Bad Credit Car Loans Calgary
Refinancing Your Bad Credit Car Loans Calgary
You could have gotten that bad credit car loans Calgary option because you were in dire need of a vehicle. Fortunately, there is still a way out – refinancing option. Refinancing is when you pay off your current bad credit car loans Calgary using a new auto loan option that ideally has a better interest rate involved. More often than not, people refinance in order to save money, particularly on interest payments. However, some refinance their car loan in order to make the monthly payment more manageable. Either way, the aim is to make your entire situation more manageable so that you won’t end up in a car loan repossession. So when should you consider refinancing your bad credit car loans Calgary?
When There Are Better Interest Rates Available
Look out for online bad credit car loans Calgary providers that offer limited promos and discounts. Even if your credit score can only qualify you for a subprime car loan option, you might have gotten your current one without shopping from other lenders or doing proper research. Even a mere difference of 2 or 3 percent is enough to give you hundreds of dollars in savings. Bear in mind though that you will be applying for a used bad credit car loans Calgary rate since the vehicle being financed is not a brand new vehicle.
Your Credit Situation Is Now Better
Your credit score was simply not high enough to get you approved for a prime auto loan rate. But ever since you got your bad credit car loans Calgary option you have been diligently on time with your payments which consequently increased your credit score and is now good enough to qualify you for a better car loan option. This is the perfect time for you to consider refinancing your bad credit car loans Calgary. Several months of being on time with your monthly payments will definitely reflect on your credit report which will entice a lender to give you a better offer than what you currently have. That is why it is very important to monitor your credit score from time to time so that you will not miss out on great opportunities such as this one.
Extending The Term For A Lower Rate
Whether there was a sudden need for cash or you were demoted thus lowering your monthly salary, you can restructure your bad credit car loans Calgary term into a longer duration so that your monthly payment rate will also decrease. More often than not, bad credit car loans Calgary lenders will allow this option because they would profit less from you in an event of a car loan default. With that, they would so much rather extend the loan than leave you hanging. Talk to your lender right away so that you will know what your options are and how are you going to make things more favorable on your part.
To sum it all up, you should consider refinancing your existing bad credit car loans Calgary option when you feel like you are paying too much or getting stuck with overkill interest rates, your credit score just got a whole lot better ever since you got your bad credit car loans Calgary and have access to a bad credit car loans Calgary option that has a lower annual interest rate.
You don’t have to put up with what you got approved for, with an auto loan refinancing option in your arsenal, things can be made more manageable for you.
How To Become A Car Owner Even With Bad Credit
Even with a damaged credit, you can still get approved for financing options that will lead you to become a car owner. However, you need to consider that you will be getting approved for bad credit car loans Calgary that might incur very steep interest rates than what you would have normally gotten. But do not let this discourage you. With the growing competition of Canada’s auto finance market, you can still find reasonably priced bad credit car loans Calgary financing rates. The goal is to make sure that you are not overpaying for or get stuck with an overpriced bad credit car loans Calgary. Let us dig into each step carefully and learn simple tricks on how to get approved the right way.
Credit Report Check
The first question that you should answer is how you got a low credit score in the first place. You would be shocked to know how many people blindly shop for bad credit car loans Calgary without personally checking what is going around in their credit report and the credit issues that can easily be addressed. Although you really have a bad credit score, the point here is that you should not shop around for bad credit car loans Calgary options based on a hunch. If your credit score is low because you have overextended your budget hence fully utilizing your credit ratio or missed a couple of payments, you can make up for these mistakes so that you can still bump up your credit score by a few point right before you apply for any bad credit car loans Calgary provider.
You can easily get a copy of your credit report from either one of the major credit bureaus – Experian, Equifax and TransUnion. Become more intimate with your credit so you will know where you stand and how you can actually improve it.
Correct Any Errors
Another glaring reason for checking credit before looking for bad credit car loans Calgary option is to check for any clerical errors or erroneous data that should not be there in the first place. It is possible that these errors may be responsible for your credit score is that low and if corrected, can boost your credit score by a few points. If possible, file a dispute at least 1 month before you actually start looking for bad credit car loans Calgary options. If you find that your credit score is not that low and is actually just a few points behind for an average rating, delaying your decision to apply for bad credit car loans Calgary options might just be worth it after all.
Looking For A Dealer That Will Work With You
You can start shopping for bad credit car loans Calgary rates in your local car dealership. Even if your credit score falls below 600, car dealerships usually have dozens of bad credit car loans Calgary lending partners that are willing to accommodate you as a client. You can also inquire directly from local banks that are partners with various local car dealerships as well. If you want, you can also shop through bad credit car loans Calgary online providers. Taking advantage of their free services will help you shop from multiple car dealerships much faster and with absolute convenience. You can avail of New Car Canada’s FREE 1-minute online application today to know where you stand. With the fastest online approval process in Canada, getting your bad credit car loans Calgary deal has never been this easy. New Car Canada collaborates with reputable local car dealerships nationwide so we can accommodate anyone in need of a bad credit car loans Calgary, regardless of location.
Opting For A Pre-Approval
For car buyers who have an awful credit, you may need to consider opting for a bad credit car loans Calgary pre-approval. This a good way for them to be much more prepared in the entire car shopping process. Not only that, you have a greater chance of getting approved for a bad credit car loans Calgary that has a favorable annual interest rate. In addition, having a pre-approved auto loan option in your hands will instantly make you a “cash car buyer”. And being a cash car buyer, it is much easier for you to negotiate for a lower price on the vehicle you want. And aside from a smoother negotiation process, submitting all the necessary paperwork in advance and dealing with all the hassle of being a bad credit car loans Calgary car buyer ahead will save you a significant amount of time.
In fact, car buyers who opt to get pre-approved for a bad credit car loan Calgary option can get behind the wheel of the car they want two times faster than the conventional way of financing a vehicle.
Ways To Save Cash On Bad Credit Car Loans Calgary
Even if you can only qualify for a subprime auto loan option, you can use these simple tips in order to cut cost and save money.
Pick A Shorter Bad Credit Car Loans Calgary Term
Even though a lot of Canadian car buyers pick an extended loan term due to the low monthly rate, it is actually much more costly overall. A longer loan term loan would mean a higher cost to interest payments. But by picking a 3-year bad credit car loans Calgary term duration, you will save more on interest payments. Besides, the sooner you pay your loan off, the faster you’ll get equity over your purchase.
Go For A Brand New Car
This might not apply to all situations since each person’s transportation needs may vary but if you want to cut down cost on the interest rate of your bad credit car loans Calgary, financing a brand new vehicle will give you more savings than a pre-owned car. Auto loan options for used vehicles usually have higher interest rates involved. In addition, we all know that when financing a used car, you run the risk of incurring more cost to car repairs causing you to spend more plus all the headaches of driving an unreliable car.
Save Up For A Down Payment
The main thing about new cars is that they depreciate right away the moment you take it off your car dealer’s lot. That being said, you must consider setting aside some of your savings and using it to make a down payment. Having a hefty down payment on your bad credit car loans Calgary option will compensate for the initial depreciation experienced by your brand new vehicle. Moreover, you also gain equity over your vehicle and therefore, you own the majority of your car. So even if you get into a total wreck vehicular accident or got your car stolen, your insurance company is more than enough to cover for the loss. The problem with car buyers opting for a no down payment bad credit car loans Calgary is that they accumulate a lot of negative equity on your vehicle. Which in simpler terms, they are actually paying more for their vehicle than it’s actually worth. So if you aim to save money, placing a big money down is a good way to do so.
Avoid Unnecessary Add-Ons
Add-ons like GPS system and safety car technologies like rear view display camera are worth investing on. But upgrades or extras like paint protection, VIN etching, and decal upgrades are not really essential. With bad credit car loans Calgary being costly enough, it is wise to skip these extras if you are trying to slim down your budget. Having these add-ons on your high-interest auto loan can quickly pile up on your principal debt and therefore increasing your overall interest payments.
How Long Should Your Bad Credit Car Loans Calgary Be
More often than not, people consider applying for a car loan option when the need for a new vehicle arises. Needless to say, you need to consider components like the annual percentage rate and the monthly rate involved which is directly affected by the loan term duration. That being said, we are here to talk more about setting an auto loan term and what is ideal for you.
Car Loan Term Offered
Before anything else, let us take a look at the loan term options typically offered by bad credit car loans Calgary providers. Auto loan terms are structured to be 12 months apart which can last from 2 years to 8 years. So basically, you can choose loan terms of 24 months, 36 months, 48 months, 60 months, 72 months and 84 months. On average, most car buyers acquiring brand new vehicles pick the 60-month loan term duration, while individuals who opt to finance pre-owned cars set their loan terms at 3 years (or 36 months).
Scoping Out Long Term Durations
While negotiating with your bad credit car loans Calgary dealer, it may seem that picking a longer loan term is an advantage and a lot of people are easily tempted to stretch out their loans. Why? Because by spreading out your bad credit car loans Calgary option, the monthly amortization rate is decreased. Because of this, most car buyers are able to afford much more high-end cars. While it may seem favorable to you, it actually isn’t. In fact, extending your bad credit car loans Calgary term spells more car expenses for you.
The problem with extended loan terms is that it comes with increased interest rates. Which means if you calculate the total cost, you actually spend more money than what you would have by picking a shorter loan term. Moving forward, this can lead to an upside down car loan and you will lose money due to negative equity.
Consider this example, you are looking to finance a $28,000 SUV with an interest rate of 3 percent, set at 36 months. The monthly payment of that loan would be $810, which is really a huge figure. But if you look at the total cost of the loan, you would only pay $29,160 for the vehicle, which means your total interest payment equates to just $1,160.
On the other hand, if you choose to finance the same vehicle through a 72-month loan term, the interest rate involved would most likely be doubled (at 6 percent). The monthly rate of that loan would just be $464 (lower by almost half of the previous example) which is relatively affordable. However, if you take a look at the entire cost, your total cash outlay would be $33,408. Therefore, your $28,000 cost you more than $5,000 – NOW that is a HUGE amount.
The Shorter The Loan, The Better
Taking a look at a shorter loan term duration, the problem with this option is the monthly payment involved. Because let’s face it, not everyone has the budget to make room for thousands of dollars on monthly bad credit car loans Calgary expenses. This is the main reason why Canadians choose a longer car loan term even if it means it would mean more costs for them. The upside to a short loan term duration though is that you will obviously be incurring fewer interest payments and you get equity over your purchase FAST. If your aim is to save money, then you should prepare yourself financially and you may have to consider picking a less expensive vehicle.
Looking At The Bigger Picture
Now that you have an idea with regards to the difference between the two, it is time to make a decision. Our advice: Side with what is more financially idea to your situation. If you are in need of a vehicle and is not really concerned about the make or model, you could choose a shorter bad credit car loans Calgary term. You may have to settle for a not-so-high-end car just to make the monthly payment more manageable. Meanwhile, if you are comfortable in taking in that much debt, then you can pick a longer loan term. Just make sure that you balance things out. If you can afford to pay for the rate when set at 60 months, then you should go for it rather than really extending the term to 72 months.
Perils of Long Term Bad Credit Car Loans Calgary Option
It is an undeniable fact that brand cars are very alluring. But as it ages and a new breed of models come into the market, our desire to obtain the latest model grows and that’s when a trade-in deal comes into mind. This is another factor that you must consider before locking into a longer car loan term. The average lifespan of a vehicle is 5 years. Cars older than that won’t really have that huge of an appraisal.
When stuck in that situation, your only choice is to wait until your car loan ends or pay it off earlier. You may have to deal with prepayment penalties and the likes which are an added hassle on your part. In this situation where you are financing a vehicle via bad credit car loans Calgary rate, stretching the car loan term would actually incur more costs. More importantly, you are stuck with the same vehicle for 6 or 7 years. You run the risk of incurring more cost due to car repairs or worse, end up paying for a vehicle which is unsafe and unreliable.
Accumulating Negative Equity
As we have previously discussed, vehicles depreciate over time. Brand new vehicles, in particular, lose more or less 20 percent of their value the moment you take it off your car dealer’s hands. In fact, for the first two years of the bad credit car loans Calgary, most car buyers are underwater on their loan. This means they owe their lender or dealer more than what the car actually costs. Experts call this having negative equity on your loan.
The time it takes for a car owner to get above their bad credit car loans in Canada may vary depending on the purchase price of the car and the amount of down payment involved. While these factors vary depending on the situation, one thing’s for sure: the longer your loan term is, the longer it would take for you to gain positive equity.
Why is build equity on your loan important? Well for starters, if you have no equity over your purchase, you cannot sell your vehicle. Well actually, you can sell it but the amount of money you’ll get out of the sale is not enough to pay for the remaining balance of your bad credit car loans BC. So in times when there is an immediate need for cash, you can’t sell your vehicle for the money. In a case of a sudden job layoff, you are stuck with an obligation that is very expensive.
In another scenario, if you get into an accident and your car is rendered unusable after the incident, your insurance company would only cover for the current appraised value of your vehicle. And given that you are still underwater on your loan, you would still owe your lender money even after the car insurance coverage.
With all these situations being said, you must really consider weighing your options before inking any deal with a lender. Think of financing a vehicle as a long term investment rather than just worrying about the monthly rate involved.
Car Maintenance Tips That You Can Handle
Some of the many beneficial things that new generation of vehicles give us are that they are far more reliable, durable and efficient than their ancestors. Changing of breaker points, spark plugs and condenser are changed less frequently than what we do before. For instance, spark plugs of contemporary vehicles can go 100,000 miles before it actually needs changing. Even chassis, suspensions and transmissions are lubed to last the lifespan of the vehicle. But just like any man made the thing, your car’s lifespan is entirely correlated with how you take care of your vehicle. With regular upkeep and maintenance, you can at least reach your car’s life expectancy. So as a car owner, you must know some of these basic car care/maintenance tips that will help with the longevity of your vehicle.
Regular Checking Of Your Engine Oil
Your car’s engine oil can be likened to the human bodies blood. Monitor your engine oil on a monthly basis and check if the texture is a bit slutty or not. Experts say that you may need to change your engine oil every 3,000 miles, however, with new cars being very efficient and the quality of products increased, you can delay your change oil up to 5,000 miles. If you have the time, you can just change the engine oil by yourself but if not, you can always have your trusted mechanic to do it for you.
Just a few reminders, do not change the oil if the engine is still hot. While driving around to heat the engine oil provides more effective drainage, which is very effective on your part, you must still allow your engine to cool down. Park your car and wait for a few minutes. Moreover, you need to use a jack in order to lift your car so make sure you are very comfortable and safe in doing so.
Monitor Your Tire Pressure Before A Long Distance Trip
Having the appropriate amount of air pressure in your tire does not only promote overall safety but also, it is pivotal in extending the lifespan of your tires. Make use of an accurate tire pressure gauge to regularly check the tire pressure especially before a long distance drive. It is important to do this when the wheel is still at the regular temperature or not hot enough so you can get a more accurate reading. If you don’t know the recommended tire pressure, you can conveniently check the manufacturers recommended air pressure usually on the front seat’s doorjamb, the glove compartment or directly in the manufacturer’s manual.
Also, check your tire’s overall condition. To be specific, you can inspect the rubber of your tire and ensure that the threads left are still evenly thick. If you haven’t replaced your tires for quite some time now and still can’t see any tire wear, this may be a sign of a vehicle alignment issue. That being said, you need to be vigilant when it comes to checking the condition of your tire.
Furthermore, the level of inflation may vary depending on the seasonal or temperature change. You may need to check that the air pressure is suitable with the current temperature. Typically after the winter season, the air pressure might have dropped because of the cold weather and you may want to correct this right away. As previously mentioned, it is recommended to check the tire pressure after it has cooled down since heat causes the air to expand giving you a false reading that the tire pressure is high.
Being diligent in checking your vehicle’s tire pressure promotes safety and fuel consumption efficiency as well.
Check Other Fluids
While most new breed of vehicles have their automatic transmission sealed since it is monitored directly via the car’s system, on vehicles that are not, you can check the transmission dipstick while the engine is warmed up. You may also need to check the power-steering pump dipstick which is usually seen attached to a fluid reservoir cap, and the brake fluid as well.
Especially during the summer season, you may need to check your coolant level as well. Pop open your hood and locate the radiator (if you are unfamiliar what it looks like you can refer to the owner’s handbook). Next, rather than opening the cap right away, you can check the level visually as most radiators are transparent or have partitioning which can easily be seen from the outside. If the liquid is below the “full” line, you can add a 50/50 mix of coolant and water. Some coolants are pre-mixed as well so you just have to check the label to make sure.
Upon the inspection of the coolant, if it appears colorless, rusty or has external debris floating inside, drain your coolant right away and replace it entirely with a new one. Normal coolant is usually green, red, yellow or blue. If the color is unlike what is mentioned, it is a clear indication that it needs replacement. Dirty coolants can damage your car if not replaced as soon as possible.
Your Car Battery
Check the battery’s terminals and cables making sure that there isn’t any sign of corrosion sticking up to it. If your car battery has removable caps, inspect the fluid level regularly especially if you live in a warmer climate.
Why Knowing Your Credit Score Is Important
Needless to say, having a good credit score is important particularly in the auto finance world. In fact, borrowing money is so prevalent nowadays that more than 21 million Canadians own a credit card which means, they have credit reports that show a majority of their financial history. Moving forward, this enables the company or lender to easily evaluate an individual’s creditworthiness or ability to pay back promptly what they owe. Thus when applying for any type of loan, the first thing a lender does is pull your credit report.
Unfortunately, very few Canadians understand what is really going around in their credit scores. More specifically, how a credit score impacts your life as a borrower not pertaining to when applying for an auto loan or house loan. We have outlined three situations for you in hopes that you will understand why knowing your credit score is imperative.
You Can Get Denied A Job
Based on previous reports, it has shown that approximately 60 percent of employers check an applicant’s credit score before finalizing any hiring decision, especially if you are applying in a finance-related job. In this scenario, your poor credit score prevented you from getting a job that you badly needed.
It Can Affect Your Living Arrangement
If you are currently looking for a place to live or an apartment for rent, you should know that some landlords or rental companies do a credit check on you for income verification. Having a low credit score may lessen your chance of getting approved.
Expensive Car Insurance Premium
A lot of factors are taken into account by auto insurance companies and one of them is your credit score. They use a person’s credit score to ascertain whether or not that particular applicant is a risk or not. And if you are perceived as a greater liability, they might charge you as much as twice than the regular insurance rate. To add, many insurance companies look at an applicant’s credit score when determining a rate since there is a correlation with it having increased claims.
As you can see, being intimate with your credit score does not only apply for when you are looking to obtain a financing option. By being aware of your current credit situation, you can employ the necessary steps in order to address any issue or take immediate measures which can help in boosting up your credit score. You can easily request for a copy of your credit score in the TransUnion, Equifax or Experian.
Car Safety Extras That Are Totally Worth It
Car buyers have the right to be a bit frugal when considering optional add-ons to your vehicle. But if you find that there is still a few hundred dollars remaining on your budget, investing on car safety upgrades should be your priority. So if you are considering purchasing a few add-ons on your brand new ride, here are some car safety upgrades that will give you a bang for your buck.
This add-on is self-explanatory. Having a clear view of your rear when backing up significantly reduces the odds of a car crash when reversing. As most drivers would agree, there are many blind spots when reversing and relying mainly on your side mirrors may not be enough especially when in the tightest places. Rear cameras or backup cameras are particularly helpful when parking in the parallel orientation. Overall, purchasing this safety add-on will make reversing easier and safer.
Blind Spot Monitoring System
Each type of vehicle has their own blind spot and it can be difficult for drivers to see whether or not a vehicle is in its blind spot zone. As a remedy, manufacturers have developed a blind spot monitoring system which alerts the driver every time another car is within the vehicle’s blind spot area. A side mirror sensor or light will prompt the driver, making him or her aware that a vehicle is present.
This also comes in handy during times when you need to switch or change lanes. Again, it warns you ahead of time when you come too close to a vehicle as you try to switch lanes. All in all, this safety feature would again minimize car collisions, especially when driving in high-speed highways.
This safety feature is helpful in a way that it scans the area in front of you and instantly calculates the distance between you and the car in front of you. This alerts you when you get too close with the vehicle in front of you. Forward Collision systems are usually attached in the interior part of the vehicle, specifically on your vehicle’s mirror. Aside from monitoring the front region’s distance, it also recognizes speed limits automatically alerting the driver helping you avoid stressful speeding tickets. As you can see, this safety feature will give you enhanced safety and absolute peace of mind.
Ultimately, having these safety features on your vehicle does not only promote road safety but also it may lower your auto insurance premium as well. The type of car you have is also one of the main components used by insurance companies when determining a premium. Beyond that, you cannot afford to compromise when it comes to vehicle safety. Driving with a peace of mind is something that you can’t put a price on.
If you are currently looking to get financing for a new vehicle, make sure to check out New Car Canada’s financing offers. Our guaranteed approval makes it easier for car buyers with bad credit get the car they want, at a price they can afford. Take advantage of our free online application today to learn more about our financing services. Being a car owner is fast and easy with New Car Canada.