Non Prime Vehicle Loans in Canada
Getting a vehicle loan these days for a Truck, SUC, Car and or Mini Van in Canada with Bad or No credit couldn’t be easier. Over the years financial institutions have entered the non-prime loan business in Canada as quick as they have left.
However in todays non-prime market an individual seeking a vehicle loan with bad or no credit has more oppotunities to get financed than ever before.
Less than 5 years ago only 3 financial institutions offered non- prime vehcile loans but after the crash of 2008 in the realestate market, financial instituions took a second look at the non-prime vehicle market. In 2014 Dealertrack Canada reported that more than 40% of all the loans in their dealer portal system were Non-prime.
Even more incredibly, car loans for more than the value of the vehicle have become commonplace. A debt-rating agency noted recently that in some cases consumers are borrowing up to 135% of the value of a vehicle.
Banks are reaching out to borrowers who have weaker credit than those who would have received loans five years ago.
Among Canadians looking to finance a purchase of a new or used vehicle, over one-third are not eligible for prime interest financing.
“Not an insignificant piece,” remarks Doug Graham, president and CEO of Rifco Inc, one of the country’s four major lenders of subprime vehicle financing, along with TD Non Prime, Scotia Dealer Advantage, and Carfinco.
A relatively new Canadian subprime player, Canadian Title Loan Corporation (CTL), believes the number of Canadians not qualifying for traditional bank financing has grown closer to 40 percent.
“If we don’t finance cars we don’t make money,” he says. “It’s the same thing for dealerships. If they don’t sell cars, they don’t make money. We feel our alignments are very similar.”
We’re one of Canada’s largest and fastest growing Special Finance companies, we provide non-prime loans for both new and used sales to meet the needs of customers who, for any number of reasons, have no credit history or less than perfect credit. Apply Now and one of our vehicle loan specialists will help you get the vehcile loan you require.