Auto Financing Resources
Everything you need to know about getting approved for a car loan in Canada
Bad Credit Auto Loans
Learn how to get approved for a car loan even with poor credit history. We work with lenders who specialize in bad credit financing.
Learn More →Auto Loan Calculator
Estimate your monthly payments based on loan amount, interest rate, and term length. Get a clear picture of what you can afford.
Learn More →Improve Your Credit Score
Discover practical tips to rebuild your credit and qualify for better rates. Small changes can make a big difference.
Learn More →Understanding Auto Financing
Learn the basics of car loans, interest rates, down payments, and loan terms. Make informed decisions about your financing.
Learn More →Our Lender Network
Learn about the participating lender network and how applications may be matched with available financing programs.
Learn More →Refinancing Your Auto Loan
Learn when refinancing may be worth considering and how rates, terms and total borrowing costs can differ.
Learn More →Tips to Improve Your Credit Score
1. Pay Bills on Time
Payment history is the most important factor in your credit score. Set up automatic payments to never miss a due date.
2. Reduce Credit Card Balances
Reducing high revolving balances relative to available credit may affect a credit profile over time.
3. Don't Close Old Accounts
Length of credit history matters. Keep older credit cards open even if you don't use them regularly.
4. Limit New Credit Applications
Multiple credit inquiries can temporarily lower your score. Only apply for credit when necessary.
5. Check Your Credit Report
Review your credit report annually for errors. Dispute any inaccuracies with the credit bureaus.
Auto Financing Basics
What is an Auto Loan?
An auto loan is a secured loan where the vehicle serves as collateral. You borrow money to purchase a car and repay it over time with interest. If you fail to make payments, the lender can repossess the vehicle.
Interest Rates
Your interest rate depends on your credit score, income, down payment, and the lender's policies. Rates typically range from 6.46% to 29.99% in Canada. Credit profile is one of several factors lenders may consider when establishing available rates and terms.
Loan Terms
Most auto loans have terms between 24 and 84 months. Longer terms mean lower monthly payments but more interest paid over time. Shorter terms save money but require higher monthly payments.
Down Payments
Down-payment requirements vary by lender, applicant, vehicle and amount financed. Some programs may permit little or no down payment for qualified applicants, while others may require one.
When to Refinance Your Auto Loan
Reasons to Explore Refinancing
- ✓Your credit profile has changed
- ✓Available interest rates or lender programs have changed
- ✓You want to compare monthly payment options
- ✓You want to compare different loan terms
When NOT to Refinance
- ✗You're near the end of your loan term
- ✗Your vehicle is worth less than you owe
- ✗Refinancing fees outweigh potential savings
- ✗Your credit score has decreased