Understanding Car Loans

What You Need

• 1. Employment & Income

Typically you need to be at your current job for three or more months and make at least $1500/month. Other forms of income, such as certain types of government assistance may also be accepted.

• 2. Driver's License

It is necessary to have a valid driver’s license and be the age of majority in the province that you live in. Lenders know that customers are more likely to pay back their car loan if they can legally drive.

• 3. Bank Account

The lender wants to be able to take the payment out of your bank account each month. The easiest way to do this is to get a void cheque or stamped pre-authorized payment form.

• 4. Current Address

In order to complete your loan documents you must provide the lender with your current address.

• 5. Down Payment

Although a down payment isn’t always necessary, it will often help. The less you have to finance, the more likely the lender will be to approve your car loan.