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Car Loans For Young Drivers In Acton - Buyers Guide

Car Loans For Young Drivers In Acton - Buyers Guide

To all the excited young drivers who are finally ready to hit the road, firstly, congratulations! It’s a rite of passage that most Canadians go through and opens up the entire country for exploration and adventure. Secondly, you’re going to want to start thinking about a car. Car loans for young drivers may seem daunting at times, that’s where our Acton auto loan team comes in.


The entire aim of this blog is to provide the information young drivers need to make informed decisions about buying a car. That includes newly qualified drivers.


So, when you’re planning to buy your car, bear these three things in mind when it comes to car loans for young drivers.


Young Drivers need to be 18 to apply for finance


You can drive from age 16 with a G1 licence and need just a year of experience to qualify for G2. But you need to be 18 or over to apply for a car loan.


It’s the same for any form of debt, credit cards, personal loans, mortgages and for car loans in Acton. So, while you may be excited to get on the road, your first car is either going to have to be bought with cash or you’ll have to wait a year.


You’ll need to build your credit score right away


As soon as you hit 18, you should begin building your credit score immediately. We appreciate you have a lot going on and perhaps little spare cash for financial planning but it can make a huge difference to your life going forward.


Your credit score will influence the interest rate you pay on any car loan. It can also influence what types of credit card you’ll get when you’re older, whether you can rent a particular property or even get a particular job.


More employers are checking credit scores than ever before so a little forward planning can really help!


Just use a basic credit card to help build your score. Use it for regular expenses and repay it in full every month. That way you’re not spending what you cannot afford and you’re avoiding the worst of the interest charges.


Consider a co-signer auto loan


If you cannot wait to apply for an auto loan and have yet to build much of a credit score, consider using a co-signer once you turn 18. This is where someone else comes in and guarantees the loan for you.


If you repay the loan in full, the co-signer won’t need to do anything. If you miss a payment or default on the loan, the co-signer will be legally responsible for repaying it.


You will need someone you trust and who trusts you, but they are a viable way of accessing lower interest rate auto loans when you’re building your credit score.


That co-signer will need to have a good credit score and be able to theoretically afford the loan should you miss payments. They also need to trust you enough to guarantee that loan!


New drivers have more opportunities than ever before to get on the road. You have more finance options than previous generations and more cars to choose from. It’s a great time to be a new driver!


When you want an auto loan, contact our team who will be only too happy to help.


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


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Categories: Auto Loan

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