All You Need To Know About Car Loans In Vancouver 

March 9th, 2021 by

Avoid Getting Turned Down For A Car Loan in Vancouver


Vancouver is a big city with one of the best public transportation systems in Canada. However, owning your own car is a desire that many B.C residents have! However, not everyone has a padded bank account or a chunk of money lying around to invest in a vehicle.  


That’s where car loans have become a popular choice. New or used car loans in Vancouver, can enable you to be a proud owner of a car without draining all of your money. Thanks to the flexibility of these car loans, you can buy almost any type of vehicle in Vancouver be it a sedan, SUV, sports car, coupe, minivan or truck. While car loans open up many opportunities for financing a car in Vancouver, you should be smart when choosing a suitable loan that fits your needs.


It would help if you kept in mind some crucial facts when deciding to purchase a car in Vancouver. Chief among them is that the Vehicle Sales Authority (VSA) of BC will not regulate private car sales between individuals. The VSA will protect you by the law only if you buy a car through a licensed car dealership. Secondly, to be qualified for a car loan in Vancouver, you must have a valid driver’s license and be employed with a minimum of $1,500 CAD monthly income. When it comes to taxes, you should pay both GST and PST when buying a car from an authorized dealership. On the other hand, if you’re buying a car from a private seller, you will only be charged PST.


Choosing Between A New Or Used Car


Yes, there’s nothing like that new car smell and feeling that goes with it. At the same time, there’s also nothing like paying less than half the price of a new car to buy a used one. Although the debate can go on forever, let’s dig deeper and look at the pros and cons. 


Modern-day vehicles are upgraded with new safety features and advanced technology. At the same time, the BC government is offering attractive rebates on electric or zero-emission cars. Zero percent car financing in Vancouver is being offered by dealerships as they have a quota they need to sell every month and year. Even so, you will need an outstanding credit score as means to qualify for this offer. When it comes to car loans in Vancouver, a new car’s interest rate will be slightly lower than purchasing a used car. 


The reasons for the differences in interest rates are: low credit score holders are less likely to be approved for a new car loan, so they often buy used cars. 


Despite having an interest rate that is approximately 1% higher on used car loans, buying a used car can still save you a considerable amount of money. Used vehicles don’t depreciate as quickly as brand new cars, and insurance rates are relatively low as well. Thanks to these reasons, used car financing in Vancouver can offer you a good deal, and you can even get a better model in used condition with the budget you have to buy a brand-new car. 


Tips to avoid getting turned down for a car loan


Getting approved for any loan is no walk in the park if you lack preparation. Here are some tips and tricks you can use to make the whole process of getting used car loans or new car loans in Vancouver much easier. 


First and foremost, you need to make sure you have all your financial records in order and prepared. Documents such as bank statements, employment letters, records of loans or debts, and tax records are some of the documents you might need to provide to the lenders. 


It would be best if you kept a note of your credit score as well. Understanding your economic status to predict your reliability is essential before negotiation, so lenders give special attention to your credit score. You can also work on improving your credit score by paying off debts and payments before lenders get their hands on it. 


When making your decisions make sure to do your research and make realistic conclusions. Even though you’re interested in a luxury vehicle, you might not actually need one and can find a more modest car for a lower price. Knowing what you need is one of the best ways to improve the chance of getting approved for your car loan in Vancouver


What if you have Bad Credit?


Hundreds of cars are purchased in British Columbia every day, and according to consumer reports, 84.5% of those buyers use loans or financing to pay for their vehicles. Financing a new car with a bad credit score can feel like a significant blow to your plans. But fear not: you can still get around this problem and get approved to buy a car that suits your lifestyle.


If you have a bad credit score that you can’t take care of yourself, you can seek help from trusted parties. If they own an attractive credit score, they can be approved by the lenders on your behalf. But it’s your responsibility to take care of the payments, or they’ll be on the hook for your actions.


The easiest solution for a bad credit score is to go for a bad credit car loan. It would be best if you always remembered that dealers and lenders value your business and most likely will agree on fair terms for both parties. Even subprime borrowers with the lowest credit scores still have affordable bad credit car loans available for them. 


How Can We Help You?


Getting a car loan is easy and fast with Chilliwack Mitsubishi. We carry a professional and trained team who can handle various financial situations and work with both national and local lenders to help you get the loan approval. Especially when it comes to not-so-perfect credit car loans, our Financial Managers have extensive experience to ensure they get you over the fence! 


So, even if you’ve been turned down for a vehicle loan in the past, faced bankruptcy, have no credit, or are just new to Canada, there’s no need to look further. We can start your online application today and get the process rolling immediately! Our team will go the extra mile to make sure we choose the best car loan option for your requirements.

Posted in Car Loans