Automotive Finance Department Kelowna
If you’re looking to secure financing for a car, there are some essential things you should know including how to read your credit score and ways to get the lowest monthly payment possible to meet your budget.
As your number one bad credit dealers in Kelowna, Auto Loan Kelowna is here to help you with all of your credit needs. Whether you need an auto loan for bad credit, want to re-finance your auto loan, or get approved for car credit for the first time, our dedicated staff will help you get on the road.
Feel free to contact us if you have any additional questions, or read below for more information about the auto financing process and your credit score.
How Auto Loan Kelowna Determines if You Are Approved for Car financing
While we can’t guarantee car financing for everyone, Auto Loan Kelowna is able to provide no-credit car loans and auto financing for bad credit in almost all cases. A number of factors determine whether customers are approved for car financing:
- Vehicle selection: the year, price and miles of a vehicle. It’s easer to get financing on a newer vehicle with low kilometers when it has a lower purchase price.
- Application information: History of employment and income. The longer you reside at your residence and the longer you have worked at one place, the better your chance of being approved.
- Credit history: your credit score and other information in your credit report.
- Down payment: The larger your down payment, the better chances of being approved for a good car finance rate.
To secure the best car finance rate, select a vehicle that is within your budget and maximize your down payment. These two factors can increase your likelihood of being approved as well as reduce your monthly payment.
Factors Affecting Your Monthly Payment
Your monthly payment is determined by three major factors listed below in order of impact:
- Total amount financed – the price of the car after considering your trade and any money down.
- Length of contract – the longer the term of the contract, the more affordable the monthly payment.
- Annual Percentage Rate (APR)
Which is Better for Me: Leasing or Financing?
Leasing is another option and offers a lower monthly payment as you are only making payments on a portion of the vehicle. There is a buyout option at the end of a lease in which you can choose to refinance, pay out, or even purchase your vehicle.
At the end of your finance term, your car will be paid off completely. Financing gives you all of the benefits of ownership, including the ability to customize your vehicle with unique accessories and drive an unlimited number of kilometers each year.
What Is your Credit Score and How Is It Calculated?
- Your credit score is a number that generally ranges from 350 to 850.
- Lenders generally view a higher number as lower risk. A higher number is better.
When generating your credit score, credit-reporting agencies take several factors into account. Each element has a varying degree of importance, and examples include:
- Whether you tend to make timely or late payments.
? QUICK TIP: Many creditors look at payment 1 day late the same as 30 days late; moreover, they see 31 days late the same as 60 days late.
- The amount and type of debt you have.
- The number and age of your credit accounts.
- Inquiries created by applying for credit.
- Public records including any liens or judgments.
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