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No Credit Leasing Canada

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How to get a new car lease when the consumer has a less-than-perfect credit history, a low credit score, has a high debt-to-income ratio or No Credit at all!

The problem typically reveals itself when a consumer attempts to lease a car and the dealer pulls his credit information from Equifax or Trans Union, which is a numerical representation of the consumer’s entire credit history, and finds the score is too low for the best lease rates?

This kind of consumer is considered a “non-prime” borrower. Recent problems in the lending industry have made it more difficult now for non-prime borrowers to find loans and car leases.

Non-prime leasers may not be able to take advantage of special promotional lease deals offered by car makers. These deals have special low lease rates and are typically advertised as only being available to “well qualified” customers. To be “well qualified” means having a good credit score, a steady income, and no excessive debt.

People with no credit, bad credit will usually have an easier time leasing than buying.

The reason is that leasing is considered by Banks to be a higher risk than buying with a loan due to the fact that a down payment is often not required and that the outstanding amount owed on a lease nearly always exceeds the worth of the vehicle for most of the lease term, which is a result of low monthly payments.

If the leaser (“lessee”) defaults or misses payments, a lease company stands a greater chance of losing money if the car must be repossessed.

High debt loads can also be a problem. If a credit applicant’s outstanding debts are relatively high when compared to their income, lease companies may not be willing to let that person add more debt, which increases the probability that they will have problems paying in the future. Even with a good credit score, excessive debt can be a problem getting a lease.

To lease a car with a bad credit or no credit score may require that the customer pay a higher interest rate (lease money factor), make a larger down payment (cap cost reduction), or pay an up-front refundable security deposit — or all of the above.

Leasing customers who find themselves in trouble making payments should work with the lease company to get payment relief. The earlier you contact them, the better your chances of getting help.

Do anything to keep making payments and prevent repossession. Even voluntary lease repossession can seriously damage your credit rating for up to six years.

Lease credit requirements can vary between different dealers, banks and finance companies. Therefore, it pays to shop around for the best deals when you have poor or less-than-perfect credit.

In the current economy, it is more difficult to get approved for leases and loans with American car companies — Ford, General Motors, and Chrysler — than with foreign car makers, such as Toyota, Nissan, and Honda, Suzuki who still have plenty of cash to lend.

Auto Source Financial works with you directly to obtain a No credit, Bad Credit Lease in Canada. We have special lenders who over look past credit issues and lend on your ability to service the payment. This means it’s not about your past issues but more about your ability to make the payments.

For more information about Car Leasing for New Immigrants or Foreign Students in Canada visit www.autosourcefinancial.com. Auto Source specializes in all make leasing and Car, Truck and SUV loans for people with No Credit, Bad Credit too!


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Buying or Your Next Car

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One of the most common questions I get from clients is on the subject of buying or leasing their next car. The simple answer is “it depends”.

 

From an income tax perspective, if you are eligible to deduct automobile expenses from either your business or employment income the deductions available over time are the same.

 

What you spend on the cost of your car is deducted at a rate decided upon by the Canada Revenue Agency (CRA). The deduction is called Capital Cost Allowance or you may know it better as depreciation. So long as you purchase a car, new or used, for $30,000 or less before PST and GST, you can deduct 15% of the cost in the year you buy the car and 30% of the declining balance for every year after that. Based on this formula, eventually, you will claim 100% of the cost of your car. If you purchase a car for more than $30,000 you will not be able to make a claim on any excess amount paid. However, if you have a loan on the car purchased, you will be eligible to deduct the interest paid on the loan to a maximum of $300 per month of interest charges.

 

If you lease your car, you are able to deduct the monthly lease payments so long as they do not exceed $800 per month plus PST and GST. In rare cases it may be lower but in general, CRA sets the limits ensure that the level of deductions for leased automobiles is similar to that for purchased ones. The detriment in a lease is that the initial down payment many people make, or are required to make, is not deductible at all for this calculation.

 

The above being the case, the benefit of one over the other hinges on the timing of your purchase, the type of car owner you are or would like to be, and your overall financial circumstances.

 

The timing of the purchase is important, as a purchase on December 31 of a year will result in the same deduction available as a purchase on January 1 of the same year. On the other hand, a lease entered into earlier in the year will result in more months of payments and thus a higher deduction for the year versus a lease entered into in December will result in no deduction as no payments have been made on the lease for the year.

 

The type of car owner that you are is important because you may be a person who drives few kilometres in a year and enjoys driving a new car. Why not then lease a car and in effect rent a new car all the time! However, if you drive a car until it’s dead, you should always buy your car as your cost of leasing will far outweigh your borrowing costs in the long run. Let’s take the example of a car that costs you $500 per month on a lease, no down payment and a buy out after 3 years of $10,000. If you can buy this same car for $25,000 with 0% financing, you would save yourself $3,000 and that is assuming, you don’t drive over the allowable kilometres in the year and have the $10,000 sitting in the bank in 3 years!

 

Finally, you’re over all financial circumstances may dictate what you should do. Using the above example, if your 0% financing is only for 3 years, your monthly payments would be $694 per month. If you do not have the extra $194 to spend on a car payment, then your only option is to lease.

 

Now that you know if you should buy or lease your car and what portion of those costs you can use for your deduction calculation, keep in mind that the final tax write off will be limited to the business use of the vehicle versus the personal use. If you use your car 80% of the time for business, only 80% of your monthly lease payments or your annual depreciation plus interest is deductible for tax purposes

For more information about Car Leasing for New Immigrants or Foreign Students in Canada visit www.autosourcefinancial.com. Auto Source specializes in all make leasing and Car, Truck and SUV loans for people with No Credit or Bad Credit


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Getting a Car Loan in Canada

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 Poor credit car loans are not only for people who have declared bankruptcy. If you have no credit history, are a student, or have a lower than ideal credit score, you may be a perfect candidate for this type of auto financing. You just need to know How to Get a No Credit Car Loan in order to take advantage of the opportunity. This article will tell you how to do that. The first thing you should do is get a copy of your credit report and credit score. This is information that you should know before dealing with any lender. It gives you a chance to examine your credit history and correct any mistakes. If your reports show that you have a credit score above 550, then you stand a really chance of securing car financing. With your information in hand, you can proceed with applying for your car loan. Auto Source Financial is the Best online lender who can help you with the process.  The benefit of using an online application is that it as easy as filling out a form, and the instant response system typically gets you an answer in approximately an hour. Here are a few tips to help you get off on the right foot.

 

Dos of How to Get a Bad Credit Auto Finance.

– Be able to supply proof that your monthly income is $1,850 or more – Be eligible and capable of getting auto insurance and have a valid drivers licence – Have a guaranteed income/full time job with tax deductions- Have a working phone and be able to prove your residency. It really is that easy. There is a possibility that you may need to send or fax your supporting documentation.

 While no credit car loans are for people in all types of credit situations, there some people that just will not qualify. If your only income is from seasonal or temporary employment, you are in the military and stationed outside the country, or you are not able to provide proof of your income, you may not be a candidate for this kind of car financing. Every Application is Different as Auto Source Finance also provides loans for Immigrants and foreign student new to Canada.

Bad credit auto finance loans can help anyone. They are a great way for students to get their first experience in the world of finances. With no credit history, young drivers can start building their score and earning themselves a good credit rating. Auto Source Financial will help a student to determine how much is wise for them to spend on a vehicle loan. 

For a free credit report from equifax canada simply apply online to Auto Source Financial and a Finance Specialist will contact you on the best plan of action.

 

 

 

 


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Guaranteed Car Loan Canada

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Trying to get a Vehicle loan in Canada can be a difficult task if you don’t have credit?

After working in the Prime and Non-Prime lending field I have come across all types of credit issues. People with Bad Credit or No Credit seeking car loans in Canada have always been offered limited options with High Interest. Auto Source Financial seems to be the best solution for the New Credit or Bad Credit Car Loan Buyer.

 

 One of Canada’s best indirect consumer finance companies, ASF is a leading provider of automotive purchase financing and consumer instalment loans. Founded in 1991, ASF has proven itself as a reliable source of credit to customers and an invaluable business partner to automobile dealers and retail vendors nationwide.

 

Bad Credit Second Chance Program

 

ASF offers Bad Credit car loan Buyers a second chance program. Should you be approved through ASF after 10 months of on time car payments ASF will lower your financing fee to 8.9 % for a New Vehicle.

 

The best way to take advantage of ASF’s second chance program is in the beginning find a vehicle that fits your budget. Try to find a vehicle that is 1 to 2 years old that still has remaining factory warranty. By choosing a vehicle of this type you shouldn’t have to purchase a used car warranty as the Vehicle has the remaining balance of the Factory warranty. This will save you a little more money as used car warranties come at a price.

 

Drive the Pre Owned vehicle for the probation period with the knowledge that with in 10-12 months you will have a Brand New Car at Prime Bank Interest. Also be sure to maintain your temporary vehicle keeping it clean for return Value.

 

Upon Completion of your 10 – 12 month probation period ASF will contact you, at which time you can return your old vehicle and get a Brand New Vehicle usually at the same payment you’re presently making at 8.9% Interest.

 

No Credit Program for Foreign Workers and Students

 

If you are a New Immigrant to Canada, Foreign Student trying to get Credit for a Vehicle in Canada you have little to no options as without Permanent Residency status No Commercial Lender can or will give you a New Car Loan

 

ASF offers No Credit car loan Buyers the opportunity to Purchase a Brand New Vehicle with No Credit at all! They work with Foreign Students, New Immigrants and Citizens who have never established credit in Canada.

Auto Source will assess your needs and get you driving a New Vehicle of your choice usually within 24 hours at Prime Interest rates starting from 8.9%

 

Call Direct:  604-603-8796

 

 


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