Credit Buying a Car With Bad The Complete Guide to

[Pages:19]The Complete Guide to Buying a Car With Bad Credit

Created By Legacy Auto Credit

Table Of Contents

Introduction Chapter 1: Know What To Expect Chapter 2: Understanding Your Credit Chapter 3: Know What You Can Afford Chapter 4: Find a Reliable Dealer Chapter 5: The Importance of Pre-Approval Chapter 6: Must Know Tips Working With Legacy Auto Credit

The Complete Guide to Buying a Car with Bad Credit

Introduction

Allow us to introduce ourselves.

Legacy Auto Credit was created to allow everyone an equal opportunity to drive a safe and reliable vehicle. We believe that credit concerns shouldn't keep you from driving and we work hard to treat each customer with care and consideration. Legacy Auto Credit is a part of a group that includes Guelph Toyota, Walkerton Toyota, Goderich Hyundai and KW Mitsubishi, if there's a vehicle you want, we can help you find it.

At Legacy Auto Credit, we've made it our mission to make buying a vehicle easy and hassle-free, regardless of your credit situation. Just because a person has bad credit, shouldn't mean they deserve a different experience when shopping for a reliable vehicle

Why did we write this guide?

For some people it can be very difficult to get leasing or financing when buying a vehicle. Buying a car is a daunting task, but that task becomes even more challenging and confusing for those who have `less than perfect credit'. It is estimated that around 30% of Canadians would have what is considered `bad credit' and for those people, buying a car often means facing rejection, sky-high interest rates, or shopping with non-trustworthy auto dealers.

The Complete Guide to Buying a Car with Bad Credit

Who is this guide for?

You'll find this information valuable if you are currently shopping or thinking of shopping for a vehicle and you have less than perfect credit for one or more of the following reasons:

? Bad credit history ? No credit history ? Slow, late, or missed payments ? Past or current bankruptcy ? New to Canada ? Repossession ? Divorce ? Low income ? Orderly Payment of Debt ? Poor credit due to unexpected events

Poor credit is not ideal, but don't assume it's the end of the road when you're looking to buy a car. Understanding how to get an auto loan with bad credit is your first step and this guide will serve as a valuable resource for you on your vehicle shopping journey.

How much should I read?

We've created this guide to be as easy and simple to understand as possible. Whether you read the entire guide from start to finish, or you just read a specific chapter, you're definitely going to be more informed.

The Complete Guide to Buying a Car with Bad Credit

Chapter 1 : Know What To Expect

Before you look for a new vehicle, especially if you find yourself with less than perfect credit, make sure your expectations are realistic. Knowing what to expect is particularly important when looking to buy a new vehicle with anything less than perfect credit.

The Process Will Be Slightly Different

When shopping for a vehicle with less than perfect credit, you should expect the process to be slightly different than if you were shopping with perfect credit. This could mean that your application process will be a little more in-depth, or you may need to get pre-approved before picking your vehicle. These processes are normal and reputable dealer will walk you through the entire process before hand, so you know exactly what to expect.

You Will Be Asked About Your Credit

Be prepared to answer questions about your credit and financial history. This can sometimes be an intimidating proposition for some folks, but it shouldn't be -- the dealer is just looking to get an idea of your current financial situation to ensure the loan you get won't jeopardize your credit/financial situation. While your credit score and financial history are important factors, there are other factors as well. If you've lived in your current home for a long period of time, that shows stability. Likewise, if you have a steady job and can show a stable employment history, you'll likely be seen as less of a risk. References can also play a role. A list of people who can verify that you're responsible and likely to pay your debts can also lead to an extension of credit with better terms.

The Complete Guide to Buying a Car with Bad Credit

Chapter 1 : Know What To Expect

Interest Rates Will Be Higher

If you have less than perfect credit, your interest rates will be higher than if you had perfect credit. You're probably not going to get the 0 percent financing that's offered on the TV commercials you see all the time. At the same time, you shouldn't be worried about paying a crazy-high interest rate -- the interest rates on vehicle loans at Legacy Auto Credit can be market competitive and similar to what you'd find at a bank.

You Might Not Drive Away In

Your Dream Vehicle Right Away

From our experience here at Legacy Auto Credit we have come to believe that it is a key to successfully getting approved for an auto loan, particularly if you have bad credit. The monthly payment for a fully loaded truck is much more than the payment on a compact sedan and nobody wants to get into a vehicle and take on a vehicle loan they can't afford. Our goal is to help you establish a solid payment history, then help you refinance to better terms when your credit score improves ? something that's likely to happen as you make those car payments on time.

The Complete Guide to Buying a Car with Bad Credit

Chapter 2: Understanding Your Credit

When you're shopping for a new vehicle, checking and understanding your credit is probably the last thing you want to do, especially if you have had credit challenges in the past. The thought of going through your credit details may be intimidating and something you'd rather avoid. Whether your credit is good or bad, understanding your credit situation is important when looking for a new vehicle. If you understand where you're at with regard to your credit, you'll be able to make more informed decisions when applying for your car loan. Quite often customers come to us with little to no insight into their credit situation, which is okay, but we want to make sure that as we are working with you, we are informing you and helping you understand your situation. Signing off on a car loan without understanding your credit situation could be disastrous for you in the long run.

Here is some useful information for you to easily, painlessly, and quickly get an idea of where your credit and financial history is at.

The Complete Guide to Buying a Car with Bad Credit

Chapter 2: Understanding Your Credit

Check your credit reports

Checking your credit reports with the major credit bureaus enables you to see any errors or inaccuracies and actually might help you improve your credit score. The decision processes used by auto lenders are based in part on credit scores, which take into account a consumer's credit experiences, compiled in credit reports.

You can get copies of your credit report by mail. There are two national credit bureaus in Canada: Equifax Canada and TransUnion Canada. You should check with both bureaus. In order to get your credit bureau for free, you send in your identification along with some other basic information and then your reports will come back in two to three weeks. For TransUnion, and Equifax the instructions to get a free credit report by mail are available just click the logo below. If you can't wait for a free report by mail, you can always get an instant credit report online. TransUnion charges $14.95. Equifax's rate is $15.50, but both are great and rather cost effective ways to get an understanding of your credit situation. At Legacy Auto Credit, we will walk you through your credit history and tell you your credit score, but what we find is when clients come into those meetings, even with just a basic understanding of their situation, it relieves a lot of the anxiety associated with actually coming in and meeting with our team.

The Complete Guide to Buying a Car with Bad Credit

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