Understand Car Loans - Bad Credit Auto Loans & Vehicle Financing | The Car Loan Guys

Car Loan Basics

The monthly payment amount for a car loan consist of three basic components:


What Is the Principle in a Car Loan?

Quite simply, this is the amount of money you are financing to purchase the vehicle. The principle includes the total vehicle cost, any addition fees the dealership or lender may charge, and any other optional add-ons you select. Any down payment and/or vehicle trade-in allowance is subtracted from the total costs and the remaining balance is the principle.

Length of Loan (Term)

What Is the Loan Term?

The terms of the loan is the number of required monthly payments you must make before you fully own the vehicle. Loan terms can range in length from as little as 36-months to as many as 72-months. In certain cases, depending upon your financial situation and vehicle age, shorter or longer repayment periods might be offered.


What Is Interest?

Interest is a percentage amount charged by the lender in exchange for financing the vehicle. The percentage you are charged is influenced by several factors, such as your credit score, the age of vehicle being financed, and the risk to the lender.

What Is the Difference Between “In-House” and Lender Financing?

In many cases you will make your monthly payments directly to the lender, not the dealership. However, in some cases, “In-House” financing might be available through the dealer, and in that case, you would make your payments directly to the dealer, since they are also the lender.

Here at The Car Loan Guys, we have hundreds of certified dealerships that do offer special financing in cases where you may not be approved by a traditional lender. No matter your credit history, you can still be approved for your car loan and vehicle.
Fill out our application now and be approved quickly – often within a few hours!

What Information Is Needed to Apply

Current Address

In order to apply, our network of lenders will require your current address.

Employment and Income

Normally, you are required to be employed for at least three months and earn approximately $1,500 per month. Other forms of income may also be accepted, like some types of government assistance.

Bank Account

Payments are typically withdrawn from your bank account and you can provide either an authorization payment form or voided cheque.

Driver License

You must possess a valid driver license and be of the age of majority in your Province. Our network of lenders know people with a driver license tend to pay back their car loans better.

Down Payment/trade-in

In some cases a down payment and/or vehicle trade-in can be required, but are not always necessary. Having a down payment reduces the amount financed and lenders are more like to approve your loan.

Ready to Connect with One of Our Dealers?

Complete on easy car loan application online now and we will connect you to qualified dealers in your area, who offer vehicle financing options, regardless of your prior credit.

Instant Online Approval

It only takes a minute to get approved and we only ask for
the info we really need.

Instant Online Approval

It only takes a minute to get approved and we only ask for the info we really need.