Subprime Car Financing in Canada
Subprime car financing provides options for applicants who may not qualify for prime lending rates. Your Approval connects you with participating dealers that offer subprime financing programs tailored to your individual circumstances.
What Is Subprime Car Financing?
Subprime car financing refers to loans offered to applicants whose credit profiles fall below prime lending standards. This may include applicants with lower credit scores, limited credit history, or past credit difficulties. Subprime loans typically have different terms than prime loans, and rates depend on your individual circumstances.
Factors That Affect Subprime Financing
Participating dealers consider multiple factors when reviewing subprime applications:
- Credit history and score
- Employment income and stability
- Residence history and stability
- Down payment or trade-in equity
- Vehicle choice and loan-to-value ratio
- Existing debt obligations
How Your Approval Helps
We do not guarantee approval or specific rates. Our role is to connect you with participating dealers that offer subprime financing programs. After you submit your application, our team reviews your information and connects you with a dealer that can assess your options.
Subprime vs. Prime Financing
The main difference between subprime and prime financing is the interest rate and terms. Subprime loans typically have higher rates to reflect the increased risk to the lender. However, a subprime loan can be a stepping stone — making consistent, on-time payments can help improve your credit profile, potentially qualifying you for better terms in the future.
Frequently Asked Questions
Check Your Options
Complete our secure online application in approximately 2 minutes and connect with a participating dealer.
Check Your Options