USED CAR FINANCING: CAR LOANS AND CREDIT APPLICATION
As part of The Humberview Group, one of Canada's largest and most respected automotive dealer groups, AutoPark has the resources and long-established relationships with automotive lenders to get you car financing at the very best possible interest rate and monthly payment.
Apply for financing today and get the AutoPark Advantage:
- Same Day Approval
- $0 Down Payment (available)
- Consultation with specialists in all types of credit
- Cars with payments to fit any budget
Let our finance experts tailor a car loan to your needs. If you're not sure where to go from here, start by applying online and then meet with us at our Barrie, Toronto, Mississauga, Brampton, Georgetown or Kincardine Ontario location for a personalized credit consultation. We have a range of options if you're looking to secure car financing with bad credit or no credit
Bad Credit Financing Options
Car financing is way too hard. At least, it is if you go to many banks or dealerships with bad credit. AutoPark's answer to your credit challenges is an auto-financing department that's dedicated to getting you the lowest financing rates and best terms in Ontario.
AutoPark is the largest used car dealership network in Ontario. That means we have access to a large network of finance companies that we work closely with. Our finance team will go to bat for you and work with these companies to secure you the best rate that we can.
For the best chances of loan approval at AutoPark, remember the following:
- Pay off as much small debt in your name as possible
- Keep your credit card debt under 50%
- Do not inquire about your credit by applying for other loans if you already did not receive approval
- Always do your best to keep debt to a minimum!
- Credit Can Affect Your Life More Than You May Realize - Borrow Wisely!
After you fill out our online car credit application, we will meet with you to go over your own personal financial needs, open the table to discuss your options, and help you come to a decision on an auto loan that will work best for you in the long run.
Bad Credit Financing FAQ
Will my credit score drop every time I check it?
This myth isn't true. Checking your own credit report is what's known as a "soft inquiry," which does not affect your personal credit score. Only "hard inquiries" made by a creditor or a lender when you apply for a car loan can drop your credit score. These "hard inquiries" can typically bring your score down by 3-5 points.
Will my poor credit history affect me for the rest of my life?
It's not as bad as it may seem. With enough time and patience, all poor-credit situations can be rectified. A credit score is only one small factor that comes into effect throughout the credit approval or car loan process. A short period of financial hardship does not mean you're a bad person. All situations can be turned around, and with the right vehicle selection we can help guide you to always improve your current credit score so that you can enjoy a better future.
I don't understand all of the terms! What do they mean?
Aside from ones credit score, another factor that affects loan approval is the debt service coverage ratio (DSCR). The DSCR is the ratio of cash that the buyer has available to pay their debts against their principle loan amounts. The higher the ratio, the easier it is to obtain a loan, however common lending standards suggest that 30% is an industry benchmark. As an example, if you make $10,000/month and have $3,000 in monthly debt expenses, you may have trouble getting approved for another loan at a preferred interest rate.
Annual Percentage of Rate (APR), Nominal APR, and Effective APR are all descriptions of the annual interest rate, rather than monthly fees and rates; they're the charge of financing expressed as a rate over the year. Effective APR is your fee plus the compounded interest rate, whereas Nominal APR is the simple-interest rate for the year.
How do I restore my credit score?
It is more important now than ever for people to understand the importance of bad credit repair, and attain the skills necessary to survive their bad credit situation. Your credit score can affect you in many different ways, from the type of bank account you can get, to the interest rate that you pay when you take out a loan. Individuals with good credit scores will likely pay interest rates as low as 4%, but those with poor credit scores can pay up to 29%.
The question is, How do the people with bad credit scores get out of those situations? Although these high rates may be discouraging, they can be reduced over time with good planning and timely payments. By not missing your payments, and gaining the trust of your lender, you'll likely be eligible for a lower interest rate within 12 months or less.
How do I get a car loan with a poor credit history?
AutoPark is here to help you reconstruct your credit rating, and ultimately lead you toward a better financial future. Our experienced staff can provide you with the best methods to fix past financial hardships. There are a variety of programs available today that teach you how to properly manage your debt, however AutoPark Loans specializes in actually acquiring the perfect car loan for you, even if you have a poor credit history. We’ve assisted hundreds of individuals in the Barrie, Brampton, Mississauga and surrounding areas, to find the perfect auto loan. Apply today to get approved!
Should I be worried about bad credit?
Many Canadians are struggling to pay their bills on time, and are therefore being penalized with bad credit scores. Although a bad credit rating is never good to have, it is not always as bad as it may seem. The main difference between a regular car loan and a bad credit car loan is the interest rate that the buyer has to pay.
For example, if we take an average interest rate for a good credit car loan of 5.9%, and an average interest rate of 15% for a bad credit car loan, the difference in monthly payments on a 2 year term, $10,000 loan is only $42! If an extra $42/month allows you to own a car so you can get to work and transport your family, then it’s not all that bad. Keep up with these payments for up to 12 months, and you’ll stand a greater chance of rebuilding your credit and lowering your interest amount.
To avoid worsening your poor credit situation, it is important that you do not over apply for loans, and most importantly don’t apply for loans that are beyond your means. When applications are submitted to 5 lenders or more at a time, the banks see this as credit hunting, which is heavily frowned upon. It can be beneficial for you to speak with one of our credit specialists to determine an amount that you’d likely get approved for before you actually apply.
What is negative equity and what do I do about it?
Negative equity occurs when a person takes on a loan for a vehicle and then applies for another vehicle loan before the first one is fully paid off. The remaining amount from the first loan will then get added on to the amount of the second loan; the difference between the two amounts is what’s known as negative equity. This is not usually an issue if it happens once, but if it continues to happen, it may get to the point where the individual will never be able to pay off their total debt.
To prevent situations like this, avoid impulse buying, and purchase reliable vehicles that will stand the test of time. Additionally, ensure that your loans are paid off before you apply for another one; this is easier said than done, but it is a key factor in securing the wellbeing of your financial future.
The AutoPark Difference
AutoPark specializes in providing used car loans people struggling with bad credit. If you have bad credit, been through a bankruptcy, repossession, new job, consumer proposal, divorce and more, it is still possible to obtain a car loan with the help of our helpful team of professionals! Simply complete the secure application process to determine how much you are approved for. We’ll contact you right away and provide you with a selection of vehicles to choose from.
We have the inventory in stock so you can be driving a quality used vehicle in just a few days! Auto loan interest rates are determined according to the current condition of your credit. A score between 300 and 629 is considered special finance. Special finance rates in Ontario will usually fall between 10% and 29.5% depending on your score and present circumstances. Contact us at one of our locations in Mississauga, Toronto, Brampton, Georgetown, Kincardine or Barrie!