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How to Buy a Car with Low Income in Welland

How to Buy a Car with Low Income in Welland

Canadians are feeling the financial strain from the pandemic and runaway inflation. With the costs of food, fuel, and energy rising faster than incomes, how can the average family save enough to buy a car with low income?


Having a car is not a want but a need for most families.


We are working remotely now, but we will need to return to the office. Kids need to go to school and ECAs.


New car prices are just under $50,000, and the average Canadian household owes $1.73 for every $1.00 of income. Everyone is feeling the pinch.


Review your budget


If your car is on its last legs, then you are at the mercy of the market. Hopefully, your current vehicle still has some life left to it.


When was the last time you reviewed your budget?


Now is a great time to take stock of your finances. How much money is coming into your household every month? Prospective lenders will want to know this number, so you should take a few minutes and calculate it now.


The next thing you have to do is start deducting all of your expenses, and once you have subtracted all of the expenses, you will have a balance. This is the amount of money you can put towards a car payment.


If there is not much room left in your budget, you might consider doing a loan consolidation or taking some equity out of your property to pay down debt.


Car loan providers in Welland will not approve a loan that takes your debt-to-income ratio over forty percent.


Reviewing your credit report


If you have a good credit score, it gives you the ability to buy a car with low income at very low-interest rates.


The qualifying credit score required for prime interest rate car loans is 680, but that could change at any time.


You will still be able to buy a car with low income in welland if your credit score falls under 680, but the borrowing costs are going to be substantially higher.


There is no cost to access your credit report and score with Equifax and TransUnion. You just need to pass their identity verification process.


New or used vehicle?


If your budget is tight, you could go with a previously owned car. So long as the warranty is still in effect and you are dealing with a reputable seller, there will be no problems.


While on the topic of sellers, you should work with a local dealership. Some websites will let you buy a car online without ever having to leave your home.


Shopping online is great when purchasing small things, but when buying a car, you must take it for a test drive. In addition, the local dealership will provide you with top-tier customer service after the purchase, which is something you will not receive from online vendors.


Now that you know how to buy a new car while living paycheck to paycheck, you should head over to your local car dealership.


We will use all our skill and experience to deliver the lowest possible Welland auto loan rates, guaranteed. Contact Car Nation Canada Direct to learn how we can help.


We’d love to help you find the perfect car loan. Simply fill in the form below and we’ll get back to you ASAP! 


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