These guides explain car financing in general terms. They are not financial or legal advice, and they do not replace the documents a lender or dealer gives you.
How Car Loans Work in Canada
What a car loan is, who offers them, what makes up the cost and what happens from application to final payment.
New vs Used Car Financing
How financing a new vehicle differs from financing a used one, and what to weigh up for each.
Car Loan APR vs Interest Rate
The difference between a car loan’s interest rate and its APR, and why the APR is the better figure for comparing offers.
How Loan Terms Affect Total Cost
Why a longer car loan lowers the payment but raises the total interest, and how to choose a term.
Down Payments and Trade-Ins
How a down payment and a trade-in reduce what you borrow, and what to check about tax and outstanding balances.
Negative Equity Explained
What negative equity on a car loan means, how it happens and what your options are.
Dealer Financing vs Bank Financing
How arranging a car loan through a dealership compares with borrowing directly from a bank or credit union.
Car Financing With Less-Than-Perfect Credit
What to expect when applying for a car loan with a low or limited credit history, and how to protect yourself.
Documents Commonly Requested for Auto Financing
The documents Canadian lenders and dealers commonly ask for when you apply for a car loan.
Understanding the Partner Application Process
What happens when you start a car loan application on Direct Car Loans and continue to our partner’s website.