How does financing a car work in Canada?
By Kijiji AutosOne of the most important steps in buying a car is figuring out how to pay for it. Car financing is one of the most popular options in Canada as it allows you to purchase a car in affordable installments. But car finance can be a bit confusing, especially if it's your first time buying a vehicle. At Kijiji Autos, we want you to feel confident when purchasing a vehicle, so we've made the process of applying for financing as easy and stress-free as possible. Let's start by answering some common questions:
What's the difference between car financing online vs. at the bank?
The main difference between car financing at the bank vs. online is that bank loans require you to visit the branch in person while Online Financing can be done from the comfort of your home or office. For both in-person bank financing and online car financing, there is a set payment, payment term and interest rate. Another, and often more affordable, option is leasing a car.
How does car financing work?
When buying a car through a car dealership, the dealer typically helps arrange a car loan. After choosing a car, you will need to fill out paperwork, provide documents including proof of income and undergo a credit check. The dealer will then use these details to try and arrange a car loan for you by submitting your application to lenders. Once your application has been approved, you can then decide whether to finalize the deal.
Who qualifies for car financing in Canada?
The typical requirements to qualify for car loan financing in Canada are a valid driver's license; a minimum monthly income starting around $1,500 to $1,800 per month, depending on lender's requirements; a minimum age of 18 or 19, depending on provincial rules; and a credit check.
While banks generally require an excellent credit history to approve a car loan, car dealerships and car financing specialists might be a bit more flexible. If you're a younger driver or new to Canada, a limited credit history could make financing more difficult. (Please check with your lender/dealer/bank to verify their loan requirements. These details are meant as information only.)
Can I finance a used car in Canada?
While we tend to associate car financing with new cars, it is possible to finance a used car. Used car financing options include applying for a car loan from your bank, using a line of credit or financing the car through a dealership.
What are my payment options?
When buying from a dealer, you can apply for financing or leasing online or at the dealership. Online Financing gives you options for choosing your payment frequency, term and down payment.
Easily find your next ride on Kijiji Autos
Search nowThe most affordable electric cars in Canada in 2023
Looking for a budget-friendly electric car? Discover the 12 most affordable electric cars for sale in Canada on Kijiji Autos. Plus, we answer your FAQs about the costs of driving, charging and insuring an electric car.2023 Mazda 3 GX vs GS: What’s The Difference?
The 2023 Mazda 3 is a refined compact car with styling and performance that give it a upmarket feel. In this article we'll break down the differences between the Mazda 3's GS and GX trim packages to help you decide which features you'd want to take or leave, as well as what they'd cost you. Click on the listings on our Search Results page to discover the Mazda 3 GX and GS for sale near you.FWD vs AWD: What’s the Difference & What’s Right For You?
The main difference between FWD and AWD vehicles is the number of wheels their engines are able to send power to. This article will tell you everything you need to know about FWD vs. AWD and help you decide which is right for you.Coupe vs Sedan: What’s The Difference?
Coupes and sedans can both provide you with practical, fuel efficient transport that can also be fun to drive. Both body styles have their advantages and drawbacks depending on what you’re looking for in a new vehicle. In this article we’ll examine the differences between coupes and sedans and define both vehicles with examples.Is it hard to drive an SUV?
if you're stopping yourself from buying an SUV because you're afraid it's more difficult to maneuver, you'll be pleased to know that's not the case. In fact, first-time drivers will find driving an SUV no more challenging than smaller vehicles like sedans, as long as they follow a few tips outlined below.Top 11 SUVs for Winter Driving in Canada
SUVs are some of the best-suited vehicles for winter conditions with a wealth of standard and available features to help you stay in control and get where you're going when the temperature plummets below zero. Here are 11 of the top SUVs for winter driving.Sedan vs SUV: Which one is right for you?
Sedans and SUVs are two of the most popular kinds of vehicle on the market today. This article will examine the different characteristics of sedans and SUVs, highlighting the areas in which each shines and where their shortcomings lie to help you make the right choice on your next vehicle.Your Guide to Hatchback Cars in Canada
Hatchback cars are defined by their tailgate, which raises up to give access to the rear cargo area. Hatchbacks can feature two or four doors plus the tailgate, and follow what's known as a two-box design. The engine compartment at the front of the car makes up one box, with the second comprising the passenger cabin and cargo area.10 affordable convertible cars in Canada
It may be cliché, but there honestly is nothing like feeling the wind in your hair as you cruise down the highway in a convertible with the top down. Here, we explore 10 affordable convertible cars (in no particular order) to inspire you to dive into Kijiji Autos' listings and find your next vehicle.10 popular full size vans for your family or business
Whether you need to transport people or goods, a large van can be a practical choice. You might be wondering who makes full size vans or what is the best full size for family. Here are 10 of the top big vans for sale in Canada in 2022, in no particular order: