Financing a Used Car with Bad Credit in Ontario

If you are facing credit problems, whether it's now or in the past, getting a car loan can seem daunting or impossible. There are lenders who offer used car financing for bad credit. Most of these Windsor lenders can be located under certain search terms such as:

• Buy Here Pay Here
• Easy Financing
• In-house Financing
• Bad Credit Lender

Most larger cities have dealerships that provide their own financing. This means that they are financially able to allow consumers to pay them as opposed to going through a third party lender. This eliminates the stringent loan requirements that many FDIC-backed banks and credit unions require for loan approval.

Qualifications

While an in-house lender may be a good option for used financing if you have bad credit, there may still be some qualifications for you to meet prior to approval.

Income guidelines - Part of the approval process for an auto loan with bad credit is to have a solid income source. This could be from your current employer, disability, social security or retirement funds. The more income you can prove that you receive each month, the more loan you will qualify for. Each dealership differs. Some may approve you up to a certain amount or tell you which vehicle you will qualify for in their showroom.

Proof of residence - Showing that you have an established residence or home can help improve your chances of loan approval. Be able to provide payment proof of your last 6 to 12 payments. Utility bills that are in your name may also suffice as proof.

Down payment - Having a decent down payment can really help improve your chances of getting into an auto loan. Bring cash or cashier's check of at least 5 to 10 percent of the vehicle balance. Some dealerships may require more or less of a down payment for example at our dealership you can get a car with $500 down, but a lot of places will not allow that.

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Advantages

There are many advantages to buying a vehicle at an in-house finance company in Ontario. The best advantage for most people is that they generally don't run a credit check. So if your credit has taken a blow from a past bankruptcy or divorce, it shouldn't affect loan approval. Being late on a few credit cards or having collection notices should not affect getting approved as well.

Our dealership has our very own set standard of credit criteria and other qualifications for granting final approval. Having a down payment or trade-in vehicle as well as proof of income can help improve your chance for getting the car you deserve.