For people who do not have any established credit, it can be challenging to purchase items with installment based repayment plans. This can be particularly difficult for people who are looking to buy a new or used vehicle.
Auto Financing and Credit
Buying a motor vehicle is considered a significant credit purchase, and often, lenders will not lend to a person that does not have an established credit rating. This can be particularly difficult for people who have never applied for credit and have had little reason to use credit in the past. This can also be a bit problematic for people who are trying to re-establish their credit after bankruptcy or divorce.
Auto Financing Credit Options
The good news is there are vehicle lenders that specifically offer no credit vehicle finance options to people with no credit and special credit financing for people with less than satisfactory credit. In these circumstances, the lender often uses a person’s employment history and the motor vehicle for collateral to secure the loan. While these loans may have a higher interest rate than traditional motor vehicle loans, they are a great opportunity to establish credit for the first time or re-establish credit.
When looking for a vehicle to purchase with this type of financing, it is essential to search for a vehicle that has a warranty. The vehicle make, and model should also have a good reputation for durability and longevity and be checked out by a mechanic before purchasing. Because the vehicle is being financed, it is essential that it is worth the investment and will last for the length of the car loan and beyond.
If you are looking for the best no credit vehicle finance options to purchase a vehicle, at Canada Auto Experts, we offer car buyers the best in Canadian no credit and poor credit auto financing options, and you can learn more about our services at www.canadauto.ca.