Pay Your Loan Difference Over Time

Why Do I Need to Pay the Difference?

If you still have a loan on your vehicle, the remaining balance must be paid before ownership can be transferred to a new buyer.

Sometimes, the amount you still owe is higher than your vehicle's current market value. For example, if your vehicle is worth $30,000 but your remaining loan balance is $40,000, there is a $10,000 difference that needs to be paid to complete the sale.

Traditionally, this difference would need to be paid in full before you could sell your vehicle, but with Canada Drives you have another option:

Pay Your Loan Difference Over Time

You do not need to pay your full loan difference upfront to sell your vehicle.

Through Canada Drives’ exclusive lending partnerships, eligible customers can apply to finance the difference and repay it over time. So you can spread the cost into manageable monthly payments while completing the sale of your vehicle today.

Why Choose 'Pay Over Time'?

1. Avoid a Large Upfront Payment

Instead of coming up with thousands of dollars before your inspection appointment, you may be able to sell your vehicle now and repay the difference through manageable payments.

2. Reduce the Amount of Debt You Carry

For example:

Amount owing: $40,000

Canada Drives offer: $30,000

Loan difference: $10,000 

By selling your vehicle, you can replace a $40,000 vehicle loan with financing for only the $10,000 difference.

Interest rates matter, but the loan amount is often the biggest contributor to how many dollars go toward interest each month. Even if the new loan has a different rate, interest would be calculated on a much smaller balance.

3. Capture Your Vehicle’s Value Today

Vehicles generally become less valuable as they get older and accumulate more kilometres. Selling now allows you to capture its current value rather than continuing to carry the vehicle while it depreciates.

4. Eliminate the Cost of Keeping the Vehicle

Selling can eliminate expenses such as insurance, maintenance, servicing, registration and depreciation.

Together, these costs can often add up to $5,000 or more per year, even when the vehicle is not driven regularly.

5. Keep Your Financing Options Open

'Pay Over Time' allows you to complete the sale now rather than waiting until you have arranged another source of financing.

Afterward, you can still explore paying off the loan or refinancing it through your bank or another lender.

Canada Drives Makes It Simple

Canada Drives coordinates the vehicle sale, payout of your existing loan and financing of the remaining difference through one simple process.