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How to buy a car after going through a divorce in Hamilton

How to buy a car after going through a divorce in Hamilton

If you recently went through a divorce and need to buy a car, you are in the right place.

Our Hamilton car loans team are going to show you everything you need to know, so you can come out of the other end on top.

While no one wants to talk about divorce, roughly one out of every two marriages will go through it at some point in their relationship.

Taking stock of your finances

Your finances will take a substantial hit after a divorce, especially if you were the primary breadwinner in the relationship.

The court may have ordered that you pay child support plus alimony to your former spouse.

These maintenance payments must be paid out before any of your personal living expenses are taken into consideration; essentially, you are being forced to pay for two households on a single income, which presents a unique set of challenges.

One of the leading causes of divorce is financial strife; you must take a look at your credit report by going to both TransUnion and Equifax.

We understand that this is a painful time, but you must do this in order to get a sense of what you are up against.

When you have access to your credit report, note which of your accounts are past due. These accounts must be brought current as soon as possible.

No lender is going to approve a new car loan if you have accounts that are delinquent.

Budgeting for your new vehicle

After you have reviewed your credit report for accounts that are past due, you can start working on your budget.

The average car payment in Canada is around $500 per month, but with gas, maintenance, and insurance, you should plan on spending around $1,000.

If your budget is tight at the moment, you can start looking for ways to trim excess spending. One way is by cutting out expenses like cable television; most people watch TV via the Internet and are cutting the cord when it comes to cable.

This could easily save you a few hundred dollars a month. Along with saving money, you should consider looking for ways to boost your income by taking on a second job.

These side hustles are a great way to augment your income while keeping you busy as you adapt to this new normal.

Where to find a car loan in Hamilton after divorce

The Internet is a great place to do your research, but you should work with a local dealership when it actually comes time to secure a car loan in Hamilton.

These dealerships have vast experience working with individuals like you who have gone through a divorce and will know how to structure the car loan so you get the most preferential treatment. The dealership also has credit experts in-house that can show you what steps you should take to raise your credit score so one to two years from now, you will qualify for the best credit products in Canada.

Buying a new car after divorce is a major milestone as you embark on this new journey in your life; you are not alone; reach out to your local dealership today for help.

If you need help or advice on anything to do with auto loans in Hamilton, contact Car Nation Canada today, we can help!

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