Auto Loan Financing Requirements
Even if we can't guarantee that every auto loan application will be approved, there are some simple requirements that you can review to see if you will likely be qualified for an auto loan. Here at Canada Auto Finance, we recommend meeting as many of the following requirements to ensure the best possible chance of getting financed.
Of primary concern for lenders will be your ability to afford payments. Even with bad credit, it can be looked over if the applicant is able to prove that they are capable of making payments and affording the vehicle.
Employment or Income: In order to be approved for a car loan it is often necessary for you to have been at your current job for three or more months so that you will, as a general rule, be past your probation period. This increases the likelihood of you staying at your job in the eyes of lenders. There are also many instances where lenders are able to accept alternative forms of income, such as government assistance.
Driver’s License: Yes, you need a valid drivers license in order to get an auto loan. It is also necessary that you be the age of majority in the province that you live in.
Current Address: This will be necessary since lenders will want to know where you live.
Bank Account: When you are approved for an auto loan, it is necessary for you to make payments on time. The easiest method of achieving this is through your lender being able to take a payment out of your bank account each month.
Down Payment: While it isn’t always necessary, having a down payment available when trying to get a car loan with bad credit can be incredibly helpful. The less you have to finance, the more likely that a lender will approve you for a loan. That being said, there are often zero finance options available.