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How to get approved for an electric car loan when you have no credit

How to get approved for an electric car loan when you have no credit

If you have no credit and need to buy a car, there are some steps you will need to take in order to get the car you want on terms you can afford.

Why don’t you have a credit score?

Are you a new immigrant to Canada or just graduated from school?

Everyone in Canada uses credit to some degree and so coming across a person who doesn’t have any credit score at all is rare.

If you have bad credit, that is another story, but for the remainder of this conversation, we will focus on what to do if you have no credit score.

It starts with a single trade line

You need to sign up for a secured credit card or credit builder program being offered by Koho. These secured tradelines will report to TransUnion and Equifax.

When you use these facilities and pay them as agreed, your credit score is going to start climbing.

To get access to the best car loans and financing in general, your credit score should be over 700. It may take a few months or a year before your credit score reaches 700, but it will be worth it when you look at the money you save.

Budgeting for the purchase of a new electric car

Prior to the pandemic, you could get approved for an electric car loan with zero percent interest, but those days are passed.

When you take out a car loan, you must repay the loan with interest, but that is just one line item; there are additional costs that come with owning the car like parking, maintenance, and insurance.

All of these costs add up and will eat into your budget.

Since carbon taxes are influencing gas prices, you definitely should think about switching to an EV.

Electricity prices are more predictable, and you won’t be gouged at the pump every time you need to refuel.

In addition, while range anxiety was a legitimate issue in the past, the latest generation of EVs can provide a range similar to what you would get from a gas-powered vehicle.

Where to get a car loan when you have no credit

While we talked about the variables that go into buying a car, we need to steer your attention to where you can get approved for a car loan without having credit.

The Internet is not the place you should be looking; your best bet is with the help of a dealership in your area.

Look for dealerships that provide financing to drivers with credit issues; you don’t have bad credit, so that works in your favor, but only a local dealership can identify which lenders will offer you a competitive deal.

Since we covered the steps you need to take when trying to get a car loan with no credit, the last thing you need to do is head on over to the local dealership and meet with their in-house experts.

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

Categories: EV motoring