Car Finance for Low Income Earners â€“ in Canada at Affordable Rates
The process involved in car finance for low income earners is a little different from the other types of financing options. Therefore, if your earning is low and you need to finance a car, you would do well to learn more about the specialized dealers that deal in car loans for low income earners and the requirements. Remember, car financing for low income earners may need you to have a certain minimum credit score, duration of employment, and monthly income. Your debt-to-income ratio, amount towards down payment, and the type of car you wish to buy, play a big role in getting your loan approved. In addition, car loans for low income earners have much more paperwork involved. However, in the end it will all be fruitful when you can buy the much needed means of transport. Getting a car loan with no credit history and low income will limit your options. You may be able to select only from cars that fall in a defined price range. If you choose to buy a used car, you may need to buy it below the wholesale value, as per the Kelley Blue Book or NADA. As it is, you have to limit your choices to be able to meet your monthly expenditure while repaying your auto loan. This is because the guidelines are strict when it comes to the amount you can afford to pay each month. Some dealers offering car loans for low income earners may not have the cars that fit the price range limit. Others, dealing in subprime credit loans, may have tiers, which refers to the credit categories. These tiers differ from each other basis the amount of down payment, interest rates, price of the car, and other terms and conditions. This is usually the most difficult part of car financing for low income earners and once you qualify for a certain tier, you may get instant auto loan approval. A more convenient method of getting a car loan with no credit history is to look up the internet. You may find the online route easier than approaching a lender in the offline world. There are a large number of lenders that offer customized loan solutions for unique user needs and are more lenient with the loan requirements. You may even find more options for car loans for low income earners with greater chances of instant auto loan approval.