We're here to help

General Questions

What is a car loan?

Taking out a car loan means that the lender purchases the vehicle for you and gives the opportunity to pay the full price over a period of years. In exchange, by paying interest each month, you compensate the lender services. Car loans in Canada very often use simple interest. It is calculated only on the principal and does not compound increasing your balance.

It is also important to remember that the amount that will be paid each month may vary. The reason for this is that some car loans are paid down through amortization. In this case, you always pay more at the beginning than at the end of your car loan.

What are the most common types of car loans in Canada?

Simple Interest Loan: The interest rate is based only on the outstanding balance. That gives the borrower the option to pay more than the standard monthly payment and thereby save on interest cost.

Pre-Computed Loan: All interest and principal payments are negotiated before the paperwork is signed. Payments are pre-calculated in advance, which excludes the possibility of early repayment.

What are the available terms for a car loan?

Most of the car loans in Canada are structured with 12-months increments. They last somewhere between two and seven years. Depending on whether you are planning to buy a new or used car, you will find loans between 12 months and 84 months. The average used car loan lasts between 36 months to 48 months. The average for new car loan lasts between 60 months to 72 months.

What is better: Short-term car loans vs Long-term car loans?

Everything depends on the personal preferences of each borrower. A long-term car loan comes with an increased interest rate. That means that your monthly payments will be lower, but in the end, your total loan cost will be higher. However, with the short-term car loan option, your monthly payment will be higher, but will also come with reduced interest and total overall credit cost.

What is the difference between a secured and unsecured car loan?

Secured car loans mean that the borrower offers the lender collateral or assets to secure the loan. Usually, this kind of loan used by people who recently went through bankruptcy. In most cases, the car itself is used as collateral. Unsecured car loans are the opposite, with no assets to recover in the event of default and with a higher car loan interest rate.

How it Works

Why choose Cheap Cars Canada?

Our customers choose Cheap Cars Canada because we are the most trusted and experienced company in Canada. We have helped thousands of Canadians including those with bad credit and no credit find affordable cars, vans, trucks or SUVs.

Where is your office located?

You can find our main offices in Toronto, Ontario and Vancouver, British Columbia. We offer our services to hundreds of Canadian cities in all provinces, and it is more than likely that we have car dealer partners located near you.

How much will it cost me?

Our application process for the car loan is free! We work hard to provide you with the best service, guidance, and options available, even if you have bad credit. You do not need to commit to anything until you’re ready and have found a plan that suits your needs.

What kind of personal information do you need?

We ask our customers only for the information that we need to help their get approval, including necessary information (first name, last name and date of birth), your location and financial circumstance. We do not ask for SIN number or anything too personal.

Do you take trade-ins?

Yes, of course. It is possible to use your trade-in as a down payment or to help lower your monthly payments for a new or used car loans in Canada.

What are your terms and conditions?

You can find our terms and conditions here. Conditions can vary for each person depending on the type of information from your application and financial circumstances (bad credit, no credit, bankruptcy).

Application and Approval

What are the minimum requirements?

You must be of legal driving age in the province that you reside in, and be a permanent resident in Canada. You also need to be employed for 3+ months and make at least $1600/month to qualify for a car loan.

How much money do I need for a car payment?

We have many $0 down options to suit your financial needs, and we do not require a down payment to get you qualified. Although, a down payment will decrease the amount you borrow and can shorten the loan’s term.

Do I have to do a credit check?

Yes, we will need to do a credit check for further processing of your application.

How much auto financing can I qualify for?

We understand that everyone’s financial situation is personal. After your application has been submitted, your dedicated dealer representative will contact you to discuss how much financing you qualify for. They will help you find the best solution to accommodate your average monthly budget. People with bad credit or no credit also qualified!

Can you help me, even if I’ve been turned down for a car loan before?

Absolutely! Our partners have years of experience helping people get car loans in Canada even if they have been turned down before. Having bad credit or no credit? Call us, and we will try our best to find the best option for you.

How long does the process take?

You need less than three minutes to fill out our application. After submitting it, you will be matched with an experienced local dealership who will contact you as soon as possible. Depending on the day, it may take up to 24 hours for our partners to be in touch with you.

Can we be reached over the phone?

Our team of experts will be happy to answer any questions you may have. You can contact us at 1-855-712-LOAN (5626) from Monday to Friday 9 AM - 11 PM (EST) and from Saturday to Sunday from 9 AM - 9 PM (EST).

Vehicles and Payment Details

Do I get to select the car I want?

Yes. After matching you with our local partner, they will contact you to discuss which vehicles are available and assist you in picking the best for your needs and budget.

Where can I view your inventory?

We have partnerships with hundreds of dealers across Canada, so we cannot provide you with a single inventory with all vehicles since the choice is huge! Once you have completed the application for a car loan, our partner will give you the access to their inventory to pick the vehicle that works for you.

What types of vehicles do you have to offer?

We provide car loans to virtually all types of vehicles including cars, vans, trucks, and SUVs. The choice may differ depending on the dealer.

What are the interest rates?

We do not provide financing to the borrowers, so we cannot maintain average car loan interest rates. It will be calculated for each person based on several factors, including the term and amount financed.

No results found.


Our services are 100% free and secure and we are here to make getting approved for an auto loan as easy as possible. If you can’t find the answer above feel free to give us a call at 1-800-674-9175 to speak with someone from our customer support team directly.


Apply online through our quick and secure car loan application form and find out if you are approved for a car loan today!


Or call us toll-free at 1-800-674-9175