Trade Ins and Bad Credit Auto Loans

In this video, Auto Credit Express discusses using a trade in as a down payment for a bad credit auto loan. For more helpful tips and advice on bad credit auto loans, please visit
Video Rating: / 5


Individuals with a credit score of 650 or below with derogatory credit issues on file and a total debt to income ratio (total monthly bills divided by total gross income = TDSR) of 45% or less qualify for our bad credit auto loans Credit Rebuild ProgramĀ® in Atlantic Canada.

You must be 19 years of age and have a personal gross income of ,700 per month, with a minimum of 1 month on the job. Unemployment, student loans income, and welfare do not qualify as approved income sources.

Credit Rebuild ProgramĀ® Highlights

As a perceived credit risk to lenders, rates and terms for borrowing are adjusted based on a series of risk factors. Our objective is to get you approved with the very best rates and terms available. Here are some key highlights for the bad credit auto loans Credit Rebuilding ProgramĀ® for individuals in Atlantic Canada:

– Dealing with all major banks, financial institutions, and a deep network of private lenders
Interest rates ranging from 10.5% to 29.9% based exclusively on risk factors
– Extended terms to lower monthly payments
– Little or no money down
– Areas that will help us get you a favorable approval will include providing a qualified parental or spousal co-signer and a down payment.

Everyone’s situation is unique and we have a 96.8% approval rate on qualifying applications.

What to Bring With You

When shopping for your next vehicle, you will need to bring some basic information to be used by the lenders, including:

– Government issued photo identification
– A personalized VOID cheque or a stamped pre-authorization payment (PAP) form from your bank
– A recent pay stub showing your year-to-date income
– If you have a license plate you want to use, bring it along with the plate permit
– If you’re trading in your car, bring in the ownership paper
– Finally, if your government issued ID does not match you current address, you will also need to bring in a recent utility bill to verify your address.

Seasonal Employees

Seasonal employees must have a least 2 seasons of employment with the same company and work a consecutive 5 months each season to qualify for an auto loan in Atlantic Canada. Income is verified with the following:

– Previous years T4 & T4E
– Recent pay stub
– Job letter on letterhead stating your rate of pay, the amount of hours you are guaranteed per week, your start date with the company, and contact information for a follow up telephone call.

Self-Employed Individuals

People who are self employed must have a least 1 full year in business with taxes filed to qualify for an auto loan in Atlantic Canada. Income is verified in the following manner:

– Previous years T5
– Current financial statements
– Statement of business activities (filed with your taxes)
– Occasionally some lenders also want to speak directly to your certified accountant to clarify specific questions.