Should I get pre-approved before visiting a dealership?

Yes. Walking in with a pre-approval tells you the amount and payment you actually qualify for, so the conversation is about the car and the price rather than the financing. It also gives you a rate to compare the dealer's own financing against.

Can I finance a car with bad credit in Canada?

Yes. Subprime auto lenders work specifically with rebuilding credit, though rates are higher and a down payment or co-signer strengthens the application considerably.

Do I need a down payment for a car loan?

Not always, but putting money down lowers the amount financed, reduces your monthly payment and total interest, and helps you avoid owing more than the vehicle is worth in the first couple of years.

New or used — which is easier to finance?

New vehicles often carry manufacturer-subsidised rates, while used vehicles cost less to buy but usually carry a higher rate and a shorter maximum term. Compare the total cost over the full term, not just the monthly payment.

Car loans

Get pre-approved before you walk into the dealership

Dealer financing is convenient, but it's rarely the cheapest option you had available. Compare auto lenders first, arrive with a pre-approval in hand, and negotiate the price of the car instead of the payment.

Get pre-approved See our lenders

Checking offers won't affect your credit score
Always free to compare — we're paid by the lender
Canadian lenders, coast to coast

How it works

Three steps to an auto pre-approval

A soft check tells you the amount and payment you qualify for, without touching your credit score.

Answer a few questions

Tell us the amount you need and a little about your situation. It takes about two minutes and never touches your credit score.

Compare your offers

See the lenders you qualify with side by side — rate, term, monthly payment and fees — and pick the one that costs you the least.

Get funded

Finish the application with the lender you chose. Several of our personal loan partners deposit funds within 24 hours of approval.

What will the car actually cost you?

Set the vehicle price, the term the dealer is offering and the rate you've been quoted to see the real total.

Car loan calculator

Estimate your payment before you apply. Move the sliders to see how the amount, term and rate change what the loan actually costs you.

Loan amount$28,000

Term60 months

Interest rate8.90%

Estimated monthly payment

$579.88

Amount borrowed: $28,000
Total interest: $6,792.56
Total repaid: $34,792.56

Estimates only, based on equal monthly payments and the rate you enter. Your actual offer depends on the lender, your credit profile and any fees.

Financing a vehicle in Canada

Auto loans are secured against the vehicle, which is why rates are usually lower than an unsecured personal loan — and why the lender can repossess if payments stop. Terms typically run 36 to 96 months, and the longer you stretch, the more likely you are to spend years owing more than the car is worth.

Watch the term, not just the payment

A dealer can hit almost any monthly payment target by extending the term. Ask for the total cost of borrowing over the full contract and compare that number between offers.

Rebuilding credit

Subprime auto lenders in Canada regularly approve borrowers with past bankruptcies, consumer proposals or thin credit files. Expect a higher rate, and strengthen the file with a down payment, proof of stable income, or a co-signer. Making every payment on time turns the loan into one of the fastest ways to rebuild a score.

Before you sign

Confirm whether the loan is open or closed, what add-ons have been rolled into the amount financed (warranties, protection packages, gap insurance), and whether the rate is fixed for the whole term. Add-ons are negotiable and are financed at the same interest rate as the car.

Car loan questions, answered

Find out what you're approved for

Check your auto financing options in about two minutes. Free, and it won't affect your credit score.