There are a few different options on how to get a car loan and each has it’s own pros and cons. We’ll walk through the three most common and you can see what your options are!
How to get a Car Loan from a Bank:
The major banks in Canada that you can walk into for lending are as follows: Royal Bank of Canada (RBC), Toronto-Dominion Bank (TD Canada Trust), Bank of Nova Scotia (ScotiaBank), Bank of Montreal (BMO) and Canadian Imperial Bank of Commerce (CIBC). These are considered the big five banks in Canada. You can go in there and get a car loan and then pick out your vehicle for either a private sale or from a licensed dealer.
Pros: You probably already deal with one of these banks and it can be integrated into your existing online payments. You have the freedom to select a vehicle you want.
Cons: These banks typically focus on their prime ( good credit ) business and have limited options if you have bad or no credit.
How to get a Car Loan from a Dealership
When you go into a dealership you will usually have the option of having their finance department / business department look after arranging the financing for your vehicle for you.
Pros: It’s simple as you get your financing at point of sale. The dealerships have access to a variety of lenders and sometime will be able to get you a loan through your existing bank.
Cons: A lot of dealerships are setup only to work with good credit customers, which leaves a large amount of Canadians unable to be helped. You are limited to the vehicles they have in their inventory and won’t be able to finance a private sale through them.
How to get a Car Loan from Canada Drives
Canada Drives is a unique company that focuses on connecting customers who have no credit or bad credit with licensed dealers in their area that are willing and able to help them get a car loan.
Pros: 100% No obligation easy online approvals. You will get multiple vehicle and finance options, regardless of whether you have bad or no credit. After applying able to go in and select vehicle and payment.
Cons: This is not for financing private sales.