A few lenders will offer you a car loan after you have filed a consumer proposal. Since a consumer proposal is the same as a bankruptcy in the eyes of many Canadian lenders, your pool of options is small, but there is credit available to you.
Where to Look, What to Expect
You may have to shop online to find the financing you need. The keys will be your down payment, type of car you are looking for, and your payment history since filing the proposal. Any lender that is willing to consider your loan will want to see that you have been making all of your payments on-time since filing. They are going to want to see at least 20 percent of the total purchase price as a down payment, as well. You will generally need to buy a used car that meets certain mileage and age requirements. Additionally, you will have to pay a higher interest rate than you may be used to.
If you would like to utilize our service to find a company willing to approve you for financing despite your consumer proposal, you can apply online here.
On-Time Payments, Refinancing
Despite these restrictions, you can get a car loan after a consumer proposal and use it to rebuild your credit. After making at least twelve on time payments on the new loan, you should be able to return to more traditional financing with lower interest rates and less of a down payment. You may be able to do this through refinancing your current vehicle, or selling it, paying off any deficiency balance, and financing a new vehicle through a new lender.