Understanding car loans

The Process of Finding a Car Loan Doesn’t Have to Be Confusing or Stressful

The Basics

Payments on car loans are calculated using three components:


The total cost of a vehicle including any fees that the lender or dealership may have for the car loan and any options or add-ons you choose.


The length of time that payments will be made for. Typically terms will run anywhere between 36 Months and 72 Months (Shorter or longer terms are sometimes possible).

Interest Rates

The percentage that the lender is charging for you to borrow money. Interest rates can vary depending on whether the vehicle and the risk the lender perceives in lending the loan.

When you get a car loan you are typically making payments back to a lender rather than to the dealership. That being said, some dealerships will offer in-house financing, which might allow a customer with bad credit to get an auto loan in instances where they otherwise would not have been able to. In this case the car loan is directly with the dealership or “in-house”.

Canada Drives® has partnered with over 300 of these dealers across Canada who offer special financing programs. Through our extensive network we can quickly match you with a local dealership in your area who can help secure financing for you, regardless of your credit history. Get started by completing our application in minutes and get approved in as little as a few hours.

What You Need


Employment or Income

Typically you need to be at your current job for three or more months and make at least $1500/month. Other forms of income, such as certain types of government assistance may also be accepted.


Driver's license

It is necessary to have a valid driver’s license and be the age of majority in the province that you live in. Lenders know that customers are more likely to pay back their car loan if they can legally drive.


Bank Account

The lender wants to be able to take the payment out of your bank account each month. The easiest way to do this is to get a void cheque or stamped pre-authorized payment form.


Current Address

In order to complete your loan documents you must provide the lender with your current address.


Down Payment

Although a down payment isn’t always necessary, it will often help. The less you have to finance, the more likely the lender will be to approve your car loan.

Learn More

Connect With a Dealer

Complete our online application in minutes and we will connect you with a local dealership in your area who offers special financing options for all credit situations. Apply Now.

Contact Canada Drives

If you have any additional questions about car loans do not hesitate to fill out our contact form or call us toll free at 1-888-865-6402. Our loan specialists are here to help!

Apply for Your Car Loan

Your online application takes only 2 minutes to complete and we only ask for information we actually need.

Get approved today

Or feel free to call us at 1-888-865-6402