Many factors determine your bad credit auto loan or lease rate...You should be informed of all the financial details before signing.

FINDING THE LOWEST RATE

Ezee Credit works hard trying to get you the lowest rate of interest for your bad credit auto loan or lease. We understand the many factors that go into determining the rate(s) available for you. Let's take a closer look at rates and what's best for you.

Rates obviously vary from lender to lender. Interest rates can even vary from month to month depending upon how busy lenders are and their recent delinquency or default rates. The rates available also depend on the cost of funding for the lenders. That is, the rate at which they can borrow money in the marketplace. These rates also vary over time.

Of course, the "lowest rate" is also not always the "best deal". The vehicle you select, including its condition, kilometres, price and warranty coverage, are also critical in determining whether you will be pleased with your next vehicle loan or lease. So interest rates shouldn't be looked at in isolation when making a vehicle decision.

INTEREST RATE AND LOAN FACTORS

The main factors that influence the interest rate you will qualify for include:

• Your past credit history and credit score
• Your job and residence stability
• The model year of the vehicle you select
• The term of the loan or lease

These factors, combined with other considerations, such as your debt service ratio, will also influence your monthly payments and the value of the vehicle you may be approved for. It makes sense to do a credit self assessment before you begin looking for a bad credit vehicle loan.

STRENGTHEN YOUR APPLICATION

One way to strengthen your application, and to be approved at a better interest rate, is with a co-applicant. Co-signers who will be using the vehicle, even if they aren't the primary driver (e.g. spouses or partners), are best suited as co-signers. That's because they have an interest in the vehicle and/or the household income that will be available to pay for it. Sometimes, spouses and partners who don't even drive will still add value to an application if they have any sources of income to improve your household debt service ratio.

The next best co-signers are usually significant people in your life, depending upon their circumstances. Family members, and especially parents, are viewed as more likely to come through for you if you experience a problem paying for the vehicle.

Co-signers, such as friends or acquaintances, even if they have very good credit, are not viewed by lenders as adding much,if any, value to your application. This is because they are not the primary driver or part of your family unit. As such, lenders are skeptical whether an "acquaintance" will really be inclined to pay for the vehicle if you were to default. This is sometimes referred to as "straw man" or third party financing.

WHAT YOU ARE ENTITLED TO KNOW

The Consumer Protection Act (Ontario) provides disclosure guidelines for your protection. These guidelines help ensure you know the terms of the lease or loan you are entering into and help prevent you from being taken advantage of when obtaining a bad credit auto loan or bad credit auto lease.

The Act requires that before you are obligated to purchase or lease a vehicle, you must have disclosed to you in writing a number of items, including:

1. The annual percentage rate of interest
2. The loan or lease finance charge (total cost of financing)
3. The implicit finance charge (including all items that may be viewed as interest)
4. The total loan or lease cost

If you are not provided with this information when you are asked to sign a loan or lease, you have rights under the Consumer Protection Act. These rights may assist you in not proceeding with the transaction or limiting the amounts you may be required to pay. The Ontario Motor Vehicle Industry Council can assist you in better understanding your rights.

THE EZEE CREDIT APPROACH

With so many lenders and variables, Ezee Credit can't realistically tell you what your lowest bad credit rate will be up front. We will, however, have a fairly good idea what rate you will qualify for once we have analyzed your application. We will also have a better idea whether a lender, or in house financing, would be the best option for your situation.

Ezee Credit has been successful in both situations, whether it's working with lenders, or approving in-house financing. We enjoy this high rate of success - and customer satisfaction - by taking the time to understand the causes of your credit difficulties and how your circumstances have changed to improve your future credit profile. We can offer, or negotiate, better rates on your behalf by using our expertise and this focused approach.  That's why we say we are more interested in your future than your past.

And rest assured that the rate of interest, cost of financing and other important financing considerations will all be outlined for you in writing, so you can decide what's best for you, before you are asked to sign any agreements.

That's why so many of our customers end up being repeat customers!