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Car buying tips if you were recently divorced

Car buying tips if you were recently divorced

If you were recently divorced and find yourself in need of a new car, being able to secure financing is not as simple as it was when you were married.

Our goal is to show you the steps that must be taken, so you can secure a car loan in Cambridge and get a new lease on life, but you need to stick around until the end of the conversation.

The adverse effects on your credit

Financial strife is one of the leading causes of divorce in Canada; if your finances were in bad shape before the divorce, you could be on the brink of bankruptcy by the time the divorce is settled.

The first item of business is to access your TransUnion and Equifax credit report to find out where you stand.

If your credit score is under 600, you will not qualify for most car financing or credit products.

Those you do qualify for will carry a very high-interest rate, there is a caveat we would like to add, which is you can still access car loans in Cambridge, and we will show you how in a few minutes.

Addressing your credit issues

After you have access to your credit report, look for accounts that are either delinquent or will be delinquent soon. You need to start making payments on these accounts ASAP to bring them up to date.

If money is tight, which it is for most Canadians, you may have to go through your budget again or take on another job to boost your income.

The sooner you can start paying down these debts, the faster your credit score is going to rebound.

How substantial is your income?

Usually, after a divorce, the primary income earner will need to pay maintenance to their former partner plus any child support that the court may order.

This can take a massive chunk out of your income, especially if you need to find a new place to live.

These court orders are difficult to change or have dismissed, so you need to roll up your sleeves and start working additional jobs to earn enough to keep a roof over your head.

To qualify for a car loan in Cambridge, your debts cannot exceed forty percent of your gross pay, so keep that in mind when you are working on your budget.

Where to get a car loan after going through a divorce

The Internet is the last place you should look for a car loan; the deals that are being offered online are intended for borrowers with perfect credit, and even then, those websites aren’t a good option.

What you should do is reach out to a car dealership in your area, one that works with borrowers who have credit issues; they are easy to find. Once you have identified the dealership, head over and start discussing what loan options are available.

You are beginning a new chapter in your life, but you don’t have to face it alone; the dealership will help you get back on your feet by first getting you behind the wheel of a new car.

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

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