Car loans, leases and financing in Canada

Financing is where most of the cost of a car hides. A small change in term length or rate can add thousands of dollars over the life of a loan. These guides explain how Canadian car loans and leases are structured, what lenders look at, and which terms deserve a second read before you sign.

In this hub10 guides on car financing. Start with the first one if you are new to the topic.

Car Down Payment in Canada: How Much Should You Put Down?

There is no single legal minimum down payment for a car in Canada, but lenders may require one, especially with weaker credit.

Getting a Car Loan With Bad Credit in Canada

You may still get a car loan in Canada with bad credit, but expect higher interest rates, larger down payment requirements and tighter terms.

Car Loans in Canada: How They Work and How to Compare Offers

A car loan in Canada is a secured loan repaid in regular instalments, with the vehicle as collateral.

Car Loan Interest Rates in Canada: How They Are Set and Calculated

Your car loan rate reflects the lender's costs, your credit profile, the loan term and the vehicle.

Car Loan Length: 60, 72 or 84 Months Compared

A longer car loan lowers your monthly payment but raises the total interest you pay and increases the risk of owing more than the car is worth.

Car Loan Pre-Approval in Canada: What to Know First

A car loan pre-approval is a lender's conditional offer that tells you how much you may borrow and at what rate before you pick a vehicle.

GAP Insurance in Canada: Is It Worth It?

GAP insurance may cover the difference between what your insurer pays for a written-off or stolen vehicle and what you still owe on your loan or lease.

Lease Buyout in Canada: Your Lease-End Options

At the end of a Canadian lease you can usually return the vehicle, buy it for the residual price in your contract, or move into a new lease.

Leasing vs Buying a Car in Canada: Which Costs Less?

Leasing usually means lower monthly payments, a new car every few years and kilometre limits, but you build no ownership.

How to Refinance a Car Loan in Canada

Refinancing replaces your current car loan with a new one, ideally at a lower rate or with terms that fit your budget better.

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