Question: I am currently paying on my consumer proposal. I kept my car, which is leased, and have been making the payments on my car and on my proposal on time, not missing any payments. The lease on my car is due next spring and I will still have about 1.5 years left to pay on my 3 year consumer proposal. Will I be able to either purchase or lease a new car at this time?
Consumer Proposal and Car Loan
It is possible to renew and apply for a car loan or lease during a proposal.
- If your payments are up to date when your lease is up for renewal the car finance company will likely offer you a new lease; you have been a good customer with them, so they know you can handle the payments.
- However, based on market conditions, from time to time car companies will make borrowing more difficult. If that’s the case, you may not be able to lease a new car, but you will probably be able to extend your existing lease until the proposal is completed, at which point you should be able to lease another vehicle.
If you need additional evidence that you are able to make your payments when applying for a new lease or loan, it can be helpful to ask for a letter from your bankruptcy trustee or consumer proposal administrator stating that you have been making all of your proposal payments on time or in full.
One of the advantages of a consumer proposal is the ability to retain your assets, including you car, during a consumer proposal. If you are looking for debt relief and have questions about a consumer proposal, or any debt relief alternative, contact one of our accredited debt advisors today.