Understanding Car Loans

The Process of Finding a Car Loan Doesn’t Have to Be Confusing or Stressful.
Let us Break it Down For You.

Payments on car loans are calculated using three components:


The total cost of a vehicle including any fees that the lender or dealership may have for the car loan and any options or add-ons you choose.


The length of time that payments will be made for. Typically terms will run anywhere between 36 Months and 96 Months (Shorter or longer terms are sometimes possible).

Interest Rates

The percentage that the lender is charging for you to borrow money. Interest rates can vary depending on whether the vehicle and the risk the lender perceives in lending the loan.

Typically you need to be at your current job for three or more months and make at least $2000/month. Other forms of income, such as certain types of government assistance & Child Tax may also be accepted.

It is necessary to have a valid driver’s license and be the age of majority in the province that you live in. Lenders know that customers are more likely to pay back their car loan if they can legally drive. Learners Drivers Licence is only accepted by few lenders.

The lender wants to be able to take the payment out of your bank account each month. The easiest way to do this is to get a void cheque or stamped pre-authorized payment form (PAP form).

In order to complete your loan documents you must provide the lender with your current address.

Although a down payment isn’t always necessary, it will often help. The less you have to finance, the more likely the lender will be to approve your car loan.

Apply for Your Car Loan

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