Consumer Proposal
Question: Two months ago I paid off my consumer proposal 9 months early. I have established a secured credit card in good standing, have maintained zero debt and have been employed long term. I need to purchase a vehicle, what is the best approach to take to have the best shot at financing (I have saved a small down payment)?
Answer: Now that your consumer proposal is completed, the car loan lenders will look at your income, your employment history, and the amount of your down payment. The bigger the down payment, the greater the chances of getting a car loan at a favourable interest rate.
Our suggestion would be to visit two or three car dealerships. Start by visiting a new car dealer; in many cases, because they have manufacturer’s financing, you may be able to get the best deal from them. Also try a used car dealer. Compare the deals they are offering you. Also ask them if you would get a better deal by having a bigger down payment, or by waiting another six months or year after the completion of your proposal. If an additional $1,000 down payment would make a significant difference in your payment, it may be worthwhile to wait a few more months before purchasing.