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:

Principal

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.

Term

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.

Interest Rates

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.

When you get a car loan you are typically making payments back to a lender rather than to the dealership. That being said, some dealerships will offer in-house financing, which might allow a customer with bad credit to get an auto loan in instances where they otherwise would not have been able to. In this case the car loan is directly with the dealership or “in-house”.

When you get a car loan you are typically making payments back to a lender rather than to the dealership. That being said, some dealerships will offer in-house financing, which might allow a customer with bad credit to get an auto loan in instances where they otherwise would not have been able to. In this case the car loan is directly with the dealership or “in-house”.

  • Employment & Income

    Typically you need to be at your current job for three or more months and make at least $1500/month. Other forms of income, such as certain types of government assistance may also be accepted.

  • Driver's License

    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.

  • Bank Account

    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.