Car Loans don’t have to be complicated. Here’s everything you need to know about getting a car loan in Canada.
Purchasing a vehicle is one of the largest financial decisions most people will make. In many cases, buyers rely on auto financing to make that purchase possible. In Canada, there are three key factors that determine how your car loan payments are calculated.
The full cost of your vehicle, plus any extra features, protection plans, or additional charges added to your purchase.
The length of time that you intend to pay your car loan. You can generally choose between 12 to 96 months. Typically, longer terms result in lower monthly payments, but have higher interest rates.
The interest rate is the percentage charged by the lender for borrowing the money. It can vary based on the vehicle, loan term, and your individual financial profile.
It is necessary to have a driver’s license and be of legal age of 18 or 19, depending on your province.
Typically you need to be employed and be at your current job for three or more months, however other sources of income can also be accepted.
Generally, the minimum income to qualify for a car loan is $1,800/month before deductions (CPP, EI, etc.). However a co-signer can assist you in obtaining a car loan if you don’t make the minimum monthly amount.
Lenders prefer to take payments out of your bank account each month. A void cheque or a pre-authorization form may be required.
Lenders will need to know your current address, along with your monthly rent or mortgage payments
Lenders prefer to take payments out of your bank account each month. A void cheque or a pre-authorization form may be required.
Securing a car loan can feel complicated and time-consuming, but FreshStartAuto makes the process simple. We help you get pre-approved and guide you through every necessary step to secure financing for the perfect vehicle.
Get pre-approved for the car you want, at a price that you can afford.
©2026 Fresh Start Auto
