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Bad Credit Auto Loans
Auto Financing Resources
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BAD CREDIT CAR LOANSThe most common ways of financing a car, truck, sport utility vehicle or crossover is with an auto loan or vehicle lease. The loan can be for an extended period of time - some loans can be for as long as 7 years! When you finance a vehicle using a loan, it's very important to understand how the repayment calculations work. In most cases, the loan and amortization period are the same and the loan will be paid down to $0 when the loan term is completed. Sometimes, however, the loan is for a shorter time period, such as 60 months, with an amortization period of 72 months (i.e. it would take 72 months to pay it to $0). This is done to reduce your payments, but you will be left with a balance still owing when the loan is completed that you must have saved up to pay off at that time or be in a position to refinance it. You should make sure you understand your repayment terms before getting into any loan arrangement. DEALER FINANCINGTraditionally, when banks and other automotive finance sources would not finance a customer, dealers would finance them on a "buy here, pay here" basis. This was done in either the form of a loan or lease. If the dealer was not well established, did not have sufficient finance lines and/or wanted to take on less risk, they would primarily offer older vehicles, often with very high kilometres, that cost less and carried less financial risk. There are still many dealers that offer self financing, including Ezee Credit, except that the vehicles and terms offered can differ dramatically. Ezee Credit is very well established with multi-million dollar financing lines. This means we have the ability to provide later model, low-kilometre vehicles that we believe offer you the best value and significantly increase your chances of completing the contract and improving your credit. We think that it also makes the most business sense by putting you in a vehicle you will be happy to drive and pay for.
BAD CREDIT LENDERSIn recent years, there have been a number of lenders in Canada offering bad credit car loans. These lenders generally finance through dealers rather than dealing with the customers directly. While these lenders may appear the same on the surface, there are a number of important differences including:
Every organization also has its own unique approach to assessing a customer’s bad credit. Some lenders focus more on credit scores such as a Beacon Score with limited focus on job stability. Others drill down more into the type and timing of bad credit the customer has experienced, whether that's a bankruptcy, proposal or previous repossession. This credit assessment helps the kind of approval you will qualify for. Ezee Credit has relationships with the bad credit lenders it believes offer the best value, rates and terms for its customers, including financing for newer model, lower-kilometre vehicles that Ezee Credit prefers.
FINANCIAL DISCLOSURERegardless of who you select to finance your vehicle, you are entitled to full disclosure of the loan or lease under the Consumer Protection Act (Ontario). This will include disclosing information on the amount being financed including the rate of interest and the total cost of borrowing. If a dealer does not provide this disclosure to you before you are asked to sign a deal, insist on it. You are entitled to make an informed choice. WHAT LENDER TO CHOOSEWith Ezee Credit’s years of bad credit and lender experience, we can assess your own unique circumstances and credit history. This allows us to target which lender to send your application to with the highest probability of success in achieving your goals on the best possible terms often with $0 down payment. In the end, we try to get you approved on the vehicle you really want with a payment you can afford. Each of the lenders Ezee Credit has selected, as well as our own in-house financing, regularly report to Equifax and/or TransUnion credit reporting agencies which will help to re-establish your credit as you pay for your vehicle. This is not always the case with some lenders or dealers that finance you themselves. Our approach also limits the need to “over shop” your credit by sending your application to multiple lenders. That approach can further damage your credit. BAD CREDIT LOAN CONCERNSSometimes, lenders are willing to make a loan for a term longer than the vehicle will realistically last. This is especially the case where the vehicle is older with higher kilometres or you are an unusually high-kilometre driver. The longer term, or amortization period, results in a lower payment which may be attractive at first. But you could end up paying on a loan long after the vehicle is no longer road worthy. Or worse, defaulting on the loan and worsening your credit rating on a car you can't even drive! With a bad credit lease, the payments are lower than for a loan for the same period of time because you are not required to pay for the anticipated future value of the vehicle when the lease is done. Instead you are typically given the option to purchase the vehicle at the end of the lease or you can decide to get a new vehicle. Ezee Credit offers both bad credit auto loans and bad credit auto leases so you can choose what works best for you.
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 Testimonials
"Ezee Credit helped me 'shop' until I found the ideal vehicle for me. This is my second vehicle and I am really happy with the service and customer care at Ezee Credit." -- Bill H Meet More Satisfied Customers >>     |
