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What is Subprime Car Financing in Brantford and how it Works

What is Subprime Car Financing in Brantford and how it Works

The subprime market is worth billions, not only in Canada but south of the border too. If you have credit issues or income that is difficult to verify, then it will help you understand how subprime financing in Brantford works and where you can get the best deal.

 

Stigma linked to the word “subprime”

 

There is a stigma associated with the word “subprime”, it can be linked to the 2008 economic downturn that caught the world off-guard.

 

While the subprime mortgages that were issued was a catalyst for the economic crisis, it was not the only reason why the economy took a downward spiral.

 

In reality, anyone of us could be classified as subprime because there is no standardized definition.

 

When dealing with financing, each lender sets their own lending criteria and anyone who does not fall into that criteria is labeled as subprime.

 

How Subprime Car Financing in Brantford works

 

You will need a credit score to get a subprime car financing Brantford. If your credit score is under 620, you would most likely fall into subprime car loan territory.

 

These loans charge a higher interest rate, so you may not be able to buy a brand new car.

 

The good news is you can buy a great used car and refinance the subprime car loan to a prime interest rate car loan in 12-24 months, depending on how long it takes to rebuild your credit.

 

Income verification process

 

We covered the role your credit score plays in subprime loans, so our focus needs to shift to your income. If you are bringing in a significant amount of money, lenders are more willing to do business with you.

 

The income needs to be substantial and must be verifiable. Before Covid-19 was a household name, lenders didn’t worry much about verifying your income but that is no longer the case.

 

You must show your latest pay slip if you are employed. Individuals who are self-employed must provide their latest income tax assessments and bank account statements.

 

All of these steps may seem like a major pain in the backside, but if you have these documents, you should be able to buy a newer vehicle.

 

How to find the best subprime lenders

 

If you go with the wrong lender, it could end up costing you a huge sum of money! The easiest way to access subprime lenders is by going to a local car dealership.

 

These dealerships have established relationships with all of the subprime lenders throughout Canada. When you go through a local car dealership, they will be able to help advise you on how to repair your credit.

 

We all need a car to live a normal life in Canada. There is a chronic shortage of new and used cars in Canada, you need to head over to your local dealership today and get a car.

 

If you continue to wait, you could be priced out of the market completely and unable to get any car!

 

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.

 

For any questions or concerns, please don't hesitate to contact us here! 

 

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Categories: Auto Loan

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