BUYING A CAR WHILE IN A CONSUMER PROPOSAL
November 14th, 2014 by Questions
I am currently under a five year consumer proposal with about a year left and I am currently in a situation where I need to purchase a car. Is it possible to get financing for a secured debt while under the consumer proposal.
Posted from: Ontario
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November 14, 2014 at 10:05 am, Doug Stuive, CA | Trustee | CIRP said:
Yes it is possible to obtain a secured loan for a vehicle during your consumer proposal.
Often times the company that you are financing the vehicle with will want to contact your proposal Administrator to make sure that your payment history is positive during your consumer proposal and that you are up to date with your payments. While your consumer proposal administrator cannot deny your right to obtain financing for a vehicle, they will want to make sure that the loan you are considering is going to fit in your budget and will not jeopardize your ability to complete you proposal payments.
When you are looking at financing options you will need to shop around to make sure the agreement you are signing is a good deal. Many financing companies that specialize in assisting people with a poor credit history charge high interest rates. When agreeing to the loan, it is advisable that you check out the total cost of the loan in comparison to the value of the vehicle to make sure that you are not paying way more than the car is worth in the long run. The monthly payment and its effect on your budget should also be considered to make sure the payment fits in your monthly budget.