Car loan and financing FAQs

Answers to common questions about car loans in Canada: credit requirements, down payments, interest rates, trade-ins with negative equity, and vehicle delivery.

Can I get a car loan with bad credit in Canada?

Yes. OCAL Financial works with lenders who consider non prime and subprime applicants. Approval depends on income, stability and the vehicle as well as your score, and it is never guaranteed. See our bad credit car loans page.

Will applying hurt my credit score?

Checking your options with us does not affect your credit score. A hard inquiry only occurs when a lender formally reviews your file, and we tell you before that happens.

How long does approval take?

The application takes a few minutes. Most applicants hear back the same business day, though files needing extra income verification can take longer.

Do I need a down payment?

Not always. Some lenders approve with no money down. A down payment improves your approval odds, lowers your payment and reduces total interest, so it is worth putting something down if you can.

What documents do I need?

A valid Canadian driver's licence, proof of income, proof of address, and banking details for payments. Some files require additional verification.

Can I trade in a vehicle I still owe money on?

Yes. The outstanding balance is settled from the trade in value. If you owe more than the vehicle is worth, that negative equity can often be rolled into the new loan, and we will show you what that costs before you agree to it.

What credit score do I need?

There is no single cutoff. We have arranged financing across the full range of Canadian credit scores. Lower scores mean higher rates.

Do you deliver the vehicle?

Yes. We deliver across British Columbia and Alberta once financing is finalised and the paperwork is complete.

Can I apply if I am self employed?

Yes. Expect to provide bank statements or notices of assessment instead of pay stubs.

Can I refinance later?

Often, yes. Twelve to twenty four months of on time payments on a subprime loan frequently opens the door to a better rate.