Buying A Used Vehicle Question
 

I need some advise here guys.

Here's my situation, I make a decent yearly salary, and I'm in the market to buy a used vehicle for around $10-$15,000.

I've gone to my bank (Vancity) and they have turned me down for a loan. I've had a loan in the passed, and paid it off quite easily for $5000, in addition I do not have one missed payment on my credit report, nothing in collections, not one single blip. Their reasoning is because my credit card was at it's max for almost a year during the time I was going to school last year. Even though I did not miss a single payment during this time, having the Credit Card at max lowered my score to around 650.

What are my options at this point? The credit card has been paid down, however my Equifax has not updated from RBC as of yet.

Should I apply to another bank once it has been updated, or should I look into financing or leasing a vehicle through the actual automaker?

What banks are best to apply for a loan, as it appears Vancity isn't that good.

Or should I skip the whole loan process with the bank and go for a lease or finance with a dealership? If so, which dealerships are good for using leasing/financing?

Thanks a lot for the help.

Avoid financing a used car thru the dealership, (high interest and whatnot) and see if you can get a loan from another bank, i know RBC and Scotiabank are quite keen on handing out loans.

OR wait until they update your credit score and stick with vancity, maybe a better car/deal will pop up by then

A lot of used car dealers have financing available. www.repo.com does. However I dont know how high the interest is.

Repo has financing, but it's just through TD and RBC. In that case, it would make no difference to go through the banks directly myself.

can you "co-sign" a car loan with your parents?

ya used vehicle intersts are like 7-8%

:(

yeah im kind of in the same situation. Looking to buy a used car for about 15000-20000$ but im planning to put place a 10k down payment and then loan the rest from RBC.

Do you think i'll be able to get a loan for about $8000 through RBC considering that i'm putting a 10k down payment on the car? I'm a full time student but also have a part time job that can pay off the monthly payments.

Any input would be nice! Thanks :)

Bank on Mom and Dad is where you should go to. Why go to a bank and pay prime + interest? Your parents will be happy if u give them 1% interest. I'm not trying to be funny here but they way I see it is that paying interest to your parents maintain your family's wealth but paying interest to the bank decreases your family's wealth.

My family is a little different, heh. My mom is retired, and my dad who makes good money has never assisted me with anything. School money - none, all my cars I purchased on my own.

I actually asked him to co-sign me so I could get a better interest rate, and he said no, stating that "what if you passed away, or lost your job, I'd be stuck with the loan".

Pretty pathetic eh, big reason I never bother to visit the guy anymore.

But anyways, I'm going to check out a car tomorrow, I've heard of some other brokers that do loans, anyone have any other recommendations?

Broker's loan are typically higher than banks.

Bank offers the best rates, then it is dealerships when you buy the cars they want you to buy.

Why don't you go with RBC instead of Vancity?

Always deal with the same person you deal with at your branch. Build relationships. Once you know the manager or your banker, a lot of your banking issues get a heck lot simpler.

It's not surprising, banks have tightened their belts these days.

Yeah i always go to the same mutual funds manager whenever i have questions regarding investments and other issues. I guess i'll make an appointment with him tomorrow to discuss about the loan etc.