Bad credit? Here’s how to buy a car

bad credit car loans from Budds' Auto Credit

When you decide it’s time to buy a vehicle—new car, used truck, or whatever you fancy—you’ll almost certainly be looking at car financing.

But if you’ve been facing credit challenges, things can be harder.

It’s not that you won’t be able to get a car—just that you’ll have two goals:

  1. Find the right vehicle, and
  2. Find someone who’ll finance you even though you have “bad credit.”

But a simple Google search for “bad credit car loans” turns up too many options, and it can be hard to distinguish one offer from another.

The bad news—you need to make sure you get the right financing the first time. The good news: at Budds’, we’re here to help.

Before you start—don’t simply “shop around”

If you need a car and you know you have problems with your credit, the worst thing you can do is “shop around,” filling out applications for cars you don’t necessarily want in the hopes that someone will extend you credit.

Why? As part of the financing process, dealers will run a credit check. (In a nutshell, that’s an inquiry to one of Canada’s two major credit bureaus, Equifax or TransUnion.)

The purpose of a credit check in a situation where you need a car loan with bad credit is simple. Lenders need to know your credit score, a measure of how you’ve used the credit you’ve had over the years.

But too many inquiries in a short period can make the banks who lend the money nervous that you’re desperate for cash.

So they’ll decrease your credit score as a signal, for example, that a dealership may not want to let you buy a car.

That means you should identify a “bad credit car loan” provider only when you’re ready to move ahead with a single credit check.

Don’t use the process of buying a car to tell you about your credit score—pay for a report from one of the credit bureaus instead.

Then—be selective about your loan provider

You’ve surely seen the typical subprime loan claims: “we finance everyone,” or “in-house financing,” or “buy here, pay here!”

Steer clear of these types of bad credit loan claims. Yes, they’ll sell you a car if you have bad credit, but these kinds of loans typically come with very high interest rates.

What’s more, because you’re paying the dealership and not, for example, a bank or an accredited financial provider, your loan payments will do nothing to help you build your own credit.

Budds’ Auto Credit—the better alternative

Like many dealerships that offer bad credit car loans, we work hard to help you get into the best vehicle you can afford.

But here’s the critical difference between Budds’ and a “we finance everyone” dealer… We offer securely financed subprime loans that help you rebuild your credit.

And we do it without insane interest rates or high down-payments.

Plus when you choose Budds’ Auto Credit, you’ll of course be working with Budds’—a trusted name from Oakville to Hamilton for more than 40 years.

That means you’ll have access to a vast selection of new and used cars—not just a few. In other words, you’ll have a much better chance of driving a vehicle you love while you re-establish your less than stellar credit.

At Budds’ Auto Credit, we address a wide variety of credit challenges. Whether you’re just out of bankruptcy, or you’ve missed just one too many credit card payments in the past, chances are good that we can work to help you get rid of the “bad credit” label.

Why? Because we know that from time to time everyone can face challenges with their credit, and we’re committed to helping you.

We work with you to determine what you can reasonably afford, and then we find a lender who is willing to work with you—to not only finance your car but to rebuild your credit.

Remember, if someone tells you they finance everyone who wants a used car, that means:

  • Your options are limited to just those few cars they have in stock.
  • They may not report your payments to credit bureaus (which means your credit score won’t improve).
  • They may not offer car loans that are specifically designed to meet your challenges.

Don’t leave your financial future to a dealer who guarantees you in-house financing, or one who says they finance everyone. It may seem like the best choice—but it’s really not.

Instead, apply today at Budds’ Auto Credit today to find the car you want and the loan you need.