Question 1

Do I need a down payment?

Accepted Answer

No. While a down payment can lower your interest rate and monthly payment, we secure $0 down approvals every single day. Approval is based primarily on your provable monthly income — not your credit history or savings. That said, if you can put even $500–$1,000 down, it gives lenders more confidence and can open up better rate tiers.

Question 2

I just got out of a consumer proposal. Am I eligible?

Accepted Answer

Yes — and this is one of our specialties. You are eligible not only after your discharge but while your proposal is still active. Many of our lenders specifically serve clients in active proposals because they understand that someone paying back their debt responsibly is a lower risk than someone who has never been tested. We've helped hundreds of clients in exactly this situation.

Question 3

Can I get approved after bankruptcy in Canada?

Accepted Answer

Yes. You can get a car loan after bankruptcy in Canada, even immediately after discharge. Specialized lenders like Always Approved work with discharged bankruptcies and active consumer proposals. The key factors are steady income, a reasonable down payment if possible, and applying to the right lender — which is exactly what we do. Most of our post-bankruptcy clients receive a decision within 24 hours.

Question 4

I've been turned down by my bank. Can you still help?

Accepted Answer

That's our entire business. Banks use rigid automated scoring that instantly declines anyone below a certain threshold regardless of their actual situation. We work with a network of specialized lenders whose entire model is built around approving people the banks won't touch. A bank decline is not the end — it's just the beginning of working with us.

Question 5

Does it matter if I've had a repossession before?

Accepted Answer

A previous repossession makes approval harder but not impossible. Lenders will want to see that you have stable income now, that some time has passed since the repo, and that you can explain what happened. We're upfront about this — some lenders in our network will work with a recent repo, others won't. We'll match you to the right one.

Question 6

What if I'm on ODSP or social assistance?

Accepted Answer

ODSP, CPP, OAS, and other government benefit income counts as provable income with many of our lenders. We'll need your most recent benefit statement showing the monthly amount deposited directly to your bank account. Income type matters less than income consistency — a steady $1,800/month from benefits is often treated the same as employment income.

Question 7

What credit score do you need for a car loan in Canada?

Accepted Answer

Traditional lenders typically require a 650+ credit score. Our network of subprime lenders works with scores as low as 300. What matters more than your score is your current income, employment stability, and down payment. A 420 score with $3,500/month take-home income will often beat a 580 score with inconsistent employment.

Question 8

Will applying hurt my credit score?

Accepted Answer

No hard inquiry to start. Our initial pre-approval process uses a soft check that leaves no mark on your bureau. A hard inquiry only happens once you've been matched to a lender and are ready to move forward. One hard pull is typically a minor impact on your score and recovers over time with consistent payments.

Question 9

How does a car loan help rebuild my credit?

Accepted Answer

An auto loan is one of the fastest and most reliable ways to rebuild credit in Canada. It's an installment loan — a different type than credit cards — which diversifies your credit mix and signals to Equifax and TransUnion that you can manage multiple types of credit. Every on-time monthly payment is reported to both bureaus. Most of our clients see meaningful score improvement as they build a positive payment history.

Question 10

I have no credit history at all. Can I still be approved?

Accepted Answer

Yes. No credit (thin file) is different from bad credit and is often easier to work with. New Canadians and young adults with no bureau history are approved regularly through our network. The key is demonstrating income and stability. We'll typically recommend starting with a modestly priced vehicle to keep your payment comfortable while you build your file.

Question 11

What is your minimum income requirement?

Accepted Answer

Our network requires a provable monthly income of at least $1,800 before taxes deposited directly into a Canadian bank account. This needs to be verifiable — bank statements, pay stubs, or benefit letters. Cash income that isn't deposited is difficult for lenders to accept because it can't be verified. If you're self-employed, we'll work with your bank statements and NOA.

Question 12

I'm self-employed. Can I still get approved?

Accepted Answer

Yes. Self-employed approval requires 3–6 months of business bank statements showing consistent deposits, and ideally your most recent Notice of Assessment (NOA) from the CRA. Some lenders will work with bank statements alone if the income is clearly consistent. We work with tradespeople, contractors, freelancers, and small business owners regularly.

Question 13

I just started a new job. Does that disqualify me?

Accepted Answer

Not necessarily. Some lenders require 3 months at the same employer, others only 30 days, and a few will approve on a job offer letter alone. If you're in a probationary period, we'll be upfront about which lenders are realistic options and what vehicle price range gives you the best shot. The stronger your income, the more flexibility we have.

Question 14

What documents do I need to apply?

Accepted Answer

To process your approval you'll need: a valid Canadian driver's licence, proof of income (2–3 recent pay stubs or 3 months of bank statements), a recent utility bill or piece of mail confirming your address, and a void cheque or banking info for pre-authorized payment setup. That's it. No co-signer required, no lengthy paperwork — the whole thing can be done digitally.

Question 15

How fast can I get a vehicle?

Accepted Answer

Most clients receive a decision within 24 hours of submitting their application. You can pick out your vehicle and take delivery within 24–48 hours depending on your location in Ontario and vehicle availability.

Question 16

What does the approval process actually look like?

Accepted Answer

Step one: you submit your application online — it takes about 5 minutes. Step two: we review your file and match you to the right lender, usually within 24 hours. Step three: your specialist contacts you, confirms your details, and presents your approval terms including rate, payment, and vehicle budget. Step four: you pick a vehicle within your approved budget. Step five: paperwork is signed digitally and your vehicle is delivered or ready for pickup.

Question 17

Are there any fees to apply?

Accepted Answer

None. Our pre-approval application is completely free with no obligation. We get paid by lenders when a deal funds — which means we only win when you do. There's no application fee, no processing fee, and no cost to you at any point in the process.

Question 18

Can I apply if I live outside Ontario?

Accepted Answer

We are currently focused on Ontario-based applicants. If you're in a different province and want to apply, reach out directly — we can sometimes refer you to a trusted partner in your area rather than leaving you to figure it out on your own.

Question 19

Can I pick any vehicle I want?

Accepted Answer

Your approval comes with a vehicle budget based on your income and down payment. Within that budget, you have a lot of flexibility — you can choose from our in-house inventory or we can work with approved dealer partners. For clients rebuilding credit, we typically recommend vehicles in the $12,000–$22,000 range to keep payments manageable while still getting something reliable.

Question 20

Can I buy a private sale vehicle with financing?

Accepted Answer

Private sale financing is available through some of our lenders but is more restrictive. The vehicle needs to be newer than a certain model year, below a certain mileage threshold, and often requires a mechanical inspection. It's possible — just more steps. Dealer inventory is significantly easier and faster to finance.

Question 21

Do the vehicles come with a warranty?

Accepted Answer

Vehicles purchased through our dealership or dealer network typically come with a safety certification as required by Ontario law. Extended warranties are available and often recommended for high-mileage vehicles — your specialist will walk you through the options. We don't hard-sell warranties, but for a client rebuilding credit, a breakdown can be catastrophic, so coverage matters.

Question 22

What interest rate should I expect?

Accepted Answer

Subprime auto loan rates in Canada currently range from roughly 9.99% to 29.99% depending on credit score, income, down payment, and vehicle age. We'll always present you with the best rate we can secure based on your actual file — and we'll be transparent about what's driving it. The goal is to get you into a vehicle now and refinance at a better rate in 12–18 months once your credit has improved.

Question 23

Can I refinance later to get a lower rate?

Accepted Answer

Yes, and we actively encourage it. Once you've made 12 months of on-time payments your credit score will have improved significantly, and you'll likely qualify for a much better rate. We'll remind you when you hit that window and help you refinance if we can get you a better deal. Your long-term financial health matters to us beyond the initial transaction.

Question 24

What happens if I miss a payment?

Accepted Answer

Contact your lender immediately — don't avoid the call. Most subprime lenders have hardship programs and will work with you on a deferral if you reach out before you miss the payment rather than after. Proactive communication protects your credit and your vehicle. If you're struggling, call your specialist at Always Approved too — we can sometimes intervene on your behalf.

Frequently Asked Questions

Getting Approved

Credit & Score

Income & Employment

Process & Timeline

Vehicles & Dealers

After Approval

Have a question about your specific file?