Finding a Car with Bad Credit in Prince Edward Island
Finding a new car can be difficult at the best of times. Having bad credit when purchasing one can make things even harder. When you're looking for bad credit car financing in Prince Edward Island, come to Loan Doctor first. Borrowing money is not something that should be taken lightly, and we are here to ensure that you get the ideal terms for your car loan regardless of your past credit history. We specialize in helping those with poor credit, and we have a variety of used cars available for you to choose from. We want to help you get back on the road without a car payment that cripples your budget. Come to Loan Doctor to learn more about how we can help you obtain a car loan. To begin the process, please fill out our online credit application.
Bankruptcy And Car Loans Can Be Compatible
Bankruptcy is becoming increasingly commonplace. You may find that this previously taboo topic is becoming unavoidable at cocktail parties or work functions. This is because bankruptcy filings are increasing steadily, doubling in amount from 1980 to 2005. You may think that bankruptcy will prohibit you from ever taking out a loan again. However, bankruptcy and car loans are becoming more compatible than ever before.
If you have a car loan in Prince Edward Island and are facing filing for bankruptcy, you have several options to consider. You don't always have to surrender the vehicle over to the lender immediately. Many lenders are willing to work with you and help you keep your car. The first place to start is to reaffirm your current loan. About seventy percent of car lenders will make you sign a reaffirmation agreement that meets court approval. This will let you keep your car as long as you continue making payments regularly and on time. If your lender falls into the remaining thirty percent, they will not require you to provide them with a reaffirmation agreement. Instead, you can continue making payments as usual.
Not all lenders are lenient when it comes to bankruptcy and car loans. If your lender refuses to help you keep your car and make payments in one way or another, then you can try taking out the car loan with a new lender. Unfortunately, this option is only available to people who purchased the car within days of filing for bankruptcy. Most likely, you will need to negotiate face to face with the dealer and the lender to agree upon a value that they are comfortable funding the deal for.
If you are unable to keep your car after filing for bankruptcy, don't be discouraged. This may be the perfect opportunity to break out that dusty road bike in the garage and take it for a spin. Although bankruptcy and car loans may be difficult to navigate around, the increased number of bankruptcies being filed may work in your favour.
The Time To Buy A Car Is Now
Interest rates for auto loans in Prince Edward Island have been extremely low lately and are expected to stay low for awhile yet. Nevertheless, our global economy is always changing and we cannot always predict what the future will bring. If you are in the market for a new car, or are thinking of purchasing one in the near future, it might be best to apply now for car financing.
You can find great rates for both new and used cars from many of the large banks, as well as credit unions and other reputable lenders. Term conditions can range from as little as 36 months, to as long as 84 months. Typically, the longer you extend the life of the loan, the higher your APR will be, but generally there isn't a substantial difference in the rate amounts.
If you are on the fence about whether or not to apply now for car financing, things are looking bright at the moment, and this could be a great opportunity for you to get the car you want at a great price.
Car financing for bad credit in Prince Edward Island
There are many factors which, can help you get the loan which best suits you. The starting point is your credit rating. Get a copy of your current credit score and examine it in detail. If there are any errors in it, get them corrected immediately.
Also look at ways you can improve your credit rating like reducing or paying off any long outstanding loans or just reducing your debts as a whole. The fact that you are in a stable condition and have been living in the same place for a year is an important factor for the potential lender. The same applies to your job. If you have recently changed it, wait for at least 6 months before applying for a vehicle loan. And remember that anything you do to improve your credit score will not appear overnight. Start planning and acting at least a month before you apply for a vehicle loan.
While it is tempting to find the car of your dreams and then look for financing, the better way is to find out the trade in value of your old car which you will use for the down payment and amount of loan you are eligible for. Once you have your budget, shop around for a car you can realistically afford.
Next you need to look at the term of the vehicle loan. Do you need a 60 month loan so you will be paying lower monthly installments? Alternatively you can go in for a shorter loan duration of, say, 36 months where the installments are higher but the total interest is less? Remember that having a newer car at the end of the vehicle loan period will give you a higher trade in value if you want to buy a new car straight away. Loan Doctor is proud to serve Prince Edward Island from Charlottetown to Summerside.