Buy here, pay here dealers got into the practice of advertising 100% approval guaranteed or similar claims. You still see these claims by many dealers today. Unfortunately, the claim sounds better than it is.
Everyone can get approved if they come up with enough money and/or the vehicle is cheap enough. It doesn't mean that you will be financed on anything you really want to drive. Obviously these claims have limited value to you and are often just ploys to get you to apply at these locations.
More recently, some larger bad credit auto lenders have been established in Canada and have financed newer vehicles similar to the type that has traditionally been offered. The best financing company has developed relationships with the lenders they believe offer the best value and terms.
Most of these lenders offer long term financing which can be good for you if structured properly on the right vehicle. Long term financing can also be be dangerous and bad credit auto leasing can often be preferable although not offered by many lenders.
The introduction of these new lenders has allowed used vehicle dealers to obtain poor credit to bad credit financing on later model vehicles for some of their credit challenged customers. It has also led to new car franchised dealers setting up special finance departments designed for people with bad credit. Generally, however, these departments have only one person with limited experience.
In most cases, the dealer, whether new or used, shops the persons credit all around hoping to get it approved somewhere. Importantly, most of these dealers are not set up to self finance a vehicle. If they are unsuccessful, they often leave your credit worse than when they started. And you're still without a vehicle! If they are prepared to self finance, it will usually be the older, higher kilometre vehicle for the reasons discussed above.
Get an Ontario Bad Credit Car Loan direct from an Ontario Used Car Dealer who will self finances your vehicle on great terms.
Ontario Bad Credit Car Loan Specialist