Understanding Car Loans


Zero percent financing on vehicles has been so successful that other markets, such as the credit card industry, have begun to adopt the concept. The research is quite interesting, as it shows that roughly only a third of buyers who apply for 0% car financing ultimately qualify. Further only about 10% of those who qualify actually buy a car, according to the National Automobile Dealers Association.

At first, these numbers may seem a little puzzling, until you realize one very important fact. In order to qualify for 0% car financing, an applicant needs to have near perfect credit. That’s right, near perfect credit!

Frequently, qualified buyers who receive the 0% financing, overpay for their vehicles as they fail to negotiate the price. Why? They have mistakenly assumed that they have already received the best deal available, but they are wrong.

Just because you receive 0% financing doesn’t mean you are getting the best deal possible. These offers are usually structured as “0% down or $10,000 cash back” or a similar offer. Here is an interesting fact; that $10,000 in cash that you losing by taking the 0% option is the actual cost of borrowing. This often translates to car loan rates that are, in fact, significantly higher than those of traditional car loan rates. The following is an example.

Annual % Rate 0% 6.95%
Cost of Car $29 000 $29 000
Less Rebate $0 $5000
Amount of Finance $29 000 $24 988
Monthly Payment $625 $596
Total Cost $29 999 $28 608
Savings $0 $1391
* based on 48 months
* an actual car found on the internet – 2015 mid size sedan

All you have to do is look at “Savings” at the bottom of the chart to see which option is the best. It is also possible to look at the same vehicle, only this time the vehicle in question is pre-owned and comes with 10 000 km on the odometer. Keep in mind that you are only qualified for new cars when it comes to 0% car financing.

Annual % Rate 0%(new) 6.95%(pre-owned)
Cost of Car $29 000 $19 999
Less Rebate $0 N/A
Amount of Finance $29 000 $19 999
Monthly Payment $625 $478
Total Cost $29 999 $22 944
Savings $0 $7055
* based on 48 months
* actual car found on the internet – 2015 mid size sedan

As you can plainly see, the best auto loan rate is the 6.95% rather than the 0% option. This all serves to underscore how important it is to do your research before signing up for any “special deals.”

A recommended method for securing the best auto loan rate would be to fill out an online car loan application. Simply click on Smart App Credit Application and you can fill out the application quickly and without any hassles.

This process is for car buyers with good, bad or even no credit history whatsoever. Often more than one dealership or lending company will compete for your business, which allows you to choose the best car loan rate option. This way you can spend your time researching the perfect car for you and not waste your time dealing with all the in and outs of car financing.


There are lenders that specialize in car loans for people with bad credit. These lenders have minimum requirements that borrowers must meet and Car Loans Canada can help you find them. At Car Loans Canada, we have helped thousands obtain bad credit auto loans. We do this by evaluating your current situation and putting less emphasis on your credit history. We will carefully match each person needing a loan with an appropriate lender.


Canada’s large chartered banks have been forced to compete with smaller lending institutions that offer car loans to those with credit issues. This factor is good for anyone with a history of credit problems. While requirements for a car loan from a chartered bank may place significant emphasis on a borrower’s credit history, lenders who have specialized in auto loans for low income or bad credit have offered requirements that focus on a borrower’s ability to pay. All of this means that the landscape for Canadian car loans has indeed shifted significantly in favor of the borrower, and that is good for you!


You can expect that lender’s who specialize in bad credit auto loans will have minimal income requirements. Factors such as your total income, how secure your income is, how long you’ve been employed at your current job, and how long you’ve lived at your current address are of paramount importance. In general, if you have been employed for less than 2 years, you can expect that your prospective lender will want to see information regarding your previous employment as well as your previous home address.


People who have filed bankruptcy or have credit issues represent a simply massive market, and that means there are lenders who want to work with you! There are lenders who will look at your specific situation and evaluate it accordingly. If you don’t meet the minimum income requirements, then you may still be able to get an auto loan with the help of a qualified co-applicant or cosigner.


Car Loans Canada offers access to bad credit car loans via our network of lenders and dealers who specialize in approving car loans for people with bad credit. It has never been easier to qualify for a Canadian car loan. You can apply now by completing a secure online credit application and obtain an approved car loan without even leaving the comfort of your home.


Deciding whether to lease or purchase is a complicated question and one that can drive you a little crazy if you let it. You are the only one that can decide on which option suits you best. In this article, we will take a look at a few of the important questions you need to answer before making this important decision.


Question: Do you want to drive a new car every two to four years without major repair cost?
Answer: Lease

Question: Do you want a long term cost savings?
Answer: Purchase

Question: Do you want lower monthly payments and a smaller down payment?
Answer: Lease

Question: Do you want to pay off your vehicle and be debt free for a while?
Answer: Purchase

As you can see, your lifestyle and personal factors weigh heavily in this decision. How you decide the lease vs. purchase question depends entirely upon what your ultimate goals are both for your lifestyle and your pocketbook!


There are some fundamental differences in the auto lease versus purchase. When it comes to auto lease financing, you are paying for the depreciation of the vehicle during the term of the lease. When you are buying the car, you are paying for the price of the car itself.

For example, lets say you are interested in a $30 000 car that will depreciate by $10 000 over a lease period of 3 years. If you were leasing rather than purchasing, you would be paying for $10, 000 in depreciation as opposed to the $30, 000 price tag. This is why the monthly payments on auto lease financing are lower than those on car purchase loans. The lease payments also include financing charges. You are paying interest on the money that the lease company has tied up in the car during your lease period.

If you decide to purchase your car, then your monthly payments are not only going towards interest and depreciation, but you are gaining equity as well. Keep in mind that once you have paid off your car loans, you are able to sell your car and regain your equity. By contrast, once your lease is over, you hand the car back to the dealer, walk away and get nothing. It is no wonder that people get confused by the lease vs. purchase question! However, as you have seen here in this article, if you think through the basics, the right option for you will materialize.

Check out other articles at Car Loans Canada to learn more about auto lease financing and car purchase loans including bad credit car loans. Apply online for financing today!


In recent years, online car financing has become a simply massive component in the Canadian car loans industry. Car Loans Canada is at the forefront of offering online resources to help you get the car loan you need. Car Loans Canada can arm buyers with all the information that they need before accepting any auto loan offer. Additionally, Car Loans Canada has all the online tools necessary for you to fill out an application safely, quickly and online today!


Online car financing is growing rapidly. According to Jupiter Metrix, 5.7 million cars were sold on the Internet by the end of 2016. This works out to one in every three cars sold. J.D. Power & associates stated that 62% of new car buyers visit the Internet before buying a car. Online car financing is growing because it works.  Even for those looking for bad credit loans have success with online car financing.


If you only turn to your bank when seeking an auto loan, you are considerably limiting your options. Banks will not necessarily give you the best rates. In many cases, companies who specialize in automotive financing can offer a better rate.  It comes as a surprise to many that the automotive dealer can get you a better rate through your own bank than you would get on your own.

The exception to this rule is the use of a personal line of credit. Banks will often offer their customers a revolving line of credit at a lower interest rate than a traditional car loan. However, it is important to use this lending tool carefully, as it is normally reserved for home and emergency purposes.


Online car financing works to streamline the entire process of securing financing. It is also free of charge. Anyone can apply for an online auto loan. Car Loans Canada uses a secure server in order to protect your information so you can apply instantly with peace of mind.

Car Loans Canada offers a short credit application.  Our specialists will match you with a lender offering the best terms and rate based on your circumstances. Apply Now and you could be approved in less than 24 hours.


Keeping your car clean is of great importance. This will contribute to both keeping it in fine working order as well as to your resale value down the road. In this article, we will take a look at some easy, commonsense steps that you can take to keep your car looking its very best.

1) Always clean the tires and rims using a different cloth than you use on the body of your car. This is done so that you don’t scratch the vehicle’s paint with debris from the wheels.

2) Use good tire care cleaning products with a stiff brush. This is important even if you do not have whitewalls. A good product may cost a little more, but it will remove brake dust, which can blacken your front rims.

3) Do not use household cleaners on your car. Car cleaning products have been designed not strip the wax from your car’s paint or damage the finish.

4) To avoid scratching the finish, rinse the cloth in clean water frequently.

5) Don’t forget to clean the rear of your car last, as it is likely to have the largest accumulation of dirt and grime.

6) Wash your car’s door jams once a month.

7) Make sure when washing the body of your car that you rinse it thoroughly from top to bottom including the wheels and fenders.

‘8) When it comes time to rinse, remove the spray nozzle from the hose. Starting at the roof let the water cascade down the surface of the vehicle.

9) Avoid water spotting by drying with a chamois or other car cleaning products made for this specific task.

10) Once the surface is clean and dry, apply the wax following the manufacturer’s directions. It is recommended to avoid waxing in direct sunlight.


The key to having your vehicle last for years to come is regular maintenance. Create a car maintenance schedule and stick to it. Here are some care maintenance tips that should help:

1) Each month check for tire inflation and condition, check all lights, check to determine if your engine light is on and check your window washer fluid.

2) Do 3 month checks for automatic transmission fluid, battery and cables, belts, engine air filter, oil and filter, exhaust, fuel filter, power steering fluid and hoses.

3) Do 6 month checks on chassis lubrication, polish and wiper blades.

4) Do 12 month checks on brakes, cabin air filter, coolant, spark plugs and steering and suspension.

5) Following a car maintenance schedule and dealing with the car maintenance costs as they arise will definitely save you money in the long run, as you will avoid repairs.

Adding regular car washing to your car maintenance schedule does not add much to your car maintenance costs, but it can play an important role nonetheless. In the end, when you are ready to sell your vehicle, a clean car will be a huge selling factor. Read the article on vehicle depreciation next, and then fill out your car loan application here at Car Loans Canada today!