The second-largest purchase of their lives for many Canadians, buying a car is a major investment. Few people can save up enough money to purchase their wheels outright, so they need to finance it through a car loan. That’s why it’s a smart move to explore your auto financing options well before you start vehicle shopping. It is vital to ensure you pick the best option for your needs and budget, not only for today, but for several years ahead.

Where Can I Find Reasonable Auto Financing in Nova Scotia?

Most car buyers sign up for auto financing with a bank, a credit union, a dealership, or an online lender to pay for their new or used vehicles. These car loans must be repaid promptly each month over an agreed length of time. If you miss a couple of payments, you’ll be charged interest and possibly a fine or penalty; once you’re ninety days in default, lenders can generally repossess a car without a court order. However, this is a last-resort step, used only when they truly believe a borrower cannot (or will not) repay the loan. In fact, they would much prefer to renegotiate the terms of the loan and get their money back on schedule.

How Do I Get a Car Loan in the Maritimes?

Everybody is welcome to apply for auto financing, here at Laneway Auto Loans and Sales. We know times can be hard, and almost everyone has to weather financial storms in their personal lives at some point. But Nova Scotian families nevertheless need to get around in comfort and safety every day. That’s why we’re happy to work with buyers of all kinds – good credit, bad credit, and even no credit loans are our specialty. Divorce, bankruptcy, and lost jobs can all be catastrophic events, but we believe in helping people work towards a better future. Years of focusing on people’s needs have honed our skills in structuring personalised auto financing for everyone. Our experienced consultants guide buyers along every step of the path towards getting the wheels they want – while avoiding many pitfalls along the way!

But My Credit Score is Bad – What Now?

Even if you have a bad credit score, you can still qualify for auto financing in Halifax. However, you might be expected to pay higher interest rates to offset your higher risk, and you will probably have to meet some minimum requirements. They could include: 

  • being gainfully employed for at least three months;
  • earning between $1000 and $2,000 a month (with pay stubs);
  • holding a valid driver’s license;
  • having an active bank account.

Naturally, these requirements vary from lender to lender. In fact, some agencies (especially online) even specialise in borrowers with poor credit, meaning scores below 650. These buyers will pay higher interest rates, often starting at around 10% and topping 45% in a few cases. The good news that there are several ways you may be able to lower your interest rate:

  • a newer model means less risk of negative equity for the lender, should you default on your payments;
  • a shorter loan means fewer payments and faster settlement, with less risk of unforeseen events wrecking your budget;
  • fortnightly payments pay down your debt faster than monthly instalments, with proportionately lower risks ;
  • a larger down payment (of 30% or more) might encourage your lender to shave off a few interest points.

Hot Tip: To get the best deal, apply for pre-approved auto financing, and then negotiate a better price for your selected vehicle with your preferred dealer. Learn all about your auto loan!

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