How Does the Car Loan Approval Process Work?

The wide world of vehicle loans isn’t always easy to navigate. With so many different avenues to explore, different Nova Scotia dealerships, interest rates, and credit scores to consider, it can seem impossible to customers that they can land an affordable rate.

When you are in the process of buying a vehicle, several factors will influence the rates you’ll be approved for. Credit score, credit history and annual income are just a few of the indicators that lenders take into account before deciding the interest rates and payments of a potential car buyer in Nova Scotia. If you’re currently going through the car buying process, you may have heard the words ‘non-prime’ or ‘prime’ being used. Both non-prime and prime are types of lending that refer to a customer’s financial situation and each comes with a set of arrangements lenders will determine once your overall credit report is analyzed.

Decisions made previously can easily affect the choices customers can make tomorrow when applying for a car loan. In Canada, credit scores range from 300 (lowest score, or just getting started) to 900 points (the highest possible score). Canadians average is around 650, which qualifies them for standard loans. Fixing your credit rating may feel insurmountable if your score sits below the average. How do you rebuild credit when you're told over and over that the best way to build your credit is to have revolving credit, which is hard to get with a low score? Automotive loans are a great way to start to get you back on the right track.

For those with higher credit scores, walking into a bank, other financial institution or dealership in pursuit of an auto loan is relatively low-stress. If you're among the high number of Canadians with low or no credit history, it just isn't that simple. You want a decent vehicle with payments you can manage-easier said than done. The good news is, there are lenders who actually specialize in poor credit loans. They help people with bad credit get approved for a vehicle that fits budget and lifestyle needs.

Kentville Toyota is here to help with the financing decisions.

Auto financing isn’t as confusing as it is made out to be and is a common straightforward, and we have an effective way to land an auto loan for those that have credit concerns. We can help you understand the loan market and break down the approval process.

What is a Non-Prime Auto Loan?

A non-prime auto loan is a loan that is offered above prime lending rates. For example, you may not have the greatest credit rating so you have to pay a higher interest rate than those who do. You’re not alone in the non-prime market. In fact, over 25% of car loans are held by specific lenders. We completely understand that just because you have bad credit, doesn’t mean you don’t have the need for personal transportation. That’s where non-prime lending comes into play.

Before you hit the lot looking for your next new or used vehicle, there are a few things to consider. Preparing yourself with information will help you make informed decisions about your auto loan and your vehicle choice. Here are a few things you should consider researching before talking with our financing department.

Do Your Research

Now that you know your budget, let’s take a minute to research what kind of car will work for you. Beyond what style of car, truck or SUV works best for you, you should consider the age of the vehicle and value of your new vehicle.

Put a little time into researching your new investment so you know you’re entering into an affordable loan that works for you. Working with Kentville Toyota is a great way to ensure vehicle quality, private sales could be seen as a little riskier. Those could lead to vehicles that aren’t quality checked by a certified mechanic or using the best quality parts for the vehicle being sold.

Determine your credit score

Before you start your credit application, we recommend you look into your credit score.

One of the biggest perks of working with Kentville Toyota to get an auto loan is that it can actually help you improve your credit. Take a look at your score and get an honest overview of your financial situation. Knowing your credit score means there won’t be any surprises when you fill out your application.

Been turned down by other dealerships? Not to worry
 
Being turned down isn’t the end of your journey. An expert financing department will work to find a lender that works for you and your credit situation. Don’t be shy about asking questions and taking advice about what you need to get approved.

Now you’re ready!

Visit Kentville Toyota and apply for that auto loan - in-person or online. Once you’re approved you can make that important vehicle purchase and drive off the lot. However, it’s important to remember that your journey doesn’t stop at approval. Make sure you make timely payments, in full so you can start rebuilding your credit.

At Kentville Toyota, we have been helping people with credit challenges get into quality vehicles regardless of circumstances for over 10 years. We treat you as part of the Kentville Toyota family and look at people and their individual challenges, not just credit scores.

At Kentville Toyota, we go the extra mile to provide outstanding customer care. We pride ourselves on our commitment to giving back to the community. We have highly experienced business managers on-site that take the time to understand your situation, needs, and reasons for challenges. Our business managers will always ensure we provide alternatives that best suit your lifestyle.

Kentville Toyota is a full-service dealership with an extensive new and used ever-changing inventory. Our large selection allows us to offer many different options and cater to everyone’s needs and budget. We will make sure we find a vehicle for you that you will love driving that fits into your budget.

Kentville Toyota has relationships with all the major banks and lenders. We also have unique and competitive financing options that allows us to custom design financing arrangements based on your individual needs. We will help you get a vehicle with 0 down or as little upfront costs as possible while making sure you get on the right track to improving your credit.

You’re armed with the information you need.

Still, have questions? Our financing department is here to help you through the process. Get in touch with Kentville Toyota today and stop worrying about your credit’s impact on your auto loan.