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 length of time that payments will be made for. Typically terms will run anywhere between 36 months and 72 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 the vehicle, loan term and the borrower's financial circumstances.
What Do I Need?
Employment & Income
Typically you need to be at your current job for three or more months and make at least $1800/month. Other forms of income (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.
Down Payment
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.
Current Address
In order to complete your loan documents you must provide the lender with your current address along with address details including your monthly rent or mortgage payment.
Contact Details
You will be required to provide your full name, date of birth, phone number and email address to apply for a car loan.
Get Pre-Approved
Complete our online car loan application in minutes to pre-qualify for the car of your choice. We offer financing options for all credit situations. Get Started .
Contact Canada Drives
If you have any additional questions about car loans do not hesitate to visit our Help Centre .