Are there 0 finance options for a used car?
Yes, there are 0% financing options for used cars in Canada, though they are less common compared to financing for new cars.
Some car manufacturers offer 0% financing on their Certified Pre-Owned (CPO) vehicles (Toyota Certified, Honda Certified, BMW Certified Pre-Owned). These programs typically include a thorough inspection and warranty coverage.
Occasionally, dealerships may run promotions that include 0% financing for certain used cars, particularly if they are trying to clear out inventory. Dealers might offer 0% financing as a negotiation tool, especially if you have strong credit and are buying a higher-end used vehicle.
Some online auto marketplaces (AutoTrader, CarGurus) and lenders offer competitive financing rates, including occasional 0% financing offers. Some credit unions offer attractive financing rates for their members, which can sometimes include 0% financing on used cars.
Consider, that typically, you need an excellent credit score to qualify for 0% financing. The term for 0% financing deals is often shorter, such as 24 or 36 months.
What documents do I need to get old car finance?
To secure financing for an old car in Canada, you will need to provide several documents to the lender, like a driver's license, passport, or provincial ID card, recent pay stubs, a letter from your employer confirming your employment status, position, and salary, copies of your recent tax returns, utility bills (e.g., electricity, water, gas) that show your current address, recent bank statements, information about the car you intend to purchase, including make, model, year, and VIN (Vehicle Identification Number).
Some lenders may request a copy of your credit report, though they often pull it themselves with your consent.
As an alternative, you can also take out a personal loan. Your possible expenses:
Personal loan calculations for 1 year (example)
| Amount, $ | Rate, % | Accrued %, $ |
| 10,000 | 7.20% | 390 |
| 10,000 | 10.20% | 553 |
| 10,000 | 13.20% | 715 |
| 20,000 | 7.40% | 802 |
| 20,000 | 10.40% | 1,127 |
| 20,000 | 13.40% | 1,452 |
| 30,000 | 7.60% | 1,235 |
| 30,000 | 10.60% | 1,723 |
| 30,000 | 13.60% | 2,210 |
| 40,000 | 7.80% | 1,690 |
| 40,000 | 10.80% | 2,340 |
| 40,000 | 13.80% | 2,990 |
Can I get a second hand vehicle with bad credit in Canada?
Some dealerships specialize in working with buyers who have bad credit. They may offer financing options tailored to your situation. Look for lenders that cater to subprime borrowers. These lenders are more likely to approve loans for individuals with poor credit histories.
Be prepared for higher interest rates. Lenders may charge more to offset the risk associated with bad credit. A larger down payment can improve your chances of securing a loan and may also help reduce your interest rate.
If possible, having a cosigner with good credit can improve your chances of approval and might help you get a better interest rate. Review your credit report for any errors or inaccuracies that you can correct to improve your credit profile.
See the similar FAQ about Canadian banks:
- B2B Bank SMART Loan
- B2B Bank investment loan
- B2B bank RRSP loan
- CIBC collections contact
- CIBC loan and financial calculators
Details of companies offering the financial services:
LendforAll
Web-site: https://lendforall.ca
Bank Of Montreal
Head office’s address: 119, rue Saint-Jacques Montreal, Quebec H2Y 1L6
Contact center: 877-225-5266
Phone: 416-867-5000
Web-site: http://www.bmo.com/main/personal
Swift code: BOFMCAM2
Stock code: BMO
BSB: 001
Canada Auto Finance
Web-site: https://www.canadaautofinance.ca
CIBC
Head office’s address: 199 Bay St, 44th Floor Toronto
Contact center: 800-465-2422
Web-site: https://www.cibc.com/en/personal-banking.html
Swift code: CIBCCATT
Stock code: CM
BSB: 010
Scotiabank
Head office’s address: Scotia Plaza, 44 King Street West Toronto
Contact center: 800-472-6842
Phone: 416-866-6430
Web-site: http://www.scotiabank.com/ca/en/0,,2,00.html
Swift code: NOSCCATT
Stock code: BNS
BSB: 002
Scotiabank
Head office’s address: Scotia Plaza, 44 King Street West Toronto
Contact center: 800-472-6842
Phone: 416-866-6430
Web-site: http://www.scotiabank.com/ca/en/0,,2,00.html
Swift code: NOSCCATT
Stock code: BNS
BSB: 002
Super Daves Auto
Head office’s address: Dartmouth: 1015 Main St.
Contact center: 902-702-0027
Web-site: https://www.superdavesautosales.ca/
TD Bank
Head office’s address: Toronto-Dominion Centre, Po Box 1 Stn Toronto Dom, Toronto
Contact center: 866-222-3456
Web-site: https://www.td.com/about-tdbfg/our-business/index.jsp
Swift code: TDOMCATTTOR
Stock code: TD
BSB: 004
Yourcarloan
Web-site: https://yourcarloan.ca/