Ken Knapp Ford Official Blog
FAQ on Credit challenges when purchasing a vehicle
By jfawler | Posted in Uncategorized on Friday, April 22nd, 2022 at 7:41 pmWorried about credit? Don’t be!
Matt answers some frequently asked questions about credit challenges and purchasing a vehicle. You can read or watch Matt answer the questions.
1) What is the best approach to take if I have credit challenges and I’m looking to purchase a vehicle?
It is always best to be upfront about one’s credit. At this time, I can have you sit down with my financial services manager and they can submit a pre-approval to let you know where you stand. By submitting a pre-approval to the bank we will find out which interest rate you will qualify for, how much a month the bank will advance you for a car loan, as well as how long you will be able to finance a vehicle. With this information, we can choose a vehicle that fits your needs, the approval, and your budget.
2) Can I trade my vehicle if I have a high-interest auto loan?
You can definitely trade in your vehicle when you have a high-interest auto loan. The good news is that you will likely qualify for a lower interest rate as long as you have had good payment history on your current auto loan. We will take your vehicle on trade and pay off your current loan getting you into the newer vehicle you want.
3) Can I get an auto loan when I have filed bankruptcy and entered into a consumer proposal?
A lot of people believe that they are not able to get into a loan after filing bankruptcy or when they are in a consumer proposal. We are still able to help you. Sometimes the bank will require some information from your trustee in order to proceed. Entering into an auto loan will help rebuild your credit while satisfying your needs for a newer vehicle.
4) What if I have no credit, can I still get a loan?
We can get you approved if you have no credit. Now you might need someone that can co-sign for you. This will allow you to get a lower interest rate while allowing you to build your credit at the same time.
