Auto financing at the car dealerships in Burnaby BC

Whether you are shopping for a new or used vehicle at any of the car dealerships in Burnaby BC, chances are you are going to want to finance the purchase. Financing isn't always about not having the cash on hand to purchase a car outright. It may be the most responsible way to protect your credit rating.

Financing with less than perfect credit

The car loan industry is one of the few areas of lending that is set up to help those with less than perfect credit. The majority of people with less than perfect credit have come by their low scores due to circumstances beyond their control such as illness, injury, or even loss of employment. While car loans are considered to be big ticket purchase items, the loans aren't nearly as risky as those tied to houses. A lender is more apt to create a loan that can accommodate your credit score so you can buy a vehicle from the car dealerships in Burnaby BC.

Using financing to keep your score up

Even if you have found a car at one of the car dealerships in Burnaby BC such as Marine Chrysler that you can afford to purchase outright, you may want to reconsider that. While no one likes to take on debt, it can sometimes be the best thing for you. Your credit score needs a constant stream of new credit information in order to retain the score you have. If you aren't showing any activity to the report, the score will slowly lower as no credit activity is considered almost as bad as poor credit activity. It may be more advantageous to you to take on a short term loan and pay it off on time to boost your credit score and keep it current than to avoid payments altogether. Car loans count for more on a credit report because they are considered to be "big ticket" items.

Best practices

The best way to go about getting financing at any of the car dealerships in Burnaby BC is to have done your homework about what is required in order to receive financing. Go online and use any of the free auto loan calculators to get an idea of what you can afford and at what rates or terms. Then, gather together 6 months' worth proof of income, bills, and account balances. You are looking for evidence that you can afford a car payment without putting too much strain on your finances. Lenders typically like to see that you have carried a steady balance equal to three car payments in your account for several months. They will also look at your debt to income ratio to determine if your income allows for the additional car payment. This will have more influence on your approval and terms than your credit rating in most cases.