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How to get a car loan if you are seasonally employed in Canada

How to get a car loan if you are seasonally employed in Canada

The pandemic has taken a dramatic toll on the economy, forcing Canadians to take seasonal jobs to make ends meet. If you are seasonally employed and need a car loan, there are options available but you need to follow our tips to make the right decision.

Those tips are courtesy of our Binbrook car loans team who have a lot of experience in helping customers save money.

Not all seasonal work is created equally

When prospective auto loan providers in Binbrook are assessing your application, the first question they need to address is whether you are going to be able to repay the loan.

Since you are a seasonal worker, the nature of your work is something to take into consideration. If you are working in the hospitality industry which was hit hard by the pandemic, the lender may be reluctant to approve the loan until after the pandemic.

If you are working in the fishing industry, there is a very strong possibility that you will be working when the season opens back up. This is not to say you should not apply for an auto loan if you are in an industry that was impacted by the pandemic, some lenders can help you.

Having a good credit score

A good credit score is paramount when you are seasonally employed but want to buy a new car. If your credit score is over 680, it shows that you are good at managing your financial obligations and should be able to in the future.

Even if your credit score is under 680, you can get a car loan in Binbrook but you will need some expert help. There are dealerships in your area that can help you buy a new car, you will need to contact them to get the ball rolling.

Aside from your credit score, the dealership will need a copy of your income tax notice of assessments for the last couple of years. The lender will need to get a sense of how much money you receive yearly and average it out. You do not have to worry about these calculations, the dealership and lender will sort those out.

Fixing your credit

If you have significant credit challenges, the dealership will help craft a plan on the steps you should take to get your score as high as possible. You should look on your credit report for any missed or overdue payments, it can happen where you forgot to make a payment and that negatively impacts your credit score.

It could take several months before your credit score bounces back but you need a new car today. Should you find yourself in that situation, your dealership may be able to help you secure an auto loan, the interest rate is going to be higher because of your low credit score.

What most Canadians do in this situation is to refinance the car loan once their credit score has risen to a high enough level. Since you know how to get a car loan when seasonally employed, you can reach out to the dealership now and schedule a test drive. The sooner you follow the tips provided by the dealership, the more money you will be saving.

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

Categories: Auto Loan

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