We are often asked by new arrivals of the greater Vancouver area why they shouldn’t just jump in their current vehicle and check out local new and used car dealers instead of using Auto Sources guaranteed Vancouver Car Dealer matching service and apply for our pre qualified auto loan. This answer to this question really depends on your credit history .
If you have a fairly extensive credit history that shows you make your payments on time, you should be able to purchase a vehicle with a traditional prime or near-prime auto loan. But even if this is the case, you should still do some research on the internet. As an example, Consumer Reports Canada has an excellent web site that enables you to view the repair histories of most cars, so that you can see how the vehicle you’re interested in compares with the other cars or trucks in its class.
If you have no credit, however, you may want to hold off driving around the greater Vancouver area. Here’s why: the Vancouver car buying process is much different. And just as the Immigrant buying process is different, so is the dealer that can help you with a car loan.
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The fact is, many Vancouver car dealers choose not to deal with New Immigrants or Foreign Workers with 9 sin numbers. New Immigrants require more effort than regular loans in the sense that dealers are responsible for more documentation and for making sure that the documentation is correct as well as verifiable. If anything goes wrong in the documentation process, the contract is sent back to the dealer and the dealer holds the contract for the car. This means the dealer must collect the monthly payments from the customer and dealers do not want to do this.
As a New Immigrant or Foreign Worker, it’s important to realize that just because a dealer happens to sell cars, does not mean that dealer has the right kind of cars. A dealer’s new and used car inventory also has to be adjusted for Special lending. Vehicles in inventory have to meet lender guidelines in terms of mileage and year.
Vancouver used car dealers also need to be purchased at or below Canadian Black Book wholesale, since New Immigrant and Foreign Worker lenders base their “advance” (how much they will finance) on these figures. New cars also have to be within a certain price range, since bad credit lenders that do business in Vancouver are very strict about keeping your car payment within a budget range. Without the correct inventory, the dealer can’t sell any of the cars on the lot to New Immigrants or Foreign customers.
In addition to documentation and inventory issues, there isn’t a large number of sub prime lenders licensed to do business in the greater Vancouver area as well as the complexity involved with understanding the varying programs that they offer. New Immigrant and Foreign Worker lenders have at least five “tiered” programs and each program can have its own set of requirements. Without a knowledgeable special finance department, keeping track of the lenders and programs is impossible.
The solution to the problem of finding car loans for people with bad credit in greater Vancouver is to use our extended services at Auto Source Financial. We have helped thousands of New Immigrants or Foreign Workers buy cars and establish their credit at the same time. We have a network of affiliate dealers that specialize in car loans for people with no credit in British Columbia and throughout the rest of Canada.