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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.

To avoid the possibility of getting turned away at the dealership, review our general guideilines carefully and submit an online finance application (even if you don't meet every single one).

At least $1,500 income. A gross monthly income of at least $1,500 is required for all applicants who suspect their credit scores to be less than 625. Don't forget that this is pre-tax income. Also, be sure to include any income you receive outside of your paycheck such as child support, annuity, alimony, or any other secondary income you may have.

All Bankruptcies must be discharged. It's okay if you've been through a bankruptcy in your past. We understand that this is sometimes necessary in order to move on financially. However, we do require that all bankruptcies be discharged at the time of applying.

No Repossessions in the last year. Unless it was included in a bankruptcy that's been discharged, you cannot have had a repossession within a year of the application date.

Have to be a Canadian resident. You must be at least 18 years of age and a resident of Canada in order to qualify for lending through Canada Auto Finance.

Additional Information

Canada Auto Finance places people who have less than perfect credit with lenders in their area willing to work with them. These are auto loans for automobile purchases from our authorized licensed car dealer partners.

Our secure online application takes only a few minutes to complete and provides us with all of the necessary information to get the process started. In less time than you may think, you could be test driving cars at the dealership, with the added knowledge of knowing how much you have to spend on your next vehicle.

  • Get Approved + Pick a Car
  • Approvals for Good Credit, Bad Credit + No Credit
  • Up to $45,000 car loan