Bad Credit Car Loans Ontario

Become an Owner of a New Car Without Any Money Down

We are proud to be the leading bad credit car loans Ontario provider. Anyone can apply and get approved for a new or used vehicle even with terrible credit. More importantly, we don’t require any down payment or cosigner. Just fill out our online application and we will approve you in 24 hours. Apply inside the comforts of your home through your mobile phone or tab. No need for annoying paperwork or endless requirements. That’s how simple our auto loan process works. 

We finance any type of vehicle that you are interested in. Apply now and get approved for a financing plan of up to $40,000. Here at New Car Canada, we believe that ever car buyer deserves a shot to choose the car that they truly want. New Car Canada has tons of car dealership associates in Ontario. If you apply right now, we can immediately connect you to one of our partners and discuss about your car purchase. All approvals are guaranteed. We don’t base our approval on your credit. As long as you have a job that pays $1,800 a month, we will finance any car that you want.

Limiting Your Inquiry

Needless to say, when applying for a car loan, lenders will look at your credit report thus making it an inquiry. There are two types of inquiries namely soft inquiry and hard inquiry. While soft inquiries won’t have any impact on your credit score, hard inquiries can lower your credit. Hard inquiries occur when a lender checks your credit report in order to make a decision whether you are eligible for a loan or not. This includes applying for a car loan, house mortgage and credit card applications. The damage left by a hard inquiry can remain up to two years on your credit report although eventually it will disappear as time goes by.

To lessen the impact of a hard inquiry, it is recommended to limit all car loan inquiries within two weeks. All inquiries within this period will be clumped together thus resulting as a single inquiry. It is very important to shop for rates when applying for an auto loan so as to ascertain and compare the different rates offered by various lending companies. However, you should also do it fast to avoid unnecessary damage to your credit. Doing advance research over the internet can be of great help before applying right away.

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Bad Credit Car Loans Ontario Rates

Guaranteed Instant Approval Here At New Car Canada
Having a hard time getting approved for the car you want? Say no more! New Car Canada is here to help you out. We understand that having a car is something that’s more of a necessity rather than the luxury. But more importantly, we recognize the fact that not everyone has a perfect credit. With that being said, we offer guaranteed approval to all Canadians looking to apply for bad credit car loans Ontario option. Our company works with several reputable car dealerships across the country that can give you affordable financing quotes for any type of car you want. We provide financing options for all vehicles including minivans, pickup trucks, SUVs and used cars. Apply in 1 minute today by filling out our simple online application form and get approved in less than 24 hours. You can use your smartphone or computer to apply.
We also provide pre-approvals for bad credit car loans Ontario option of up to $45,000. Even if you have a history of bankruptcy, unpaid debt collections, consumer proposal loans and the likes, our team of bad credit car loans Ontario experts can help find a financing option that is well within your budget. New Car Canada has the highest acceptance rate for bad credit car loans Ontario applicants – 93 percent approval! In fact, we approve at least a thousand car buyers in Canada every month. When it comes to auto loans, you should not have to compromise. Work with the best, apply at New Car Canada today!

How To Create A Budget
To efficiently create a budget that you can actually pay for, you need to crunch the numbers. So pull out your calculators and let’s get started!
The first step is to pair up your NET (after taxes) monthly income with your essential monthly costs like phone bills, grocery, credit card obligations, student loans, medicine expenses ( if any) and the likes. We emphasized on the word “net” since you would want to base your income right after deductions to taxes, NOT on gross income.
After figuring this out, the next step is what’s really more daunting. You must determine how much money can you afford to pay for a vehicle and how much do you actually WANT to spend for it. These two things are different, especially if you can only get approved for a bad credit car loans Ontario deal with a relatively more expensive interest rate. Others are more than willing to allocate much of their budget to car expenses while some people are more conservative about spending on something that is depreciable. But as a guide, it is ideal to keep your car expenses budget under 20 percent of your net monthly income. This allows more room for other essential stuff or unforeseen emergency events like immediate house repairs and medical bills.
Getting A Bad Credit Car Loans Ontario
If you are figuring out a budget for your car, then it is a given that you are budgeting for an auto loan option as well. For those with outstanding credit, an auto loan option might be a walk in the park for you. But for those who have average or even worse, bad credit score, finding an affordable bad credit car loans Ontario option is certainly a challenge.
While the primary focus is the monthly payment that you will incur, you should not bring this up during your conversation with your dealer. The only time when you are determining a monthly budget is during your own personal time. When dealers know how much you are willing to pay on a monthly basis, chances are they will try to talk you in for a more expensive vehicle placed at the same monthly amortization rate, but with a loan term duration reaching 7 years or 84 months. Financing with a bad credit car loans Ontario at this extended loan term won’t go well for you.
When negotiating rates, focus on lowering the annual percentage rate set at a shorter loan term. In addition, don’t forget to ask your lender if they allow refinancing and if they do, are there any prepayment penalty fees involved. This is important later on if you manage to find an even better bad credit car loans Ontario. Or if your current company experiences downsizing, you can restructure your loan into an extended loan duration to make the monthly payment more affordable. Whatever the case may be, it can affect your situation in several ways.

Talking About Making A Money Down
The lesser amount you want to be financed, the better. Putting that into perspective, you need to save up for a big money down to save yourself from too much interest payments. For car buyers who can only get a bad credit car loans Ontario financing option, saving up for a seriously hefty down payment is a MUST. Even if you are able to get a reasonably priced bad credit car loans Ontario option, the interest costs would still be more expensive than what you would have if you got approved for a prime auto loan rate.
Other than cutting you are losses to interest payments, this would also mean that you own a greater share of the car. Again, this is advantageous because you have positive equity in your asset. If you are planning on a trade in or selling your car, you can easily do so and might even gain a bit of profit for it. Compared to choosing a no down payment bad credit car loans Ontario, you are immediate upside down on your loan from the very start. In simpler terms, you still owe more debt on your vehicle than its actual market value. This is particularly prevalent if you choose a brand new vehicle. Brand new cars immediately lose more or less, 20 percent of their value the moment your drive off from your car dealer’s lot.
At the very least, you should save up for a 20 percent down on your target vehicle. For example, if the car costs $15,000, your down payment should be $3,000 or more to cover for the initial depreciation.

Perils of Pursuing A Car Beyond Your Reach
You never want to get into this kind of situation, stuck with a car that you can’t really pay for. This is even much worse when you are already a bad credit car loans Ontario applicant. Anyone can get easily carried away with a high-end vehicle, upgraded with additional extras. But if you are on a very tight budget, this could lead to missed payments and the dreaded vehicle repossession. With your already damaged credit, this can further lower your credit score. So before inking any car deal, account for every possible expense.

Bad credit car loans Ontario Option

When To Refinance Your Car Loan
If the need for a car is really urgent and you can only get approved for a bad credit car loans Ontario option, don’t fret, you can choose to refinance it later on. With the Canadian auto loan market becoming increasingly competitive, financing options are now relatively more affordable than ever. If you got your option in a rush and was not able to shop diligently for rates, there are a lot of refinancing options available online. A good online site is New Car Canada. Take advantage of their free online application so you’ll know more about their affordable bad credit car loans Ontario options.
The best thing about refinancing a car is that it is quick and easy unlike a house mortgage or debt consolidation of credit card balances. No need for any appraisals, so if you find yourself in either of these situations, you can definitely opt to refinance.

Better Interest Rates Available
As mentioned, if there are lenders offering bad credit car loans Ontario options at lower interest rates, you can avail of them to save money. Even a mere difference of two percent is could save you hundreds of dollars in the long run. Take note however that you will be financing your car with a used car loan option. Do the math and weigh your options before opting to refinance.

Bad credit car loans Ontario Canada

Your Credit Score Has Improved
Credit history is the single largest component in a credit score. So if you have been on time with your payments during your current car auto loan option, it is very likely that your credit score has significantly improved, maybe even good enough to get you a prime rate car loan option. Maybe when you got your bad credit car loans Ontario option, your credit was a real mess that is why you got a high-interest rate. Now that your credit is good enough, you can try to apply for a more favorable car loan option. This is why closely monitoring your credit situation is certainly worth your while. You can readily request a copy of your credit report from the TransUnion, Equifax and Experian.

When Your Finances Has Recently Deteriorated
As what much bad credit car loans Ontario car buyers do, refinancing your loan into a longer loan term duration will enable you to lower the monthly payments involved. So if you have recently encountered a major setback in your finances like getting a new job with lower pay than before or inflated credit card debt, there is still a way for you to make the monthly rate more manageable. While this can indeed cost you more if you crunch the numbers, this is still way much better than just simply settling for a bad credit car loan default.

A word of caution though, a refinancing option is not for everyone. If the car in question is worth less than the remaining balance, it is very unlikely that a lender can help you out. You can use the Canadian Black Book as a reference in determining your car’s current estimated market value.
In addition to that, you must also consult your lender first for any prepayment penalties. With the right documents and accomplished requirements, you can instantly get started on a refinancing option right away given that refinancing bad credit car loans Ontario is typically fast and straightforward. Some lenders can even get you approved as fast as within 24 hours.
Act fast and don’t hesitate to approach your lender/dealer if you are currently having problems in keeping up with your loan. And more importantly, it is crucial that you do so before you are so far behind on your payments. Your lender will definitely try to help you out since they can profit more from a client that has successfully paid their bad credit car loans Ontario rather than on a car repossession.

Why Financing A Car Is More Advantageous
Most people assume that financing a car doesn’t have its own benefits. While you do indeed incur interest when you choose to finance your car purchase, there are situations where financing trumps paying via straight cash. We can even show you why it is still better to choose a car loan even if you can only get approved for a bad credit car loans Ontario option rather than just settle for a cheap and unreliable used vehicle. Let us take them up one by one.

When You Have Good Credit Score
For those who are lucky enough to maintain an excellent credit score, it is almost certain that you can easily get approved for car loans Ontario option set at 2, 3 or 4 percent annual interest rate. If you have that privilege, you must most certainly take advantage of that. With an interest rate that low, it is definitely worth paying for! One of the advantages of choosing to finance is that you are able to keep your hard earned money and invest it on something else, that is not depreciable or depreciating in value. Brand new cars immediately lose approximately 20 percent of their value once you take it away from your dealer’s hands. By choosing to invest your money or pay off other obligations, you are more in control with your financial landscape.
Consider this example: If you pay a total money down of $5,000 on a car worth $30,000, and you got approved for a car loan option that has a (let’s say) 2 percent interest rate set at 3 years. Your principal debt would just be $25,000 and the total interest payments incurred would only be more or less $710. In addition, if you got a chance to invest that $25,000 on something else with a 5 percent annual growth, your loss to interest payments are totally overshadowed by your profits. Better yet, you can use that money to pay off other credit card bills with higher interest rates helping you avoid a bad credit car loans Ontario option.

More Handsome Car On Your Driveway
Cars are generally expensive, whether you fancy a brand new SUV or a used pickup truck, there’s still a lot of zeroes on its price tag. Most people apply for good credit, no credit and bad credit car loan Ontario mainly because they can’t afford to pay straight up cash. And if they can, their options of brand and model would be limited.
Let’s take this situation for example. If you manage to find a great deal for a used sedan, offered at $5,000, you can actually afford to pay that off with your savings. However, you are taking a risk on buying a used vehicle which can either be reliable or not. The cheaper price could backfire and cost you hundreds or even thousands of dollars on frequent car repairs.
Looking at that example, you could have used those $5,000 savings as a down payment for a brand new vehicle. It is definitely more reliable, have the longer lifespan and equipped with the most advanced safety features. Even if you can only get approved for a bad credit car loans Ontario option, having this on your credit history will give you a chance to improve your credit situation and become an owner of a brand new car as well – it’s like hitting two birds with one stone!

It is undeniable that paying cash for a car will save you money on interest payments, but as you can see, there are times when financing a car is much better than paying cash for it. Whatever type of car you pick, it will be your mode of transportation for at least 3 years. So if you have a chance at a great car loan offer for a more durable vehicle, you should not miss out on that.

Talking About A High Annual Percentage Rate (APR)
The lot of us don’t have credit scores that are good enough to qualify for a 2 or 4 percent APR auto loan option. In fact, thousands of Canadians can only get approved for bad credit car loans Ontario options which incur a high APR.
Needless to say, a car loan’s APR is determined based on the applicant’s credit history, credit score, type of vehicle (brand new or pre-owned) and length/duration of the loan. Ultimately the question is, should a high APR prevent you from being a car owner? In a multitude of ways, we can prove to you that the answer is NO.
Even with your situation, you should consider that car dealers are banking on almost any type of credit consumers to land as their clients to keep their businesses afloat. Moreover, with the growing competition amongst auto financing institutions, you can still get approved for a bad credit car loans Ontario option even with bankruptcy, consumer proposals, debt collections or extremely low credit score. In other words, you should shop for rates and talk to your local car dealership. You can ask for rates from multiple loan providers within 2 weeks without incurring too many hard inquiries on your credit. Inquiries made within this period will be considered as a single inquiry.

In the end, if the APR is still too high, you can utilize steps in order to lower the monthly payments. For one, you can opt to extend the duration of your loan so the total debt is spread out hence, a lower monthly rate. Another option is to save up for a big down payment so you will only have to borrow a portion from your lender thus saving a lot of interest payments.
What you should be focusing is how your credit score got damaged in the first place and what are the means for you to improve it. While having that bad credit car loans Ontario, you must ensure that you won’t miss the monthly deadline for it. Making on-time payments is one of the most efficient ways of improving one’s credit score. Also, make sure that you can keep up with other obligations as well. It all boils down to proper credit management. Settle debts with high-interest rates first and slowly go down to other unpaid obligations. This way, you are well on your way to an improved credit score that might just be good enough to get you out of bad credit car loans Ontario and refinance at a prime rate option.

Simple Ways To Lower Your APR
If possible, make the bad credit car loans Ontario term short. Car loans with shorter terms often have lower APRs than extended loan term option.
Making a bigger down payment is ALWAYS better. This gives you equity over your loan and saves you a lot of money on interest payments.
If there is a cash rebate promo, you can ask your dealer to swap it for a lower APR. Maybe they can do something about it.
If you can, get pre-approved directly from a lender and avoid the expensive bad credit car loans Ontario options offered by dealerships. Their offers are typically more expensive because they profit an extra commission for it.
Always shop and hunt for rates, never settle for only a single bad credit car loans Ontario offer.

Avoid These Common Car-Buying Mistakes Now
Buying a car involves a lot of components than one might think. If you want to get the best car deal out there, you need to prepare in advance and do ample research so you’ll have all the data you need to make an informed decision. With that, here are some of the most common car buying mistakes that you must avoid.

Negotiating Without Doing Your Homework
Needless to say, doing something half-heartedly won’t yield good results. A dealer will know if the client really knows his/her stuff or not. During this great internet era, anything can easily be found online. With that being said, there’s no valid excuse for not doing your homework before stepping inside a dealership. Especially if you are a bad credit car loans Ontario applicant, you need to determine the various financing options offered in the market today. If you are looking to obtain a used car, you can use the Canadian Black Book for price reference. On the other hand, if you are looking for something brand new, you can easily check out the vehicle’s retail price directly from the manufacturer’s website.
If you want to get pre-approved for a car loan prior to car shopping, you can do so through online car financing sites. You can find everything you need with just a few minutes in front of your keyboard.

NEEDS before WANTS
Prioritizing your immediate needs rather than the occasional wants is a given. Do you really need to buy that expensive SUV or is it just for the “flash”. Don’t shop based on your occasional needs and wants. When financing a purchase that big, you’d have to think the way in advance if you can sustain the monthly payments involved and its operating costs. If you travel a long distance commute on a daily basis, then looking for a fuel efficient vehicle should be your priority.
In your own time, you can make a needs vs wants list so you can evaluate your situation more carefully. From there, you can make a shortlist of vehicles that are a perfect fit for your lifestyle and general routine. Anyone can get easily tantalized with high-end vehicles, so it’s best if you make a list and commit to it.

Adding Up Non-Essential Upgrades
Some upgrades are worth your money, some don’t. Given that you are on a budget and financing at a subprime bad credit car loans Ontario rate, you must skip all of these unnecessary add-ons. If you add the cost of leather seats, expensive decals and pimping out your vehicle with bigger rims to your financing debt, you will pay more interest in the process. It may seem easy for you to avail of these add-ons since you are not really doing any cash outlay but if you’d look at the numbers using a calculator, you will see how costly it actually is. If you really want to get these add-ons, you can buy them outside your dealership and pay for it with cash. Unless you are comfortable in dealing with huge debt, the goal is to minimize your principal debt as much as possible. Again, determine the features that you must have what you can skip for now.

Rushing Things Up
Cars are essential commodities, so it will always be available. Take your time and avoid rushing any decisions you make. If you have to, you can choose to rent a car while shopping for your next vehicle. Car dealers love car buyers who are in a rush to get behind the wheel of a new car. This gives them more leverage and less negotiating power for the buyer because clients in a hurry are less likely to decline on whatever car deal or financing quote they are presented with.
The main advantage that you have over any dealer is your preparedness to walk out on a ridiculously expensive offer. Even if you are applying for a bad credit car loans Ontario option, you shouldn’t have to commit to an overpriced deal. There are a lot of lending institutions out there that are willing to meet your budget. Take advantage of New Car Canada’s free application and receive affordable financing quotations for cars that you’d want to have. Even with a shaky credit, you are guaranteed a quick and easy bad credit car loans Ontario online approval process.

Ignoring The Original Set Budget
You have done everything you can to shop for the best option. You’ve gotten your bad credit car loans Ontario option all set up, done ample research with the car you are primarily interested in and determined the right budget. But while talking to a car dealer, you’ve suddenly changed your mind and went for a car that is way above your original budget. Worst case scenario, you chose a car you can’t really afford. That being said, you must stay true to your budget. A good way to encourage yourself is to obtain a pre-approval for a specific amount of financing. By doing so, you’d have no choice but to stick to it. This also gives you leverage during the negotiation process. You can ask your car dealer to meet your price or you walk away and find someone who can accommodate you.

Benefits Of Getting Pre-Approved For A Bad Credit Car Loans Ontario
While not the most traditional way of buying a vehicle, making time to shop and obtain a pre-approval for bad credit car loans Ontario option has its perks. With a lender-approved check in your hands, car dealers will see you as a cash buyer and this increases your negotiating power.
Anyone can get easily pre-approved even if a bad credit car loans Ontario option is what you are after. In order to entice you more, here are some of the benefits to a pre-approval.

Enjoy Better Financing Rates
Generally, dealership financing is more expensive particularly their bad credit car loans Ontario options. While getting a loan from them is convenient, you will miss out on better auto loan offers. Car dealerships place at least a 2 percent top up on the original offer. Add them up, this could cost you hundreds of dollars in savings. Shopping for rates and getting it directly from a bad credit car loans Ontario provider gives you an assurance that you are getting the best option out there.
Understanding Good Credit and Bad Credit Car Loans Ontario
When you want to obtain a new or used vehicle through financing, basically you have 2 main options: direct financing (applying directly to a lender} or through dealership financing.

Direct Financing
As its name suggests, you apply directly to a bank, credit union or online site for a bad credit car loans Ontario option. You negotiate for the rate, comply with their requirements and set a loan term duration. When choosing to finance directly with a lender, you have to negotiate with the lender personally and not through a “middle man”. With that, this can be time-consuming on your part if you plan to inquire rates from multiple lenders. The upside is that you can get better rates for good credit and bad credit car loans Ontario offers when you finance directly to a lender since their car loan rates are not marked up. If you choose to get pre-approved before shopping for a vehicle, you also undergo the same process. You benefit from a direct financing because you are able to shop for rates and compare them at your leisure later on. Moreover, you can clearly see the rates involved and all other terms detailed in your financing option. In short, once you are approved, you can concentrate more on bargaining for the price of the vehicle itself and not get confused with financing terms.

Dealership Financing
The second option is through dealership financing. In this method, you can conveniently shop for your next vehicle and get a bad credit car loans Ontario option from your car dealer with ease. Essentially, both methods are the same but what differs among them is that in a dealership financing, it is more convenient and you can get multiple financing quotes from various lending partners by the dealership. Also, you can take advantage of rebates, special programs, and offers which are only offered by dealerships. Some offers involve very low-interest rates or cash back programs which can be attained given some requirements are met. Normally, only applicants with excellent credit are offered these types of special offers. The disadvantage to a dealership financing is that the prices they offer might have been marked up as profit. For example, one of their lending partners offered a 7.5 percent interest rate on their bad credit car loans Ontario option but the dealership is endorsing it at 9.5 percent interest rate. The added 2 percent interest will serve as the dealerships commission for endorsing one of their lending partners bad credit car loans Ontario option. That’s the risk involved when picking a dealership financing.

Whatever mode of financing works out for you, what’s important is that you need to compare rates from multiple sources. Most car buyers make the mistake of immediately settling for the first bad credit car loans Ontario they see in fear that they won’t get approved by other auto loan providers. This is simply not true. Moreover, if your aim is to get the best option possible, you need to patiently shop for various financing options so you know that you are indeed getting the best rate possible.

Points To Ponder Before Buying A Vehicle
Before anything else, you need to review some key points before you decide to finance a vehicle. First off, is you should determine how much you are willing to pay for that vehicle. Given that a financing with a bad credit car loans Ontario is expensive, make sure that you are picking a vehicle that is within your financial capacity. Look ahead and account for other expenses like maintenance, car repairs, insurance policy and other miscellaneous costs. You also need to factor into the equation other existing obligations you have like credit card debt, student loan, utilities and savings for any emergency situations. Remember that cars are depreciable assets so you must not think of it as a good investment. Brand new cars, in particular, depreciate relatively fast for the first two years. With that, you need to save up for a big down payment to gain the majority of ownership for your vehicle and consequently gaining equity over your purchase.
Car buyers who set bad credit car loans Ontario at long-term rates tend to get upside down on their loan because of the depreciating nature of cars and subprime rates. Car expenses can take a huge bulk of your monthly income so you need to make sure that you are getting the car that fulfills your everyday needs, not all flash.

Regardless of your credit situation, finding an auto loan option that is within your budget is faster and easier with the help of New Car Canada. Our company guarantees instant approval for all Canadians whether you have good credit, bad credit or no credit history at all. With hundreds of dealer partners nationwide, we provide financing options to anyone in Canada, wherever they may be. As long as you satisfy our minimum income requirement of $1,800 (before taxes) per month, have full driver’s license and can obtain an auto insurance coverage, your approval is guaranteed. Our pre-approval process takes only minutes and we can present you with affordable financing quotes the next day. We provide options for any type of car you want, brand new or used. Take the first step today and fill out our 1-minute online application form.
Don’t let your past mistakes dictate your future. Take advantage of New Car Canada’s free online application today and learn more about your options with us.

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Ontario

One of the most heavily populated and arguably the most popular province of Canada, Ontario is an aggregate of highly developed  cities particularly the Greater Toronto Area.  Ontario leads the way in terms of manufacturing accounting for more or less 50% of Canada’s manufactured goods.

Moreover, this province is home to various car manufacturing brands such as Chrysler, Honda, Toyota, Ford, and General Motors. Residents and visitors enjoy beautiful natural landscapes and scenery. With how competitive the auto finance market is in Ontario, locking in to a cheap auto loan is easy. Despite their exceptional transport system, owning your own private ride takes away all the hassle and gives you more freedom to explore this amazing province.