You will find here frequently asked questions
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.
Yes, in Canada most car loans are open-ended. This means that you can pay off your loan early without any penalties.
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.
Financial institutions typically take four major factors into account:
Over 50% of our approvals are for Canadians with less than perfect credit. Get pre-approved for bad credit car loans in minutes!
We offer you highly competitive terms, reduced time and effort, and a transparent transaction.
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.
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.
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.
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.
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.
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.
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.
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
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:
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.
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.\
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.
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.
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.
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.
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.
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.
The Car Loans Canada finance process is fast, competitive, and features offers tailored for specific customer needs.
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: