Everything There Is to Know About Getting a Vehicle Loan in Regina
October 18 2022
Applying for finance to purchase a car in Regina may be somewhat daunting. Especially if it’s your first time applying for a vehicle loan, don’t fret! You’ve come to the right place. We’ll put all your concerns and questions at ease. Follow our very straightforward guide and get your vehicle loan approved in no time.
1. Determine If You Can Afford It
2. Complete the Application
3. What to Do If Your Application is Denied
Apply for Financing With Bad Credit or No Credit
1. Determine If You Can Afford It
Cars are expensive to buy, but more importantly, they’re expensive to maintain. When you start your search, it’s recommended that you consider the repayment size of your loan and how much it will cost to maintain your new pride and joy.
Look at expected fuel costs. If you’re budget conscious, you may change your search for hybrids to save on fuel costs. Also, consider insurance premiums, maintenance costs, administration fees, parking fees, and service costs. For example, is the model car you intend on buying reliable? Do some research first.
Lastly, lenders have different rates for car loans. Credit bureaus apply a 30-day grace period for rate shoppers. You can apply to as many lenders as possible to see which will give you the best rates.
2. Complete the Application
Once you’ve found your perfect car and checked that you can afford one, you can start the loan application. You can also get a pre-approved loan for used cars and new cars. In both situations, the exact requirements apply.
The next step is to verify your credit score. A score of above 650 is deemed very good. You should be able to qualify for a loan with no hassles if you have a good income and few expenses. In any event, you should have the necessary essential documentation ready to submit as part of your loan application. Basic applications require documents that include proof of the following: identity, residence, car insurance, and income. You’ll also be required to consent to a credit rating check.
3. What to Do If Your Application is Denied
If it’s your first application for financial assistance or if you have bad credit, your credit application will be a tad more challenging. In these cases, the lender will require more documentation.
You may be asked for an employment letter, income tax documents, a comprehensive statement, proof of rental or mortgage payments, and other documentation indicating that you abide by your financial obligations and can afford the loan. If you’re lucky enough to have a friend or a relative with a good credit score who trusts you enough, you can also ask them to co-sign for you. In these cases, you must be 100% sure you can afford the repayments. If you can’t afford the risks, it’s strongly advised that you stay away from this option.
Thankfully, dealerships could offer personalized financial solutions, cash back, guaranteed approvals (despite bad or no credit), and zero down payments on car loan agreements. However, read the small print carefully to ensure you can afford repayments and special terms and conditions before committing.
