Auto, Car, SUV, Truck and Van Loans in Toronto, Ontario

How do I get a car loan in Toronto?

The first step to getting a car loan in Toronto is finding the right lender. There are a few types of lenders available to you.

The easiest way to get a car loan is through your car dealer. Many private dealerships work with car loan providers. If it’s a big car company, the dealer can call their lending department to get you a loan. This makes your car dealer the most convenient option, as they can get you a loan on the spot.

You can also get auto loans from traditional lenders like banks and credit unions. Banks and credit unions offer good rates on car loans. They can also offer more professional and personal service for financing a car.

Alternative lenders are another way you can find an auto loan. If you’re looking for very fast service, alternative lenders will be the fastest choice. They also deal with borrowers with low credit. The only issue is they charge higher rates than the other lenders.

How do I get approved for a car loan in Toronto?

Toronto car loans work the same way as all Ontario car loans. In Ontario, you can get a car loan for the entire value of your car right away directly from your lender. You can also negotiate the rates and terms of your loan. Specifically, you can negotiate interest rates and the total repayment period. Payments are monthly, but you can make your monthly payments smaller by negotiating for a longer term.

Getting a car loan is easy. All you will need is:

• Your driver’s license
• Proof of income of at least $1,800 per month
• Proof of insurance
• Proof of residence

Some lenders may have their own separate requirements. Also, different kinds of lenders will need different documents. For example, your bank won’t ask you for proof of income, as they have access to your bank statements. Also, you must be at least 18 years old to take out any loan in Canada.

Can I get a car loan with bad credit or no credit in Toronto?

Yes, you can get a loan with bad credit in Toronto. But getting a loan with no credit will be harder.
For a bad credit car loan, you can often still get a loan from your car dealer or a bank. If your credit score is too low, or if you have no credit, you can still find a loan from alternative auto lenders. These alternative lenders will finance a car for almost anyone, but their rates will be higher. They may also require collateral.
You will still be expected to provide proof of income for bad credit car loans.

What are the average car loan rates I can expect?

Car loans in Ontario carry fixed interest rates. Rates start at less than 3% for borrowers with the best credit. For the borrowers with the lowest credit scores, rates can go much higher. The highest interest rate legally permitted in Ontario is 60%.

The approximate interest rate ranges vary according to your credit score:

• Excellent: 0%-3%
• Very good: 3%-5%
• Good: 4%-6%
• Fair: 6%-13%
• Poor: 10%-19.9%

If your score is particularly low or you don’t have a credit history, rates can go up to 60%. Average Ontarians can expect a rate of 4.5% to 6%. Also, used cars will carry higher interest rates. You can expect to pay 2%-3% higher interest rates for a used car. Voluntarily providing collateral can also lead to lower interest rates.

Resources and tools for car buyers in Toronto:

• Vehicle registration
• Renew a license plate sticker
• Buy or Sell a Used Vehicle in Ontario