You’ve got questions, We’ve got answers.

You will find here frequently asked questions

How much can I borrow for a car loan?


The amount a bank will finance is dependent on the book value. Banks in Canada use Canadian Black Book to determine the car’s value.

Can I pay off a car loan early?


Yes, in Canada most car loans are open-ended. This means that you can pay off your loan early without any penalties.

Can I get a car loan if I'm self-employed?


Yes, you can get a car loan. Here are some things you can do to help secure a car loan approval if you are self-employed.

How are auto finance decisions made?


Financial institutions typically take four major factors into account:

  1. Down Payment
  2. Vehicle specifics (model, style, age, mileage, and cost)
  3. Application information such as income, time at current job, and time at residence
  4. Credit history

Can I apply with bad credit?


Over 50% of our approvals are for Canadians with less than perfect credit. Get pre-approved for bad credit car loans in minutes!

I have excellent credit, what can Car Loans Canada do for me?


We offer you highly competitive terms, reduced time and effort, and a transparent transaction.

What is the interest rate on a car loan?


The interest rate is the amount of money a lender would charge you to lend money. Depending on your credit, interest rates in Canada can range anywhere from 0% to 29.99%. If a lender believes that the loan is a higher risk, they would charge a higher interest rate. It is important to maintain a strong credit profile to avoid this.

What is car loan APR?


APR stands for Annual Percentage Rate. This indicates the total cost of borrowing for your auto loan. For example, if you purchased a $10,000 car, with a 5-year loan and your interest rate was 10%. Your total cost of borrowing would be $2748.23, and you would end up paying a total of $12,748.23 for the car. Unlike mortgages, auto loans are not front-loaded. This means that you do not pay more interest than principal upfront. So, if you ended up selling or trading in the car after 3 years, you would have only paid interest on the 3 years you had the loan, instead of the whole 5.

What car loan can I afford?


Your car payments should never exceed 10% of your income. If you make $60,000 a year, your vehicle should not cost you more than $6000 a year, which is $500 a month.

Can I cancel a car loan?


Unlike some US States, there is no cooling-off period in Canada. This means that you need to be sure of your decision before signing a contract. In some cases, a dealer can work with you to make changes before delivery. It is extremely difficult for a dealer to reverse the process after delivery. So please, be sure of your decision before purchasing.

What is the best bank for a car loan?


Lenders tend to change their rates and programs each month. For example, TD could be offering the best deal this month and RBC could next month. The benefit of working with Car Loans Canada is that we work alongside all lenders to help you get the best rate for your loan.

Can I refinance a car loan?


YES YOU CAN! We would need to secure you a new approval with a lower interest rate. From there, a new lender with a new rate would pay off your existing lien in full. After that, you would be able to move forward with your new loan. Keep in mind, if you rolled in negative equity on your original loan and your loan is over book value, you could be asked to put money down.

How does financing with Car Loans Canada work?


The finance process at Car Loans Canada is simple: submit a credit application. We will review your credit application with our network of lenders, and, if approved, they will help you decide which finance offer and vehicle suits you best.

How can I find out more about my credit history?


The major credit-reporting agencies below can provide you with information about your credit history. Both can provide you with a copy of your credit report, which includes your credit score. Contact them via the Internet or call toll free:



Toll-free number: (800) 465-7166



Toll-free number: (800) 663-9980

What does your credit score mean?


Your credit score is designed to help financial institutions predict the risk associated with your purchase of a car, house, credit card, etc. Essentially, it’s meant to forecast how (and if) you will pay your bills.

The higher your credit score, the greater your chances will be getting financed. Four contributors to your credit score are:

  1. Timeliness of previous and current payments
  2. The length of your credit history
  3. The type and amount of your debts
  4. Your public records

Who refinances car loans?


Any bank would be able to refinance your car loan. A bank would first look at your credit profile, and then your vehicle vs. loan amount. It may make sense to refinance your loan to get a lower interest rate, if you have taken a high-interest car loan and improved your credit.

How long is the application process?


Your car loan application with Car Loans Canada takes less than 5 minutes and you can do it from your phone or computer. You will receive a call from your local approval center after you create your free account.\

What are car loan rates today?


Rates in Canada can change weekly! They can range anywhere from 0% to 29.99%. Head over to our Rates Page now and find out the current rates.

I have had past credit problems, what can Car Loans Canada do for me?


Our finance sources provide offers to accommodate most credit profiles. Even with past problems, you will still get the credit you need, the car you want, and respect you deserve at Car Loans Canada.

What's your inventory?


At Car Loans Canada, we have access to all makes & models for both new and used vehicles in every province. Our approval centers will first secure you the lowest rate and best approval. From there we can help you select a vehicle that matches your approval.

Can I qualify for financing if this is my first vehicle purchase?


Many Car Loans Canada customers qualify for financing on their first vehicle purchase. If a normal credit determination cannot be made based on your current credit history, you may still qualify for other programs, like those for recent college graduates. Stipulations for college students vary by the finance company. We have great new programs designed and tailored for first-time car buyers.

Can an auto lender garnish your wages?


An Auto Lender would have to be awarded the right to garnish by a judge to legally be able to garnish your wages. This rarely ever happens because a car loan is an asset-based loan, meaning that the loan is against the car itself. The standard practice is that the lender would repossess the vehicle if you were to default on your loan. Obviously, this is not ideal. Please get in touch with one of your credit specialists if you are thinking that you may default on your loan.

Can I apply for credit online?


You can apply for online car financing at Car Loans Canada. Use one of our easy to fill credit applications. Apply now, chat with us or simply call us to get more details about online car loan services.

Why finance with Car Loans Canada?


The Car Loans Canada finance process is fast, competitive, and features offers tailored for specific customer needs.

Who are the Car Loans Canada finance companies?


Car Loans Canada works with a large network of lenders who are ready to get you financed.

Our Clients Have Received Financing From Companies Like:

  • Bank of Montreal
  • Trend Financial
  • Carfinco
  • Ford Credit
  • FinanciaLinx
  • Royal Bank
  • Scotia Bank
  • Scotia Dealer Advantage
  • Servus Credit Union
  • TD Canada Trust
  • VFC
  • WS Leasing
  • Dominion Leasing
Didn't see the answer you were looking for? Send us an email anytime at

1 Click Away From Your Dream Car

Get a car you love, at a payment you can afford

Apply Now!