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Car financing allows you to borrow funds from a lender to pay for a new or used vehicle and repay the loan through manageable monthly installments. This term covers several loan types designed to suit different needs.

To find the right financing option, start by deciding how much you need to borrow and the loan term (how long you’ll take to pay it back). You may also reduce the loan amount by providing a down payment. Once approved, you’ll repay the loan in fixed monthly amounts, which include interest, over a term typically lasting 1 to 5 years. Depending on the arrangement, the loan may be secured against the vehicle itself.

1. Bank or Credit Union Loans
These loans are offered directly by banks or credit unions, often with competitive interest rates for borrowers with strong credit scores. With pre-approval for a specific amount, you can shop within your budget, and the loan is repaid in predictable, fixed installments. While the interest rates may be lower than dealership financing, the vehicle usually needs to meet specific criteria, such as age or condition. This option is great for those who want flexibility and cost-effective terms.

2. Leasing
Leasing involves "renting" a car for a set period, typically 2-4 years, with lower monthly payments than financing. However, these payments don't contribute toward ownership. At the end of the lease, you can return the vehicle or buy it for a pre-agreed price. Leasing often includes mileage limits and charges for wear and tear but works well for those who prefer driving newer cars without committing to ownership.

3. Credit-Building Auto Loans
Designed for individuals with little or poor credit history, these loans help secure a vehicle while improving credit. While interest rates may be higher, consistent monthly payments can boost your credit score over time. Flexible terms are often available, and after 12 months of on-time payments, you might qualify to refinance for a lower rate.

4. Personal Loans
With a personal loan, you receive the entire loan amount upfront to purchase the car outright. While monthly payments may be higher than other options, there are no restrictions, and you can sell the vehicle whenever you want, even before the loan term ends.

Your ideal financing option depends on your circumstances, the car you're purchasing, and how you plan to use it.

• Traditional financing gives you ownership at the end of the term but may have higher monthly payments and restrict selling or switching vehicles during the agreement.


• Personal loans provide freedom over your car, but the payments might be less budget-friendly.


• Leasing offers lower monthly costs but comes with mileage limits and no automatic ownership at the end.

At CarFinance247.ca, we work to find the best option from our network of lenders tailored to your needs.

The cheapest way to finance a car depends on factors like loan type, length, and interest rates (APR). While low monthly payments may seem attractive, they can result in higher overall costs due to extended terms and accumulated interest.

Leasing could be a cost-effective option since you only finance the difference between the car's current price and its estimated value at the end of the lease term (Guaranteed Minimum Future Value or GMFV). However, you won't own the car unless you pay a final “balloon payment.”

When you apply through CarFinance247.ca, we start with a soft credit check to explore your options without affecting your credit score. If you choose to move forward with an offer, a hard credit check will be performed, which could impact your score.

To qualify for a car loan with CarFinance247.ca, you must:

• Be employed,
• Be a Canadian citizen, and
• Earn at least $2,000 per month.

CarFinance247.ca offers quick decisions! Submit your application, and you could have an answer within minutes. If pre-approved, one of our account managers will reach out to confirm details and guide you through the next steps.

When applying, be ready to provide:

• Basic personal details,
• Employment and income information, and
• Details about the vehicle you'd like to purchase.

This allows us to match you with suitable financing options from our panel of lenders.

Even if other lenders, such as banks, dealerships, or brokers, have denied your application, CarFinance247.ca may still be able to help. Some of our partners specialize in assisting people with bad credit, giving you a better chance of finding financing that works for you.