The Canadian used car market is very robust at the moment. Whether you're looking for an SUV, truck, or passenger car, the advantages of buying a used vehicle are many:
It may surprise you to learn that used cars aren't only available from private sellers. Dealerships and online retailers sell used cars too and offer a variety of auto finance options. Below we list the pros and cons of buying a used car from dealership (or retailer) or private seller.
Dealerships / Online Retailers |
Private Sales |
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Dealerships / Online Retailers |
Private Sales |
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If you choose to buy a car from a private seller, there will be less auto finance options available to you. You either need to pay cash or meet with your bank manager to discuss a loan. If your credit is less than perfect, getting a loan from the bank could be an obstacle.
On the other hand, if you go through the dealership or online retailer, not only will you enjoy the peace of mind that comes with professional inspection and servicing, these professionals will have more finance options to help get you approved for your car loan.
Banks are less likely to approve you for used car financing if your credit is low. However, some dealerships and retailers are connected with lenders that specialize in helping customers facing bad credit or no credit. Canada Drives is one such provider. No matter what credit situation you're facing, Canada Drives can pre-approve you and connect you with the best deals on used cars in your town or city.
If you decide to choose a used car loan, always go through a reputable retailer. Avoid ‘buy here pay here’ lenders who don’t report to the credit bureaus, meaning your credit score doesn’t benefit from your loan. 'No credit check' car loans 'with guaranteed approval' DO NOT offer the best used car finance rates. The price you pay for the loan approval is simply not worth it.
If bad credit is a concern, Canada Drives can connect you with some great vehicles and auto financing options. We do check credit but we're also one of your best chances of getting approved for your next vehicle if you have less-than-perfect credit. Get preapproved today for the car you want while keeping payments affordable and strengthening your credit.
Read More: No Credit Check Car Loans with Guaranteed Approval: Fact or Fiction?
Firstly, keep in mind that 0% financing offers are usually reserved for customers with excellent credit, or extremely close to it!
It’s possible to get 0% financing on a used car—but it's rare. Banks, credit unions, and other lenders don’t offer 0% financing on cars, only car manufacturers do. Keep an eye out for manufacturer deals and offers and ask your dealer about it.
Today, certified pre-owned vehicles are also eligible for special financing rates from certain manufacturers like Toyota and BMW. These rates make it affordable to buy a used car – even more so than a new car. Even if you don’t qualify for the lowest rate due to credit issues, the lower initial purchase price can still make buying a pre-owned car loan more affordable than new.
And for most models that still have new car warranty in effect, used car loan terms can be as long as a new car, up to 84 months or longer.
Because the depreciation has slowed, used car buyers will often be able to start out in a positive equity situation or reach that point in mere months, not years.
And if being protected against unexpected expenses like car repairs is important, extended warranties are available and can be tailored to your needs. It’s easy to add this cost to most used car loans too.
With hundreds of certified used vehicles in our inventory, Canada Drives simplified car shopping for all Canadians. Whether you have bad credit, good credit, or no credit, you can save time and money when you buy and finance your new car 100% online. Take advantage of our flexible financing options, free CARFAX reports, and 7-day Love It Or Return It moneyback guarantee!
Get started and find your perfect ride today!