Can You Get a Loan For a Used Car in Canada?

Can You Get a Loan For a Used Car in Canada?

Posted on August 5, 2022

Did you know you can buy any used vehicle with a loan? Many people don’t know that, which is why we put this post together. But what used cars can you buy with a car loan?

We asked our Paris car loan team to outline what types of used cars you can buy with a loan and how it all works.

Used car loans in Paris

Most people know you can buy new cars using a car loan, but fewer realize you can also buy any used vehicle with a loan. If you would prefer to buy certified used, this is great news for you!

What used cars can you buy with a car loan?

You can buy almost any used car with a car loan. As long as it’s not a commercial vehicle, road legal and under 10 years old, you should be fine to buy it.

If you want to buy something older, like a classic or vintage, you’ll need a specific type of loan for that. The upper age limit for standard used car loans is firm at 10 years.

The second limitation with what used car you can buy is that it must be from a dealership. You cannot buy a used car from eBay or elsewhere using finance.

To secure a loan on a used car, it must be bought through a dealership.

Used cars are riskier to lend for even though the amounts are usually for less. Used cars are more of an unknown quantity and by buying it from a dealer, lenders have some kind of assurance that the car will be of sufficient quality.

Buying a used car from a private seller

You cannot buy a used car from a private seller with a car loan. You can do that using a personal loan or other form of unsecured finance but a lender will not agree a car loan.

For the reasons above about used cars being less of a known quantity, that’s even more true when buying privately. No lender wants to lend money to someone who could buy a lemon that is worth nothing!

How to buy a used car with a car loan in Paris

The process of buying a used car with a loan is much the same as buying a new one.

Prepare for the loan, find a car and buy it.

Preparing for the car loan

Prepare for the car loan in the usual way. Check your credit score and improve it if necessary, set a budget according to what you can afford, save for a down payment of at least 10% of your budget, prepare your paperwork to support your loan.

Visit our dealership, check out our range of used cars, find one you like and work with us to get you a great deal.

By preparing in advance for the loan, you should have everything in place for us to find you a great deal on any used vehicle with a loan!

When you’re ready for a car lease or loan, get in touch with the Paris auto loan experts at Northway Ford for great deals on auto finance.

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