Auto Source Finance has been helping customers for 20 years in the Non Prime – Sub Prime Car loan Market. They are specialists in evaluating your credit and work with you to over come your Bad Credit Issues. Auto Source also works with Consumer Proposal Companies in Canada to get you back on track should you not qualify for a Bad Credit Car Loan. They will work with you from start to finish getting your credit back on track!
Non Prime or Sub Prime Car Loans in Canada are still dominated by two key financial institutions in Canada.
TD Financing Services (Formally VFC.Inc) and Scotia Dealer Advantage (Formally Travelers Lease)
Both Institution offer similar programs for Car Buyers with Poor or Bad Credit, however their lending criteria’s are somewhat different.
TD Financing Services is somewhat more aggressive in their lending policies and seems to accept Bad Credit Car Loan customers more often. To qualify for a Bad Credit Car Loan with TD Financial Services you require the following:
TD Financing Services will consider applicants with:
o TDSR (Total Debt Service Ratio) of up to 50%.
o Residence and employment stability of 6 months or greater.
o Income levels of $1800/month ($10.50 per hour if paid hourly) or greater for single applicants and $1800 or greater combined for joint applicants.
Bad Credit Car Loans through TD Financing Services are approved on a Tier system unlike conventional financing. They assess your credit and approve you from a 1 Key to a 5 Key approval with rates ranging from 29.5% for a 1 Key to 9.9% for a 5 Key.
TDSR is based on 50% of your gross income so if you make $ 3,000.00 per month, you can only utilize $ 1,500.00 of your income to service your debits. This means that you have $1,500.00 out of which your rent, utilities and any other payments are taken from.
TD Financing Services will not accept you if you have active collections within 1 year or a previous repossession within 2 years. Basically if you’re seeking a Bad Credit Car Loan and your credit bureau shows active collections you’re most likely going to be declined.
TD Financing Services does accept clients that are in Bankruptcy or in a Consumer Proposal however they will need to contact the firm handling your file to assure you can afford a new loan and that you are presently up to date with payments.
If you are under 25 years of age and have credit problems TD Financing Services does tend to frown upon you and your best to go to Scotia Dealer Advantage.
TD Financing Services values its customers and offers current customers who have made 12 months of timely and consecutive payments an opportunity to trade in their vehicle with rates starting at 10.9% or 9.9% (5 Key) with the Flex Rate Option, on approved credit which means making your payments on time!
Scotia Dealer Advantage will consider applicants with:
Minimum Income: Minimum of $1,750 (from one main source) required for each single applicant. For co-applicants a minimum of $3,000 combined spousal household income will be considered.
Scotia Dealer Advantage does not accept clients in Bankruptcy or Consumer proposals. You must be fully discharged or released from your proposal to qualify for a Scotia Dealer Advantage Bad Credit Car Loan; however Scotia Dealer Advantage does offer better rates.
Scotia Dealer Advantage does base its TDSR similar to TD Financing Services
Getting Bad Credit Car Loan with Scotia Dealer Advantage does have other advantages, they have a similar rating system to TD Financing Services however the Rates are mush lower. Scotia Dealer Advantage also looks at clients with active collections as long as they are within reason. If you got a recent Loan at Money Mart and didn’t pay it don’t bother applying as neither Bank is interested.
Auto Source Finance can assist you in finding a Bad Credit Car Loan and help you get your credit working for you again.