• Last Updated:
  • Jan 15th, 2019 4:11 pm
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[OP]
Newbie
Nov 18, 2018
7 posts
2 upvotes

Financing Help

Hi
I had been driving a very old car which is at the end of its life.
I plan to buy a brand new corolla or civic but I am not sure if I will get financed or not.
I missed some payments on my credit card back in 2016 but now everything is paid off and my credit score is 690 on TU & 680 on EQ.
No written off accounts on the credit file other than those missing payments, haven't missed a payment since.
I make around 80K/year,
I want to know what are the likelihood of me getting approved for financing on a brand new vehicle for 5 or 7 years and what kind of interest rates i am looking for.
I am concerned cause i applied for mbna credit card and got declined due to those missing payments, but got approved from Canadian Tire.
Any help will be much appreciated.
13 replies
Deal Expert
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Jul 30, 2007
22119 posts
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Toronto
buy in cash or buy a slightly used one (in the worst case scenario)
Member
Jan 12, 2013
420 posts
314 upvotes
Halifax
Every institution has different lending requirements. Its relatively easy to get approved for car loans. Your income is good, and if you have no other outstanding debts, you should be approved without much hassle. Your credit score is above the minimum threshold by quite a bit as far as I understand.

At Honda, or Toyota, the dealer will attempt to finance trough HFS (Honda Financial Services) or TFS (Toyota Financial Services). Go on the Honda and Toyota website and select "Build" and the finance and lease rates will be right there. I believe, depending on the term, rates are between 2.99%-4.99% at the moment. Typically a longer term means a higher rate ie. 5 year finance rate is lower than seven year finance rate.

If for some reason HFS/TFS deny your loan application then the dealer will move on to traditional banks (Scotiabank, RBC, TD, etc.) and then the rates can vary quite significantly from one to another. Remember, the dealership WANTS your business. They're going to do whatever possible to get your loan approved.
Moderator
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Jul 5, 2004
23391 posts
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You'll likely get approved with no issues
[OP]
Newbie
Nov 18, 2018
7 posts
2 upvotes
TBBA29 wrote:
Jan 15th, 2019 10:10 am
Every institution has different lending requirements. Its relatively easy to get approved for car loans. Your income is good, and if you have no other outstanding debts, you should be approved without much hassle. Your credit score is above the minimum threshold by quite a bit as far as I understand.

At Honda, or Toyota, the dealer will attempt to finance trough HFS (Honda Financial Services) or TFS (Toyota Financial Services). Go on the Honda and Toyota website and select "Build" and the finance and lease rates will be right there. I believe, depending on the term, rates are between 2.99%-4.99% at the moment. Typically a longer term means a higher rate ie. 5 year finance rate is lower than seven year finance rate.

If for some reason HFS/TFS deny your loan application then the dealer will move on to traditional banks (Scotiabank, RBC, TD, etc.) and then the rates can vary quite significantly from one to another. Remember, the dealership WANTS your business. They're going to do whatever possible to get your loan approved.
Thank you for the input, i do have a 6K loan from TD Canada Trust & around 9K studen loan from OSAP but all are in good standing and i have never missed a payment on those.
My expenses are way lower than my salary even after making huge payments per month on theses loans. I was just concerned that the missed payments in 2016 will work against me.
No Credit Card debt what so ever currently.
Deal Expert
Aug 22, 2011
24362 posts
10714 upvotes
Ottawa
I can guarantee you that the dealership will get you financing...one way or another.
Last edited by vkizzle on Jan 15th, 2019 11:51 am, edited 1 time in total.
Deal Addict
Jan 15, 2017
1860 posts
1276 upvotes
Putting money down on the car will help also.
Sr. Member
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Dec 21, 2013
968 posts
701 upvotes
GTA
None of us can give you a genuine answer as to whether you are going to get approved for financing and at what rate.

My suggestion is once you're ready to buy, go to a dealer, haggle on the car you want, then go through the process of financing.
Don't tell them about your previous credit issues - leave it up to the finance manager to work out something.

Then ask RFD if you're getting a good deal or not.



From someone who worked in credit many moons ago - the consistency of payments is more important than the size of the payment. A good credit score is reflective of someone who is able to service their debts, not someone who sporadically borrows and pays it off.
Deal Addict
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Jun 26, 2011
1610 posts
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Someone making 80k should get approved for a Corolla or Civic easily.
Deal Fanatic
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Jul 12, 2003
9490 posts
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Markham
Making 80k, missing some CC payments, no other debt or big liability. Credit score high 600s.
I don't see any reason they deny your financing on a 30k max car.
Retired Forum Moderator February 2009 - June 2015
Deal Guru
Jan 15, 2006
10634 posts
5778 upvotes
Richmond Hill
MP3_SKY wrote:
Jan 15th, 2019 2:38 pm
Making 80k, missing some CC payments, no other debt or big liability. Credit score high 600s.
I don't see any reason they deny your financing on a 30k max car.
This, high 600's credit score is "ok". It's far from bad, but not great either.
Deal Guru
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Oct 5, 2008
10715 posts
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Toronto
Buy a Nissan, judging by how many new Nissan's i see with Uber & Lyft stickers, they finance everyone.
Deal Guru
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Apr 26, 2004
10728 posts
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Mississauga
Swerny wrote:
Jan 15th, 2019 2:53 pm
Buy a Nissan, judging by how many new Nissan's i see with Uber & Lyft stickers, they finance everyone.
Their financing arm's full name is the Nissan Motor Acceptance Corporation. They really do approve everyone!

OP, you should be fine with Honda or Toyota, but in the off chance they reject you or give you a crazy high interest rate, look into a Sentra or Altima. :)

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