Car Loans in Ontario, Canada


If you’re in the market for a new or used car or if you’re looking for a truck or trailer, you’re probably also thinking about getting an auto loan.

Financing a car may seem intimidating but it’s not difficult to apply for an auto loan in Ontario.

Once you’ve completed an application, which can often be done completely online, you can receive the funding you need for your auto purchase in a few days.

Facts about Car Loans in Ontario

Auto Loan Rates

The average rate for an auto loan for a new vehicle in Canada is 4.38%, according to Statistics Canada as of September 2019.

Loan Terms

Over half of loans for new car purchases have terms of amortization longer than 84 months. These longer terms help promote car sales in Canada, which means that in general, Canadians are about five times more likely to take out a long-term car loan than Americans.


Leasing instead of purchasing is a way to get a better interest rate and monthly payment, as you’re only paying for part of the car’s value. Of course, you don’t own the vehicle at the end of the lease term and must return it to the dealer or convert your lease to a purchase.

Your Rights as an Ontario Citizen

You have strong rights that will be protected when you purchase a vehicle from any OMVIC-registered dealership in the province of Ontario. The Motor Vehicle Dealers Act states that dealers must reveal the total cost of a vehicle, as well as disclosing the entire history of the vehicle and its current condition, which includes its age, make, model, and mileage, as well as any accidents it was involved in.

If a dealer fails to disclose all the information they’re required to by law, you are entitled a full refund within 90 days if you contact the Motor Vehicle Dealers Compensation Fund.

Availability of Loans

According to the Financial Consumer Agency of Canada, one quarter of all auto loans have subprime rates.

Many people think that it’s not possible to get a car loan if you’re self-employed, or if you have bad credit or no credit at all. However, that isn’t the case.

Self-employment is no barrier if you can provide proof of income. And the same goes for poor credit or a lack of credit history: providing proof of income can get you the loan that you need, as both dealers and lenders recognize the importance of purchasing a car. It’s often a person’s first large purchase, before their credit history is established, and responsibly paying off a car loan is a good way to begin building that history.

Frequently Asked Questions about Car Loans

Where can I get auto financing in Ontario?

There can be a few complications when buying a new car in Ontario. Prices tend to be high, and car insurance in Ontario is the most expensive in the country. But still, a car is a necessary part of daily life for many Ontario residents. It can be difficult to purchase a car on your own, especially if it’s your first such purchase. It’s usually a family’s second-most expensive purchase after a home. Fortunately, even with a less than perfect financial situation, it’s possible to finance an auto purchase in a few different ways.

Car dealers can usually set up financing for you. Vehicle manufacturers have financing divisions that offer loans for their customers, and dealers also have relationships with banks or credit unions that can provide financing. There are also independent auto financing companies that work with dealerships to provide loans.

You can also secure your financing on your own before making your purchase. If you have an established relationship with a bank or credit union, that’s often a good way to get a loan. You can also find auto loan options online.

How do I get approved for an auto loan?

In order to be approved for a car loan, you’ll need to submit an application with the necessary supporting documents, which will include your basic information, credit details, and income.

The lender will review your application, using your credit score and income to determine whether you’re qualified for a loan. The rate they offer will be dependent on your credit score.

How can I get an auto loan if I have bad credit?

Vehicle financing usually depends on having a positive credit history and an income that will support consistent payments. Your credit score will be a main consideration in whether a lender considers you an acceptable investment risk.

In general, you’ll need to have a decent credit score and an income of at least $1200 a month to qualify for most loans. However, there are options available for people without a good credit score.

If you don’t qualify for a traditional auto loan from a bank or credit union, you can discuss other options with the dealer and with alternative lenders, such as online-only auto loan providers.

What are auto loan rates like in Ontario?

It’s difficult to give exact figures for auto loan rates because they vary based on several factors, including your credit score and the age of the vehicle you’re buying. In Ontario currently they vary from around 3% to 30%. New cars typically can be financed at better rates than used vehicles. And of course, the total amount of interest you’ll pay is also dependent on the term of the loan.

If you have a fair or better credit score, it’s possible to get rates of 1% or lower for a new car, or around 7% for a used car. If your credit score is lower, however, you’ll get rates of at least 10% on a new car, with higher rates still for a used car. Lenders also typically don’t provide financing for cars that are over 7 years old.

Can I still get a loan if I want a used car?

Yes, you can usually get a loan for a used car, assuming the vehicle you’re interested in isn’t too old. Interest rates for used cars are going to be higher than for new cars, starting around 5% if you have good credit, and can be as high as 30%.

What You Need to Know When Applying for an Auto Loan

There are several things that are important to keep in mind when you’re ready to apply for an auto loan, whether you’re buying new or used.

Overall Cost

When you’re looking at a vehicle, you should consider the APR on your loan and calculate that into the total cost of the car. Interest adds up quickly, especially with the higher rates that come with a used vehicle. Usually the lower purchase price makes up for it, but it’s important to do that calculation to be sure you understand the total cost of the vehicle.

Financial Responsibilities

A car loan gives you another regular monthly payment that you’ll need to include in your budget. Lenders assess your income when determining what terms they can offer you, but that doesn’t take your discretionary spending into account. You may need to make some adjustments to your spending habits to keep up with your car loan payments.

Car Insurance

Finally, it’s important to consider insurance payments as well. In Ontario, car insurance can be quite expensive, so if you don’t already have a car and insurance, you’ll need to account for that when determining how much you can afford to spend on a vehicle.

Apply Today!

When you work with Lend for All, we make sure that your bank account has the money you need to get the job done.  We also ensure you have the money accessible to you when you need it most. It doesn’t matter what you need the money for. It could be for a wedding gift, to fix a broken window, to pay for a kitchen renovation, to help you meet payroll in your business during a slow month – it doesn’t matter!

If you have poor credit and maxed-out credit cards, we can get you back on the right track by providing loans and interest rates that work for you. We are an alternative financing solution, and along with our Artificial Intelligence-enhanced platform, our optimized process will help you qualify no matter your credit score.

Learn more about Bad Credit Loans in Canada by calling us toll-free at 1-800-532-4505. Or, if you prefer, simply start the process off right away by filling out our easy-to-use form! Before you know it, you could have the money you need in your bank account, and you can focus on what’s important: living your life!

Car Loans By City in Ontario

TorontoOttawa, Mississauga, Brampton, London, Windsor, Hamilton, Markham,  Kitchener, Barrie, Oshawa, Burlington, Oakville, Kingston

Lend For All     1 King St W Suite 4800 -24 Toronto, ON M5H 1A1   |  +1 800-532-4505

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