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$7.5K to $200K (Refinance existing auto loan)
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How do I get a car loan in PEI?
The first thing you need to do to get a car loan in Prince Edward Island is to choose where you want to get it.
You can usually just get a loan at your car dealership. Car dealers can get you a loan for cars you purchase from them. Most of the big car companies even have in-house car financing so they can make sure customers can afford to buy their cars.
If you don’t want a loan from the dealership, you can go to your bank for a loan. Banks provide personal service and great rates for car loans. An employee can speak with you about the terms for your loan. Often, they can work out an arrangement with you and get you ideal repayment terms.
Alternative lenders have lower requirements than other lenders. They also offer very simple application processes and work quickly. While they will serve customers with bad credit, they will charge them higher interest rates.
How do I get approved for a car loan in PEI?
Getting a car loan in PEI is usually quite easy. You will need to provide some simple paperwork and go over any offers from lenders.
To get approved for a car loan, you will need to provide:
- A driver’s license
- Proof of income
- Proof of insurance
- Proof of residency
Your lender will assess this information before they qualify you for a loan. They will also look at your credit score and use that to come up with your rates.
Can I get a car loan with bad credit or no credit in PEI?
Yes, you can get a car loan with bad credit in PEI. If your credit score is very low, you will probably have to go to an alternative lender that will provide you with a loan. These lenders will offer you higher interest rates and might require collateral. Still, you can expect fast service and you should be able to get a loan regardless of your credit score.
What are the average car loan rates in PEI?
The car loan rates you should get in PEI depend on your credit score and the lender you go to.
They should usually be as follows:
- Excellent: 0%-3%
- Very good: 3%-5%
- Good: 4%-6%
- Fair: 6%-13%
- Poor: 10%-19.9%
Links to PEI resources that can be useful for car buyers:
Written by:
Amy Orr
Amy Orr is a professional writer and editor with over 10 years of experience in the Canadian, U.S. and U.K. financial markets. She has written for numerous publications on topics as diverse as economic literacy, corporate finance, and technical analysis of numerical data. Prior to transitioning to full-time writing, she worked in the hedge fund sector. Her academic background is astrophysics, and she has a Masters in Finance from the University of Edinburgh Business School.
Reviewed by:
Jenna West
Jenna West is Smarter Loans' in-house financial writer and content director. She has been covering the Canadian FinTech and finance industry since 2017, including financial trends analysis, industry surveys, regulatory updates and changes in Canadian consumer behaviour when it comes to finance.
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