Bad credit car loans, alberta: 3 tricks to help you save up for a down payment
Posted: May 14, 2018
Having poor credit is obviously enough to put anyone seeking to purchase a new or used vehiclein an awkward situation. This can be even worse if you plan to finance the loan with $0 down.
In a "zero down" situation, you may have no choice but to settle for a very high interest rates, the kind everyone wants to avoid when they are looking for an auto loan in Alberta. That's why many Canadians prefer making a down payment of some sort, no matter how small.
While you have the option to start without a down payment, starting without one usually comes with a hefty price and a greater risk. So unless you want your car loan to come with a ridiculously high interest charge, you should consider saving up a little money to use as a down payment.
By putting down some money, you are reducing not only the overall amount to be financed but also the monthly payment as well as duration of theAlberta car loan. Since you will be borrowing less money when you make a down payment, this will make the lender see that you have disposable income, and will probably approve the loan quicker.
So take it from us, you're always better off putting down a little money for your bad credit car loan in Alberta. There are many dealers and financial institutions around today who look very favourably upon any down payment over 10%.
At Free Auto Credit, we have some partners that are willing to go even below 10%, so no down payment is ever too "small".
But, how can you save for a down payment when you have a bad credit? Below are three tricks we’ve discovered to work.
Start from somewhere
You don’t have to wait till you have the capacity to save $100 a day, before you start saving for a down payment; even a saving of $4 a day is something. All that is required is your commitment and patience, and before long you will have some money you can use towards your next vehicle purchase.
For instance, saving $4 every day for the next 5 months adds up to $600 saved. This translates toa 10% down payment on a $6000.00 vehicle!!
Create a separate saving account for your down payment
When saving for a down payment, we strongly advise creating a separate account for the money. This is really important especially if you plan to save in small amounts for your Alberta car loan.
Failure to separate your down payment from other savings increases the likelihood of spending that money when unexpected expenses arise.
Leaving this account ‘untouched’, you will be surprise don how fast you can save money. Keep a part of what you earn for yourself
In his classic, "The Richest Man in Babylon", George Clason made it clear that the very first step to fattening thy purse is to keep a part of all you earn for yourself. As most of us already know, almost all the money we make is spent paying other people for various things.
By committing to save something out of your income every month, you will always have money available when you need it when applying for an auto loan alberta.
When you eventually save up something tangible, put it into good use by working with a reliable dealer like Free Auto Credit. To get approved for a bad credit car loans alberta, a down payment will definitely go a long way to getting you approved faster. We can help you get the best vehicle that fits into your lifestyle, as well as the best financing terms and interest rates that suit your budget.
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