Principal
This is the total value of the vehicle. This price can include any fees, warranties, and add-on packages. This will be the sum of the loan you pay back over time.
411 Drives understands that getting a car loan in Toronto can be a confusing and stressful time, especially when you don’t know what’s involved. We want to help make this process easier to understand so you can feel confident in your choice.
So what is involved when getting a car loan in Toronto?
How are auto loans calculated?
411 Drives has broken it down into 3 parts:
Term
Term is the length of time your car loan payments will be made for. Terms generally can be as short as 36 months to as long as 84 months. Generally, the longer your term, the less you tend to pay monthly. The shorter the term, the more you pay — but the quicker your auto loan gets paid.
Interest Rate
When getting an auto loan, lenders charge a percentage called an interest rate for lending you money. The lender chooses what rate to charge based on how much risk they see in lending to you. That rate varies by credit profile and overall application strength.
What do you need when getting a car loan in Toronto?
Getting a car loan can be exciting, but it is important to know what you need to start. When applying for a car loan it is important to have three major things:
Two Valid Photo IDs
This should include a valid driver’s licence. It helps ensure the loan is approved for the correct individual and lenders know who is responsible for repayment.
Two Most Recent Pay Stubs
Pay stubs, a Notice of Assessment, or bank statements show that you are currently receiving income and can afford the vehicle you want.
Void Cheque or Pre-Authorization
This allows the lender to know which bank account the car loan payment will be coming out of.
What ways can I get an auto loan in Toronto?
Sometimes cash purchases may not seem like the right way to get all the features of your dream car. Fortunately, Canada offers three great ways to obtain auto financing and leasing — and it’s easier than you think.
1. Through the Bank
One of the most traditional ways to obtain financing is through the bank. You set up an appointment with a loan manager and fill out an application. Banks tend to look at two major things: your income and your credit score.
If your credit score is below average, getting approved for an auto loan is very slim. When filing with a bank, they do not partner with other lenders, so the interest rates they offer are typically final.
2. Through the Dealership
Dealership financing usually starts after you select a vehicle. Depending on the dealership, they may have in-house financing or shop around with a limited set of lenders. This can result in a new credit check each time your application is sent. If you are declined, many customers feel their time was wasted — and shopping multiple dealerships can further damage credit.
3. Through 411 Drives
411 Drives is your one-stop shop when it comes to simplifying the auto buying process. We help you get pre-approved for financing or leasing before you look at vehicles, so you know your budget and stay confident while shopping.
1
Apply online
Answer a 2–3 minute auto loan application. We work on getting you a pre-approval for financing or leasing before you look at vehicles.
2
We call you back
Once you have applied, you will be contacted within 24 hours. Our coordinator pairs you with the closest dealership that can help with your situation and price range. Partnered dealerships work with 15+ lenders for bad credit, no credit, bankruptcies, consumer proposals, and more.
3
You’re approved
Once you are approved you can visit the dealership, pick up your vehicle, and get on the road — without the hassle of repeated credit checks at multiple lots.
Financing or Leasing?
Are you unsure if you should lease or finance? Compare the details below to see which option might be best for you.
Leasing
- Monthly payments are relatively cheaper
- You don’t pay to own — you pay to use the vehicle for a set term (lease-to-own options available)
- You cannot modify your vehicle
- You can change your vehicle frequently
- Limited mileage
- Restricted lease terms
Financing
- Monthly payments are higher
- Paying to own the vehicle
- Can customize and modify your vehicle
- Unlimited mileage
- Complete ownership
- Payment-free once the car is paid off
- Your own vehicle — not restricted beyond payment terms
Have questions or want to follow up?
Fill out the form below and a specialist will get back to you.
Trusted by 15+ top Canadian lenders
Frequently asked questions
Our Experts Have the Answers
411 Drives offers more than just financing. We can assist you if you are looking to lease, buy a vehicle outright, or if you found a vehicle that you need funding for.
Although we have many $0 down options available, a down payment has its benefits. It can help lower your monthly payments as well as demonstrate to lenders that you are serious about making this commitment.
You must be 18 years of age or older; have 2 forms of valid photo ID (Driver's License, Passport, Social Insurance, etc.); and proof of income (paystubs, Notice of Assessment, T4, bank statements, ODSP & pension documentation, etc.).
The amount that you are pre-approved for depends on multiple factors. After you have submitted your auto loan application, a finance specialist will contact you to discuss the details of your pre-approval.
Bad credit car loans in Whitby are our specialty. With our 98% approval rate, we can get you into a vehicle today!