Car loan explained in detail

Apply Online for a Car Loan in Canada. Bad Credit Approved.


get approved quickly

What is a Car Loan?

Car Loan Explained

A  car loan is a personal loan that is granted by a lender for the sole purpose of purchasing a vehicle. In return, according to The Balance, “the borrower agrees to pay back the lender the amount of the loan, plus interest”. The Balance’s article also notes that in the case of a car loan, the loan is considered secure because the car is used as collateral. This is an important fact that may sometimes be overlooked, but because the car is used as collateral, if you fail to make payments on your car loan, expect to have your car repossessed and sold. If the car is sold for less than the loan amount, you’ll have to continue making payments to your lender until your full loan amount is paid off.

Some Frequently asked questions about Car Loan

Can I Get a car loan even if I have a bad credit?

We understand things happen in life. Sometimes a consumer has to make choices on what to pay first and other creditors get neglected. This definitely negatively impacts your credit score. Bad credit does not have to follow you around forever. We work with a network of dealer partners and lenders that are experts in helping those that have lower credit ratings and have a tougher time buying a car or a truck. If you have been denied in the past, we suggest you to fill out an application and allow DriveHive to help you pre-qualify for an auto loan.

Can I get a loan if i am new to the country or self employed?

There are many foreign-born individuals living in Canada that have no credit history and feel there is no way they can get approved for an auto loan. You can fill our application form and get evaluated quickly. If you are self-employed you may require more evidence of a source of revenue.  Most lenders are open to using tax-returns and bank statements.  

How long does the application process take?

There are many foreign-born individuals living in Canada that have no credit history and feel there is no way they can get approved for an auto loan. You can fill our application form and get evaluated quickly. If you are self-employed you may require more evidence of a source of revenue. Most lenders are open to using tax-returns and bank statements. 

FOR more details you can refer to our FAQ page