Are you in dire need of a vehicle but don’t have the required money down in order to get approved for an affordable car financing? Worry not! There are still a lot of auto loan lenders in Canada that provides auto financing even without having to make a down payment. You just have to pick the right lender and financing option for you.
New Car Canada offers a diverse variety of auto financing for anyone who needs it. We even offer financing for those with bad credit, no credit, and/or any record of serious credit issues such as bankruptcy or vehicle repossession. And to top all that, we don’t require any down payment or cosigner.
In order for you to get the right car that you deserve without the all the hassle of money down or long processing time, here are effective tips that you should consider.
Looking at your Credit Report
The fact is, a good credit score can open a lot of options for you when it comes to financing. Regardless of what type of loan you are planning to get (i.e. house, car, etc.), with a solid credit, you can avail of the best deals currently laid out for potential prime borrowers. If you are fortunate enough to have an exceptional credit score, for instance 700 or more, you can even get auto financing for a very low to none, interest rate option. Having said that, there would be no problem securing, not only an approval but also a car loan that is affordable without needing a money down. If you’re not familiar with your credit score, request a copy from either one of these credit agencies: Equifax, TransUnion, and Experian.
If possible, Get a Cosigner
Having someone willing to co-finance the car loan with you is indeed a game changer. With a cosigner that has an impressive credit, you can easily get approved for an auto loan despite without a down payment. Moreover, if you have a poor credit, a cosigner will compensate for your lack of credit and will get you a car loan that has a low-interest rate. But bear in mind, your cosigner is responsible in continuing the payments in an event that you, as a primary borrower, can’t keep up with the agreed monthly payments. So always be a responsible borrower, you don’t want to burden your cosigner with an investment that was your plan in the first place.
Choose an Affordable Vehicle
This factor is very important especially when you decide not to pay a down payment for your car. The reality is, if you don’t place a down payment, you are actually incurring a huge amount of debt since you want your lender to finance 100 percent of the purchase price of the vehicle. To add, even at a reasonable interest rate, with no money down on your loan, you will gain negative equity for a longer period of time due to the piling up of interest payments. That is why it is important to settle for a vehicle that is just enough to satisfy your vehicular needs. Moreover, you don’t just consider the purchase price of the car but also its maintenance demands. Buying a car is different from owning a car. In some cases, car buyers who are easily talked into buying flashy cars, end up either buying another vehicle that is more economical or trading it in for a more practical variety. Weigh your options first before committing to any investment.
As with any type of investment, it is always recommended to shop around and do your own canvassing of prices. Auto loan lenders’ rates vary, as with their requirements. Some traditional lenders require more paperwork for individuals who are applying for a no down payment auto loan. However, there are online auto loan financing that doesn’t need stressful requirements in order to get you approved. For instance, New Car Canada offers guaranteed approval for any type of car financing. Furthermore, you can get an approval in more or less 24 hours upon submission. Another great thing is that the requirements are very simple, if you are regularly earning +$1,800 per month and have a valid driver’s license, your application is good as approved the moment you click the “apply now” button.
Nowadays, auto loan lenders offer very reasonable rates due to the increasing competition between auto loan providers in Canada. However, New Car Canada stands out because we have the fastest online car loan processing in the country and the most affordable car loan options. We have more than 5,000 vehicles in our showroom, which you can freely browse, and we are partners with a handful of excellent car dealerships in Canada. Just fill out our very easy online application form and get approved for financing in less than 24 hours without having to pay a single dollar as a down payment.
We provide free service in 8 provinces, Ontario, Nova Scotia, New Brunswick, PEI, New Foundland, Manitoba, Saskatchewan, and British Columbia. We service everyone from Toronto, Ottawa, London, Hamilton, Mississauga, North Bay, Thunder Bay, Sudbury, Sault Ste. Marie, Barrie, Oshawa, Brampton, Kitchener, St. Catharine’s, Niagara Falls, Belleville, Windsor, Bracebridge, Gravenhurst, Collingwood, Orillia, Peterborough, Nepean, Cornwall, Kingston, St. Johns, Saint. John, Moncton, Winnipeg, Brandon, Red Deer, Calgary, Edmonton, Saskatoon, Regina, Kamloops, Victoria, Surrey, Kelowna, Vernon, Prince George, Nanaimo, Fort McMurray, Banff, Moose Jaw, Prince Albert, Swift Current and the rest of Canada. Our dealer network is one of the largest in Canada and always provides free finance to own quotes.