Across Canada, approval criteria for auto loans have become more and more challenging. Residents of Newfoundland and Labrador are in the same boat, as financial institutions across the province have tightened up their guidelines. However, there are finance companies who really want your business, and we can help you find them. Simply click here to apply online.
Getting Approved for a Car Loan in NL
The two greatest variables in any car loan are credit rating and income. Citizens of Canada’s easternmost province have an average income of $62,580 each year. Of course, that’s plenty to qualify for auto financing in Newfoundland and Labrador.
For the highest odds of getting approved, you must have:
- Earnings Of More Than $18,000 Per Year Before Taxes
- A Minimum Of 1 Year At Current Job
- Active Debts Equaling Only One Half of Wages
Even when you can’t fulfill these criteria, you may meet the requirements with a co-buyer, more money down, or even through a Newfoundland buy here pay here car lot.
Newfoundland Auto Loans with Zero Down Payment
Trying to find an auto loan with no money down in Newfoundland or Labrador? We may be able to help, though a down payment is advisable if you have enough cash. By and large, lenders will be satisfied with an advance payment of 15-20%.
Another concern is your car payment. Don’t devote over 18-20% of your income for your Newfoundland and Labrador car loan. Let’s consider average numbers for Newfoundland and Labrador drivers.
- Yearly Income: $62,580
- Monthly Income: $5,215
- Max Payment Range: $939-$1,043
Let’s look at Newfoundland and Labrador FICO scores overall:
- 350-549 Credit Score: 20,600
- 550-599 Credit Score: 20,600
- 600-649 Credit Score: 30,900
- Credit Score Deemed “Poor”: 620 or less
Nobody wants to get rejected. We can help. Simply click here to submit your application online. Virtually all loan creditors require down payments from applicants (usually 10%), along with a minimum debt-to-income ratio (only one half of income being allocated toward debt payments every month).
Buy Here Pay Here Financing: (NL)
In Newfoundland, buy here pay here financing is becoming more common. These dealers may be labeled as Tote the Note, Your Job is Your Credit, or in house financing dealerships.
These auto loans will often be granted without any credit check. Alas, they have some major downsides. The interest rates and amount due at signing are high; on top of that, you will have little chance to re-establish your credit rating through such a dealership. They rarely report to Canada’s top two credit bureaus: Experian and Transunion.
Remember to investigate any NL buy here pay here dealer on the web. You’ll want to talk to somebody who has purchased a car or truck from them recently. Ask them whether or not the dealer can be trusted.