Car Deal Canada

Car Loan Alternatives

Car Loan Alternatives

Getting approved for an auto loan through a mainstream lender like a bank or credit union can be a frustrating process, especially if you have less-than-perfect credit or limited income. You may get denied, or only qualify for a loan with extremely high interest rates. However, there are several alternative auto financing options beyond traditional loans that may work better for your situation. This comprehensive guide will explore those alternatives for buying a car with bad credit or no credit in detail, along with tips for qualifying and securing the most affordable terms. We will cover options like personal loans, peer-to-peer lending, leasing, credit cards, buy here pay here dealers, and more. Our goal is to provide an overview of each type of alternative car financing so you can evaluate the pros and cons and find the best solution to fit your budget and financial needs.

Get Pre-Qualified in Under 60 Seconds

All Credit Approved and 0 Money Down Options Available


Use a Personal Loan

One alternative to a traditional auto loan is financing your car purchase with a personal loan. Personal loans can offer several benefits compared to dealer or even bank auto financing:


  • Lower interest rates – Personal loans tend to have lower interest rates than specialized car loans, especially for those with poor credit.
  • Flexible usage – You receive the loan funds upfront and can use them for any purpose, including buying a used car in cash.
  • Income-based approval – Personal loan approval is focused more on your income, existing debts and credit score. They rely less on the car’s value as collateral.


With a personal loan, you can shop for the car you want at any dealership, then use the loan funds to pay for the vehicle outright. This gives you flexibility in negotiating the best price without needing dealer financing. Since personal loans have fixed interest rates and terms, it can also be easier to budget your monthly payment amount.

Just be sure to only borrow what you can comfortably afford to repay. Personal loans also charge “simple interest”, meaning interest accrues daily on the original principal. So it’s best to pay down the balance as quickly as possible.


Lease a Car

Leasing a car can be an affordable alternative to getting an auto loan and buying a vehicle. With a lease, you essentially rent the car for a set period of time, usually 2-4 years. At the end of the lease term, you return the car instead of owning it. There are several advantages to leasing over buying with a traditional car loan:


  • Lower monthly payments – Since you are only paying for the vehicle’s depreciation during the lease term and not the full purchase price, monthly payments are typically much lower compared to loan payments.
  • Always drive a new car – Lease terms are short enough that you can get a new car every few years. This allows you to always have a newer model with the latest features.
  • Flexible credit requirements – Approval for a lease depends more on your income rather than your credit score. Standards are more lenient than auto loan requirements.


While leasing a car does not build equity like purchasing, the lower monthly costs and flexible credit make it ideal for some budgets. It gives you the benefits of driving a new vehicle without the long-term commitment of an auto loan.


Peer-to-Peer Lending

Peer-to-peer lending, also known as P2P lending, is an alternative way to finance a car purchase. With P2P lending, borrowers are connected directly to individual lenders through an online platform. This allows borrowers to get loans that may not be offered by mainstream banks and lenders.

Some key benefits of using P2P lending for a car loan include:


  • Potential for lower interest rates – P2P loans often have lower rates compared to traditional car loans, especially for borrowers with less-than-perfect credit.
  • Flexible credit requirements – Income, debt, and other factors are weighed more heavily than just a credit score.
  • Direct connection between borrowers and lenders – The peer-to-peer model cuts out the middleman and overhead costs of banks.


While P2P lending is not as widely available in Canada compared to other countries, it remains an option to explore if you need flexible financing for a car and don’t qualify through mainstream lenders. The peer-to-peer model offers the potential for more affordable rates and loan approval based on your full financial profile.


Credit Card Cash Advance

Using a credit card cash advance to purchase a car can provide fast access to funds when needed. Since the credit limit is already established, the cash can be obtained right away just by making a withdrawal at an ATM, bank, or credit union. This avoids the time it takes to apply and get approved for a traditional loan.

The convenience of quick cash makes a credit card cash advance useful when you find the perfect car but need the money immediately. Rather than losing out on the deal because you don’t have an auto loan in place, the cash advance allows you to make a competitive offer and finalize the sale quickly.

Credit card cash advances also give you freedom in spending since the funds aren’t tied to a specific car. The loan stays with you personally rather than being attached to the vehicle title. This provides flexibility if you need to use the money for other purposes down the road.

However, the costs of a credit card cash advance are very high. Interest rates are normally above 20% and start accruing immediately. There are also transaction fees that can be 3-5% of the amount advanced. And unlike a purchase, there is no grace period so interest begins accumulating right away. This can make the overall repayment very expensive.

Due to the high rates and fees, a credit card cash advance is generally best used as a last resort for short term needs. While it can provide quick access to cash, the interest expenses make it expensive for financing an entire car purchase over many years. Thoroughly compare costs before using credit card funds to buy a vehicle.


Consider a Co-Signer

If your credit score or income is too low to qualify for traditional financing, adding a co-signer to your auto loan application can help. A co-signer agrees to be equally responsible for the loan payments with you. Since the lender considers the co-signer’s credit and income in addition to yours, it improves your chances of approval and can result in a lower interest rate.

The main benefit of having a co-signer is it allows you to become an authorized user on their credit history. As an authorized user, their account will be added to your credit report which instantly raises your score. Over time as you make consistent on-time payments, you’ll build your own positive credit profile.

While a co-signer provides a lot of advantages, it also comes with risks. If you are late with payments or default entirely, it will negatively impact both your credit and your co-signer’s. And they will be held fully accountable for the remaining loan balance. So only choose a co-signer you completely trust and ensure you can confidently make the monthly payments.


Buy Here Pay Here Dealers

Buy Here Pay Here (BHPH) dealerships offer an alternative financing option for those with poor credit or no credit history. At BHPH dealers, customers make payments for the vehicle directly to the dealer that sold them the car.

These dealerships provide in-house financing, so they do not rely on outside lenders to approve loans. This makes it possible to get financing despite credit challenges that would lead to denial from a traditional lender.

The downside is that BHPH loans typically have higher interest rates and require a large down payment, often 20-30% of the car’s price. The lender can also install GPS or starter interrupt devices on the car if payments are missed.

For those with extremely poor credit and few options, BHPH can make it possible to get necessary transportation. But interest rates over 20% and rigid payment terms mean this should only be considered as a last resort financing method.


Down Payment Assistance

One alternative for financing a car purchase with bad credit is to apply for down payment assistance. There are programs available that provide funds specifically to help cover the down payment on a vehicle. This can help buyers with challenged credit get approved for a loan since the down payment helps offset the risk.

Down payment assistance programs are offered by nonprofit organizations, credit unions, manufacturers, and even some state and local governments. Most will have eligibility requirements based on your income, expenses, credit, and debt-to-income ratio. The amount of assistance available varies but can range from a few hundred to a few thousand dollars.

The benefit of down payment assistance is you may qualify for an auto loan that you would otherwise be denied for without the extra funds to put down. It also results in lower monthly payments since your loan amount is less. Just make sure to read all requirements and that any loan you use the down payment on fits within your budget.


Rent-to-Own Programs

Rent-to-own car programs allow you to drive and essentially rent the vehicle while making payments over an agreed term. Then, at the end of the rental period when all payments have been made, you own the car free and clear. These types of agreements are offered by some dealers and third party companies.

The main benefit of rent-to-own agreements is that you’re able to obtain and drive the vehicle immediately without having to qualify for traditional financing. Payments are made weekly or monthly like a standard lease, but go towards the purchase price over time.

At the end of the predetermined term, after making the full payment amount through your rent, you’ll own the car. These programs work well for those that can’t get approved for a regular auto loan but need transportation.

Just be sure to read the full contract and understand all fees involved before signing. You’ll want to confirm there is no early termination penalty if you complete payments early, and that all rental amounts go towards the car’s purchase price.


Trade-in to Lower Payment

If you currently own a vehicle, trading it in when purchasing your next car can help lower your monthly payment. Dealers will appraise your trade-in and deduct its value from the selling price of the new car you want to buy. This instantly lowers the amount you need to finance. For example, if your trade-in is worth $5,000 and the car you want costs $15,000, you only need to get a loan for $10,000. Your monthly payments would be calculated based on that lower $10,000 loan amount.

To maximize your trade-in value, make any needed repairs and clean it thoroughly before bringing it to the dealer. Also, do your research on current market values for your particular year, make and model. Edmunds, Kelley Blue Book and NADA Guides all provide free online trade-in value estimators. Aim for the top range of value so you can negotiate the appraisal up as much as possible. That will lower your loan amount even more. Using equity you’ve built in your current vehicle is an excellent way to reduce the monthly payment on your next car purchase.


Compare Lender Rates

One of the best ways to get an affordable car loan is to compare interest rates from multiple lenders. Don’t just accept the first rate you are offered – take the time to shop around. Getting rate quotes from banks, credit unions, online lenders, and your own pre-approval can give you leverage to negotiate the lowest rate.

Online lenders like Lightstream and PenFed offer highly competitive rates, while local credit unions may offer discounts for members. If you have existing accounts, your own bank may give you the best loyalty rates. Getting pre-approved locks in a rate while giving you power to negotiate with dealership financing.

Having multiple loan offers allows you to pit lenders against each other to lower rates. Even a small rate difference of 1% can save thousands over the loan term. Be sure to compare both purchase and refinance rates to find the best option. Shopping around for the lowest rate takes extra time upfront but pays off exponentially.


Improve Credit Score

One of the most effective ways to increase your chances of getting approved for an auto loan is to work on raising your credit score before you apply. Lenders view applicants with credit scores of 720 or higher as lower risk, so they offer better rates. If your score is below 650, it will be very difficult to qualify for a traditional loan.

To boost your credit score:


  • Pay all your bills on time each month
  • Pay down balances on credit cards and other revolving debt
  • Avoid applying for new credit before your auto loan application
  • Check credit reports for errors and dispute any inaccuracies
  • Become an authorized user on someone else’s credit card with good payment history


You should start checking your credit reports from Equifax and TransUnion at least 6 months before you plan to apply for an auto loan. This gives you time to implement changes to improve your score. Having a credit score of 700 or higher can mean thousands of dollars in savings on interest over the life of your car loan.


Make a Large Down Payment

One of the best ways to get approved for the lowest auto loan rate possible is to make a large down payment, ideally 20% or more of the vehicle purchase price. The more money you put down upfront, the lower the amount you have to finance. This means your monthly payments will be lower, and you’ll pay less interest over the loan term.

Lenders view borrowers who make large down payments as lower risk, since they have more equity in the vehicle right away. This allows lenders to offer better rates compared to financing 100% of the car’s cost. For example, on a $20,000 car loan a 20% down payment of $4,000 lowers the amount financed to $16,000. That can reduce a 6% interest rate loan payment by over $60 per month and $2,000 in interest paid over a 5 year term.

In addition to better rates, a larger down payment provides other benefits like lower chance of becoming underwater on the loan. It also shows you are financially committed to the vehicle purchase. While not everyone can afford 20% or more down, maximizing your down payment within your budget can help secure the most favorable auto financing terms possible.


Choose a Shorter Term Length

One of the biggest factors that determines the total interest paid on an auto loan is the loan term or length. Most car loans range from 3-7 years, with 5-6 years being the most common.

However, choosing a shorter 3 or 4-year loan term can save you thousands of dollars in interest charges over the life of the loan. This is because the amount of interest paid is directly tied to how long you take to repay the principal balance.

For example, on a $25,000 loan at 5% interest:


  • A 5-year loan would have monthly payments of $471 and total interest paid of $2,356
  • A 3-year loan would have monthly payments of $743 but total interest of only $1,272


While the 3-year term comes with higher monthly payments, you end up paying $1,084 less in interest overall. And you own the vehicle free and clear faster.

Just make sure the higher payments still fit within your budget. But if you can afford it, choosing a 3-year term is one of the best ways to save on interest when financing a car.



When looking to finance a car purchase, it’s important to consider all of your options rather than just going straight to the bank or dealer for a traditional auto loan. This guide has outlined several alternative financing methods that each have their own pros and cons. Key points include:


  • Personal loans offer lower rates but require strong credit and income.
  • Leasing provides lower monthly payments but restrictions on mileage and condition.
  • Peer-to-peer lending connects individual borrowers and lenders.
  • Credit card cash advances provide quick funds but very high rates.
  • Other options like co-signers, down payment assistance, and buy here pay here can help those with challenged credit.


Evaluating the alternatives to standard car loans can often help you find more affordable payments or flexible terms that work for your budget and financial situation. Having more financing options empowers you to secure the best loan or lease for your needs. While traditional lenders remain a fine choice for many, it pays to explore all the possibilities before committing to a car payment plan.


Get Approved Today

See if you qualify in under 60 seconds

Questions About Car Loan Alternatives

Traditional car loans from banks and dealerships are not the only way to finance a vehicle purchase in Canada. Here are some alternatives worth considering:


Use a personal loan – Personal loans typically have lower interest rates than auto loans and can be used to buy a car. The repayment terms are shorter, usually 2-5 years. Credit unions and online lenders offer competitive rates on personal loans.


Lease instead of buying – Leasing has lower monthly payments compared to financing and may require little or no down payment. At the end of the lease, you return the car instead of owning it. Lease terms typically run 2-4 years. Shop around for the best lease deals.


Try peer-to-peer lending – Online peer-to-peer lending connects individual borrowers and investors willing to fund loans. Interest rates may be lower than traditional lenders and you can likely qualify with fair credit. Popular P2P lending platforms in Canada include Lending Loop and CreditCube.


Use a secured loan – Secured loans require you to pledge an asset like savings or property as collateral. This allows those with poor credit to qualify and get better rates. Some credit unions offer secured auto loans using savings accounts or GICs as collateral.


Buy from independent dealerships – Independent used car dealers are often more flexible than franchised dealers in approving financing for applicants with poor credit or unique situations. Shop around for a dealer willing to work with you.


Consider maker/captive finance companies – Many car manufacturers have their own finance divisions offering promotional loans and leases. This can make their vehicles more affordable to purchase compared to standard auto loans.

Here are some of the best options for low-interest auto loans in Canada:


Desjardins Bank – offers very competitive new and used car loan rates to borrowers with good credit scores. Their auto loan interest rates start from 2.99%.


Meridian Credit Union – provides auto loans with interest rates as low as 3.5% for both new and used vehicles. They offer flexible terms up to 8 years.


Scotiabank – promotes car loans with rates starting from only 2.99% for certain makes/models bought from select dealers during promotional periods.


MOTUS Bank – specializes in financing vehicles. Their interest rates are as low as 3.99% with no application fees or prepayment penalties.


Laurentian Bank – offers one of the lowest interest rates in Canada on 4-year new car loans at 1.9% during special promotions. 60-84 month loans are also available.


For the absolute lowest interest rates, those with great credit scores should compare offers from multiple banks, credit unions and dealers. Rates under 2% are possible.

If you have bad credit, there are still financing options available to purchase a vehicle in Canada:


Subprime loans are specifically tailored for those with credit scores below 600. Interest rates are higher but more attainable for borrowers with bruised credit.


Secured car loans require collateral like savings or property to secure the loan. This allows lenders to take on more risk for bad credit applicants. Interest rates are typically lower than unsecured loans.


Buy Here Pay Here (BHPH) dealers offer in-house financing to buyers with poor credit. Interest rates are very high but they may approve applicants banks would deny.


Co-signer loans allow a relative or friend with good credit to co-sign the auto loan and improve your chances of approval. Make sure the co-signer understands their obligations.


Down payment assistance programs offered by some dealers help subsidize the down payment for those with bad credit. This improves the loan terms and chances of approval.


Shop multiple subprime lenders to compare interest rates and loan terms. Improving your credit score can open up cheaper financing options too.

When applying for auto financing from a bank, dealership or other lender in Canada, having these documents ready will help ensure a smooth application process:


Proof of income – Recent pay stubs, T4, tax returns, proof of pension, etc.

Government-issued ID – Driver’s license, passport, permanent resident card or other ID.

Proof of address – Utility bill, bank statement, rental agreement with your name and current home address.

Down payment – Proof you have the required down payment amount from current bank statements, gifted money letters, etc.

Cost estimate – Bill of sale, vehicle quote or printout showing exact vehicle details and price.

Current vehicle ownership – Registration and financing details if trading in or selling a current vehicle.

Insurance quote – Proof of insurance coverage for the vehicle in your name.

Having these documents ready demonstrates credit-worthiness and allows the lender to swiftly process the application. Ensure all information provided is complete and accurate.

When financing a car purchase in Canada, expect to pay the following common fees and charges:


Interest – The cost of borrowing money. Rates vary greatly based on credit, loan term, etc.

Application fee – A one-time fee to apply for the loan, typically $75-$150.

Origination fee – An upfront fee charged by the lender to arrange the loan, 0.5-2% of loan amount.

Documentation fee – Charged to prepare all paperwork, averaging $150-$300. Can sometimes be negotiated away.

Property tax – In some provinces annual vehicle property taxes must be paid upfront and included in the loan amount.

Dealer fees – Dealers have discretion to charge admin fees; shop around as these vary greatly between dealers.

Ask the lender to provide a full breakdown of all fees in writing before signing so there are no surprises. Carefully compare loan offers as the fees can really add up.

For borrowers struggling with bad credit or other issues affecting approval chances, the easiest auto loans to qualify for in Canada are:


Secured car loans – These require an asset like savings or property be used as collateral for the loan. This gives lenders added security, allowing higher approval rates. Interest rates are also typically lower than other bad credit loan options. Any credit union in Canada offers secured auto loans.

New car loans – Since new vehicles depreciate slower and can be repossessed and resold more easily, lenders view new car loans as less risky than used. This leads to higher approval chances. Interest rates will also be lower.

Co-signed loans – Having a relative or friend with good credit co-sign the auto loan can significantly increase the chances of approval for borrowers with poor credit. Make sure the co-signer understands their obligations before agreeing.

Buy Here Pay Here (BHPH) dealer financing – While very expensive, BHPH dealerships cater to borrowers unable to secure financing elsewhere. Approval is easier but interest rates are sky-high.

Canadians deciding how to finance their next vehicle face this common dilemma – is it better to lease or take out a loan to buy? Here are the main pros and cons of each option:


Leasing Pros

– Lower monthly payments

– Drive a newer car more often

– Warranty coverage for most of lease term

– No hassle selling or trading in the vehicle after


Leasing Cons

– Never own the car

– Strict mileage limits and wear-and-tear clauses

– Charged excess mileage and damage fees when returning vehicle

– Gap insurance often required adding to cost


Buying Pros

– Build equity as the loan principal is paid off

– No mileage restrictions

– Freedom to sell or trade the car anytime

– Lower total cost over longer ownership period


Buying Cons

– Higher monthly payments

– Stuck with repair bills after warranty expires

– Must go through selling process when ready for a different vehicle

– Risk of owing more than car is worth if financing over very long term

Weigh the pros and cons relative to your budget, driving needs and plans to determine if leasing or buying is the better option.

The typical auto loan application process in Canada involves these key steps:


1. Pre-approval – Submitting an online or in-branch application to allow a soft credit check and get pre-approved for an estimated loan amount before visiting dealers.

2. Vehicle Selection – With loan pre-approval in hand, shop for the new or used car you want. Only look at vehicles in your approved affordability range.

3. Final Approval – Return to the lender for final purchase approval after selecting the specific vehicle, with details like VIN, mileage, sale price to determine final loan terms.

4. Finalize Paperwork – Review and sign the final loan agreement paperwork and verify all fees charged match what was disclosed to you. Leave with loan documentation and funds to purchase the vehicle.

5. Insurance & Registration – Arrange mandatory insurance coverage on the vehicle in your name. Pay any registration fees to license the vehicle.

Following these key steps will make for an organized, stress-free auto financing process.

If your auto loan application gets rejected in Canada, here are some alternative options to explore so you can still get the car you need:


Improve your credit – Get free copies of your credit reports and work over the next 3-6 months to improve your score by paying down debts. Then reapply for improved loan terms.

Ask a relative to co-sign – A family member or friend with good credit can greatly boost your chances by co-signing the auto loan. Make sure they grasp the obligation they are undertaking.

Try subprime lenders – Specialty lenders that cater to borrowers with bad credit will likely approve a car loan, albeit at a higher interest rate.

Lease instead – Leasing has lower qualification requirements than financing for those with poor credit. This can get you driving the vehicle you want despite loan denial.

Use a secured car loan – Pledging an asset like savings provides security allowing approval of borrowers with bruised credit. Rates will be better than unsecured loans.

Buy an inexpensive used car with cash – Set your sights lower and buy a very affordable used vehicle you can purchase outright in cash. Then work on improving credit to finance a nicer car down the road.

With some persistence and creativity, options exist to get vehicle financing even following loan denial.

As of January 2024, the average interest rate offered on new auto loans from Canadian banks and lenders is approximately 5.99% for terms up to 72 months. The average used car loan interest rate is approximately 7.69% for terms up to 72 months. Average rates on new cars were up nearly 1% compared to a year ago while used car loan rates climbed by 1.5%.

Follow these key tips to help secure the lowest available interest rate when financing your next auto purchase in Canada:




– Maintain an excellent credit score above 720

– Shop for competing loan offers instead of accepting the dealer’s first offer

– Opt for a shorter loan term of 4-5 years instead of 6-8 years

– Provide a down payment of at least 20% of the vehicle purchase price

– Choose a fuel-efficient, high safety rating new car that qualifies for promotional rates

– Consider manufacturer/captive finance companies which often subsidize rates

– Have evidence of stable income and long-term employment

– Only finance the base price without adding extras like extended warranties into the loan


The very best rates below 2% are reserved for those with stellar credit borrowing no more than 60% of the vehicle value over short terms on select new models.

Several car companies and dealers periodically offer 0% interest financing promotions in Canada. To qualify for these too good to be true no interest auto loans, you must meet criteria like:




– **Credit score** – A FICO score above 700 or an average of the credit bureau scores exceeding 680 is typically the minimum score threshold set. Some set higher bars nearing 750.


– **Debt levels** – Total monthly debt obligations cannot exceed 45-50% of gross income to prove affordability. Debt-to-income ratio caps may apply.


– **Down payment** – At least 15-20% down payment is required in most cases to qualify for 0% financing offers. Large down payments reduce default risk.


– **Loan term** – 0% financing terms max out at 5 years in most cases. Borrowers must be able to pay off the loan before interest kicks in.


– **Vehicle MSRP** – Interest-free loans only apply on select new vehicles, usually lower-priced economy car models preferred by the automaker to drive sales volume.


– **Citizenship** – Must be a Canadian citizen or permanent resident. Foreign visa holders normally do not qualify.


In addition to great credit, you must have the income and down payment required and choose the right vehicle model and loan term to score elusive 0% interest car financing.

Assuming a car lease or loan from another person is possible in Canada following these steps:




**1. Get lender approval** – Apply to the financing institution that issued the original loan or lease to take over the payments. This involves completing full application forms and credit checks. You must qualify based on affordability and credit score.


**2. Pay transfer fee** – The lender will charge a few hundred dollars in fees to process the payoff and transfer the financing into your name.


**3. Sign new financing contract** – After approval, you will sign fresh paperwork with the same terms which transfers legal responsibility for the lease or loan to you.


**4. Insurance & registration** – Update the vehicle registration and insurance paperwork to show you as the new owner/lessee.


**5. Owe sales tax** – In some cases if sales tax was not charged fully to the original purchaser, the balance owing may need to be rolled into your new loan amount.


Before taking over someone else’s auto financing, carefully review all documentation to understand the existing loan balance, payments owed and vehicle condition to avoid surprises.

According to data from the credit bureaus in Canada, the average auto loan term nationally is approximately 72-84 months, or 6-7 years. The average new car loan term reached a record 85 months in 2022. Used car loan terms average 6-7 years. Auto loans with longer terms beyond 6 years have grown very popular allowing lower monthly payments but result in paying significantly more interest over the full repayment period.

Getting pre-approved for auto financing in advance provides key advantages in Canada including:


– Gives you negotiating power by separating financing from dealer negotiations

– Locks in an interest rate allowing you to budget payments accurately

– Speeds up the purchase process at the dealership to only 1-2 hours

– Allows you to solely focus on getting the best price on your desired car

– Prevents wasted time shopping for cars you cannot realistically afford


There are two easy ways to get pre-approved for a car loan:

  1. Apply online or in-branch at your bank or preferred lender
  1. Access through an online-only lender like Mogo or loan search marketplace


To qualify for pre-approval, you will need to pass a soft credit check allowing the lender to assess affordability and ability to repay the loan amount.

Paying off a car loan ahead of schedule in Canada attracts few if any penalties nowadays. Here is what to expect:


No prepayment penalties – Canadian law banned lenders from charging penalty fees for early mortgage and auto loan payouts effective 2018.

Interest savings – Paying your auto loan faster stops further interest from accruing resulting in major savings over the loan term.

Faster equity building – When you make extra or lump sum payments, more principal gets paid off with each payment you make to accelerate the equity in your vehicle.

Small administrative fee – Some lenders may charge a token $50-$100 processing fee for early payout but savings far outweigh this minor cost.

Paying down an auto loan early or in full at any time results in nothing but savings for Canadian borrowers. Take advantage of extra cash to get out of debt faster penalty-free!

Unemployed car shoppers in Canada do face more limited financing options but some lenders may still approve auto loans with no job under certain conditions like:


Large down payment – Paying at least 35-50% down signals lower default risk allowing no job approval.

Co-signer – An employed relative/friend with good credit willing to co-sign the auto loan can help secure approval.

Secured loan – Pledging assets worth more than the loan value makes approval without income possible for some borrowers.

Recent job loss

Get Approved Today

See if you qualify in under 60 seconds