of sources including employment, retirement or social security; just as long as it can be verified. Sources like child support and unemployment however; often do not count as verifiable sources of income.

Just when you think that there is no more hope to get the financing you need, here comes the subprime lender to save the day. With this type of second chance auto finance, you will be able to get the vehicle you want with an interest rate that you will be able to afford with ease. The main goal of subprime lending is to ensure that you get the chance you need so that you will be able to get financing again in the future.