This week, we went around and asked our team about the most common questions clients ask throughout our application process.
1) I’ve been declined at many dealerships, what makes you think you can help me when they couldn’t?
It’s easy to be skeptical of our services when you’ve already been declined by multiple dealerships. Like any creditor, car dealerships look at your credit score, history of credit, job stability and residence. The longer you have been at a residence, held the same job or worked in the same field, the less risky an investment in your and your car will be. If you have bad credit or a seasonal job, you are a higher risk for the creditor and they are likely to decline your application.
At Canada East Rides, we are Maritimers, we understand the challenges our economy presents. Slow job markets, lower wages and seasonal work all prohibit a person from getting approved for a car loan at a dealership. We believe that every Maritimer has the right to own a vehicle. We’ll take the time to understand your situation and develop a tailored solution that works for you. And our dealers? They’ve been our partners for years. They know what we stand for and share our values.
2) My trade-in has negative equity. Is that a problem?
A car, especially a new car, depreciates in value as soon as you drive it off the lot. This makes it easy to end up with negative equity on your car. Having negative equity means you owe more money on your car loan than the car is worth. When shopping for a new car, our clients often wonder if this is something that will prohibit them from getting approved.
Having negative equity is not usually a problem. We’ll pay your current car loan and consolidate the negative equity amount into one loan. For example, if you owe $15,000 on your old car but it’s only worth $10,000, we’ll pay the full $15,000 off and add the $5,000 to the new loan. This will allow you to buy the new car without hassle. And we don’t stop there! We’ll also help you make sure you don’t run into a negative equity situation again.
3) I’m not looking to buy right now. How long is my approval good for?
Buying a car is an emotional experience and owning a car is a relationship. It’s not only a big financial commitment, dealing with car dealerships can be stressful. We always recommend taking your time when buying a new vehicle. Don’t rush. We ask our clients to avoid making a significant financial decision under pressure.
You should always take the time to do your research. In this industry, knowledge is power. You can find out anything you want to know about a car online. Once you’ve picked your top three-to-five options, we recommend taking the cars out for a test drive. Driving is an experience and you should feel 100% comfortable in the vehicle you about to buy.
To help relief the pressure, we give you a three-months period to pick a vehicle once you’re approved for a car loan.
4) I am a seasonal worker and am laid off in the winter, will this affect my chances of a possible approval?
No, it will not affect your chances of getting a car laon. We are Maritimers too and understand the road blocks you run into as a seasonal employee.
A good portion of the industry in New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland is based around seasonal work. That is why we have partnered with dealerships who are specialized in dealing with seasonal employees. We’ll take the time to understand your situation and get you into an affordable vehicle that works for you.
5) Can I get a brand-new car as well?
At Canada East Rices, we have access to over 10,000 new and used vehicles through our network of dealers. Once your car loan is approved, our representatives will help you pick the vehicle of your choice.
In the past, buying a well-kept used car was the best way to save money. Now, people are holding onto their cars for longer periods of time and prices for used cars have increased significantly. Sometimes, a new car is a more realistic option.
Whatever your credit situation, we are here to help. We truly believe that anyone should get a chance to own a vehicle. If you have other questions you’d like answered, check out our frequently asked questions or get in touch, we’d be happy to help.