📅 Last Updated: September 30, 2021
✏️ Written By Bryan Daly
🕵️ Fact-Checked by Caitlin Wood

Car Loans Newfoundland and Labrador - Compare Providers

ProviderLoan AmountRateTerm (Months)Rating
00 Up to $50,000Prime – 46.96%3 - 120
Up to $50,000
1001709683200 Dashloansup to $1,250 12%-32% 90 - 150 days
up to $1,250
231700524800 Parachute$5,000 - $25,000 24.99% - 29.99% 30 or 60
$5,000 - $25,000
151695254400 GoLoans$1250 16.06% (nominal) - 31.99% (effective) 3 - 5
$1250
111692748800 BreeUp to $250 0% Up to 65 days
Up to $250
81688083200 City Lending Centers (CLC)$150 - $1,600 10 - 35% 3 - 6
$150 - $1,600
1001686182400 Northstar Brokers$300 - $3,000 18% + fees 6
$300 - $3,000
1001686182400 Deposit My Cash Now$300 - $3,000 18% + fees 6
$300 - $3,000
1001686182400 My Next Pay$300 - $3,000 18% + fees 6
$300 - $3,000
61683676800 Windmill Microlending$15,000 6.7% Up to 60 months
$15,000
11670889600 Fora$1,000 - $10,000 19.9% - 46.9% -
$1,000 - $10,000
71666051200 Nyble$150 0% -
$150
1001643932800 FlexMoney$500 - $15,000 +18.9% APR 6 - 60
$500 - $15,000
131639094400 Loanz$1,000 - $15,000 29.9% - 46.9% APR   12 - 60
$1,000 - $15,000
301637280000 Symple Loans$5,000 - $50,000 5.75% - 22.99% Up to 84
$5,000 - $50,000
1001623369600 AfterpayVaries 0% 6 or 8 weeks
Varies
21620777600 Spring FinancialUp to $35,000 9.99% - 46.96% 9 - 78
Up to $35,000
171607558400 Helium Loans$500 - $50,000 6.99% - 46.99% 12 - 36
$500 - $50,000
1001600646400 Iceberg Finance$1,000-$7,500 12.99% - 29.99% 24 - 60
$1,000-$7,500
1001598918400 LM Financial$1,000 - $15,000 - -
$1,000 - $15,000
1001598832000 LM Credit$500 – $15,000 + 25.99% 9 - 60
$500 – $15,000
1001595980800 FlexiLoans$200 - $1,200 25% - 32% -
$200 - $1,200
1001593561600 PayBright- 0+ 2 - 60
-
1001582243200 LendCare- - Up to 60
-
1001580947200 ECN Capital- - -
-
1001580860800 SimplyBorrowed$500 - $5,000 - 12 - 24
$500 - $5,000
1001580860800 Pebble Cash$350 - $1,000 - 2 - 12 weeks
$350 - $1,000
91580860800 Refresh Financial$1,600 - $25,000 19.99% APR 36 - 60
$1,600 - $25,000
161580774400 goPeer$1,000 - $25,000 7.5% - 31.5% APR 36 - 60
$1,000 - $25,000
1001579478400 North’n Loans$100 - $1,500 - -
$100 - $1,500
1001579478400 MDGUp to $5,000 29.78% - 44.8% 36 months
Up to $5,000
1001579219200 Loan or Credit$100 - $25,000 +4.9% -
$100 - $25,000
1001576713600 Flexiti Financial- Up to 35% -
-
181576713600 Financeit$500 - $100,000 6.99% - 14.99% 12 - 240
$500 - $100,000
1001575590400 Climb1800- 2900 15.99% 23 - 36
1800- 2900
1001562198400 Pylo Finance$500 - $15,000 15.99 - 39.99% 6 - 60
$500 - $15,000
1001560124800 Fresh Start FinanceUp to $15,000 29.99% - 46.96% 9 - 60
Up to $15,000
171545955200 MarbleUp to $20,000 18.99% - 24.99% 36 - 84
Up to $20,000
191552262400 Money Mart$1,000 - $15,000 29.9% or 46.90% 6 - 60
$1,000 - $15,000
1001551830400 Payday King$100 - $1,000 546% APR 14 days
$100 - $1,000
1001569974400 Private Loan Shop$500 - $50,000 15 - 30% -
$500 - $50,000
1001551830400 Progressa$1,000 - $15,000 19% - 46.95% 6 - 60
$1,000 - $15,000
1001551398400 Money Provider$500 - $1,000 28% - 32% -
$500 - $1,000
1001551398400 Loan Express- - 14 days
-
181546128000 Loan AwayUp to $5,000 19.9% - 45.9% APR 6 - 36
Up to $5,000
1001551139200 Lendful$5,000 - $35,000 9.9%+ 6 - 60
$5,000 - $35,000
151551139200 LendDirectUp to $15,000 19.99% APR Open-end
Up to $15,000
1001550534400 Health Smart Financial Services$300 - $25,000 7.95%+ 36 - 60
$300 - $25,000
1001550534400 Focus Financial Inc.Up to $1,500 Up to 59% APR 14 days
Up to $1,500
1001550534400 Eastern Loans$500 - $1,000 28% - 32% 3 -5
$500 - $1,000
1001550534400 DMO Credit$300 - $1,000 38% APR 3 - 4
$300 - $1,000
1001549411200 Capital Cash$100 - $1,000 546% APR 14 days
$100 - $1,000
1001567555200 Cash Depot$300 - $3,000 18% + fees 6
$300 - $3,000
1001549238400 Credit 700$500 - $1,000 28% - 32% 4 - 5
$500 - $1,000
1001549238400 Credit2Go$250 - $1,000 29% APR 3 - 4
$250 - $1,000
201548720000 Ledn$500 - $1,000,000 7.9% 12
$500 - $1,000,000
1001548720000 Amber Financial$1,000 - $50,000 4.6% – 49.96% 3 - 60
$1,000 - $50,000
1001548633600 Affirm Financial$300 - $7,500 29.9% - 39.9% 6 - 60
$300 - $7,500
1001548633600 310 Loan$50 - $1,500 - 14 days
$50 - $1,500
1001545955200 Newstart CanadaUp to $20,000 19% - 49% 36 - 48
Up to $20,000
161545264000 Ferratum$2,000 - $10,000 18.9% - 54.9% 12 - 60
$2,000 - $10,000
51545264000 SkyCap Financial$500 - $10,000 12.99% – 39.99% 9 – 36
$500 - $10,000
21543622400 Fairstone FinancialUp to $50,000 19.99% - 39.99% 6 - 120
Up to $50,000
101545264000 Consumer Capital Canada$500 - $12,500 19.99%+ 12 - 60
$500 - $12,500
1001545350400 LaminaUp to $1000 30% 3 - 5
Up to $1000
1001545350400 Loans SOSUp to $5,000 60% 6 - 60
Up to $5,000
1001545350400 Cashco FinancialUp to $7,000 - 6 – 60
Up to $7,000
1001545350400 UrLoan$500 - $2,500 29% - 46.95% 6 - 36
$500 - $2,500
51545350400 LoanMeNow$500 - $1000+ 28%-32% 3
$500 - $1000+
1001545350400 Captain Cash$500 – $750 28% – 34.4% 3
$500 – $750
1001545350400 BC Loans$500 – $750 23% - 34.4% 3 – 12
$500 – $750
1001545350400 Urgent Loans$300 - $1500 27% - 35% 3 - 4
$300 - $1500
41545264000 easyfinancial$500 - $100,000 Starting at 29.99% 9 - 84
$500 - $100,000
31545264000 Mogo FinanceUp to $3,500 47.72% -
Up to $3,500
101545177600 Borrowell$1,000 - $35,000 5.99% - 29.19% 36 - 60
$1,000 - $35,000
181545177600 Magical Credit$100 - $20,000 Up to 46.8% Up to 60
$100 - $20,000
ProviderLoan AmountRateTerm (Months)Rating
00 Up to $50,000Prime – 46.96%3 - 120
Up to $50,000
81714089600 Primed Loans$10,000 + 4%-45% 90 days+
$10,000 +
71714089600 OnTap Capital $10,000 to $2,000,000 10%+ Up to 36
$10,000 to $2,000,000
21669852800 Driven$5,000 - $300,000 - 3 - 24 months
$5,000 - $300,000
1001648512000 2M7 Financial Solutions$10,000 - $250,000 Varies 6-12
$10,000 - $250,000
1001620345600 TD Bank- - 12 - 60
-
1001611878400 Accord Financial$5,000 - $30,000,000 - Up to 18
$5,000 - $30,000,000
171607558400 Helium Loans$500 - $50,000 6.99% - 46.99% 6 - 36
$500 - $50,000
1001598918400 Loop- - -
-
1001585612800 BarterPay- 0.9% - 12% 6 months - 5 years
-
1001581984000 Clearbanc$10,000 - $10,000,000 6% - 12.5% -
$10,000 - $10,000,000
1001581033600 GE Capital- - -
-
1001581033600 We Can Financial- - -
-
1001580947200 Key Equipment Financing- - -
-
1001580947200 Corl$10,000 - $1,000,000 - -
$10,000 - $1,000,000
1001580860800 Yellowhead Equipment Finance Ltd- - -
-
1001580860800 Specialty Truck Financing- - -
-
1001580860800 Travelers Financial- - -
-
1001580860800 Peel Financial- - -
-
1001580860800 Pioneer Financial Services$5,000 - $1,000,000 - -
$5,000 - $1,000,000
1001580860800 Polaris Leasing- - -
-
1001580860800 Patron West- - -
-
1001580860800 Payabilityup to $250,000 - -
up to $250,000
1001580860800 Planet Financial- - -
-
1001580688000 RiseUp to $10,000 - -
Up to $10,000
1001580256000 Merchant Growth$5,000 - $500,000 - 6 - 18 months
$5,000 - $500,000
1001579478400 Onesta- - -
-
1001579478400 Lionhart Capital$10,000- $30,000,000 Min 4.95% -
$10,000- $30,000,000
1001579478400 Lift Capital- - 12 - 120
-
1001579478400 Leaseline- - 24 to 60
-
1001579478400 Lease Direct- - -
-
1001579478400 John Deere- - -
-
1001579046400 Hitachi Capital Canada- - -
-
1001577059200 Export Development Canada- - -
-
1001577059200 Essex Lease Financial Corporation- - -
-
1001577059200 Equilease- - -
-
1001575849600 Alliance Financing Group LTD$5,000 - $150,000 15% + 6 - 24
$5,000 - $150,000
1001575849600 CanaCapUp to $250,000 - -
Up to $250,000
1001575590400 CLE Capital- - -
-
1001575590400 Canada Equipment Loan- - -
-
11545955200 SharpShooter Funding$5,000 - $150,000 Fee-Based: Starting at 9% 12 - 60
$5,000 - $150,000
1001552262400 Laurentian Bank of CanadaUp to $250,000 - Up to 10 years
Up to $250,000
1001552262400 HSBC Bank Canada- - -
-
1001552262400 National BankUp to $1,000,000 - -
Up to $1,000,000
1001551830400 Canadian Imperial Bank of Commerce (CIBC)$10,000+ - Up to 15 years
$10,000+
1001551830400 ScotiabankUp to $1,000,000 -   Up to 15 years
Up to $1,000,000
1001551830400 Bank of Montreal (BMO)Up to $500,000 - Up to 10 years
Up to $500,000
1001551830400 Royal Bank of Canada (RBC)$5,000 - $10,000 - Up to 7 years
$5,000 - $10,000
1001551398400 CWB National Leasing$3,500+ - -
$3,500+
1001551398400 Money in Motion$10,000 - $1,000,000 4% - 14% 12 - 84
$10,000 - $1,000,000
1001551139200 Lease LinkUp to $75,000 - Up to 18
Up to $75,000
1001550534400 FundThrough$500-$50,000 0.5% weekly 12 week cycles
$500-$50,000
1001550534400 Econolease Financial Services Inc.$1,000 - $1,000,000 6% - 20% -
$1,000 - $1,000,000
1001550534400 Easylease CorpUp to $5,000,000 4.5% 24 - 72
Up to $5,000,000
1001550534400 Capify$5,000 - $200,000 - -
$5,000 - $200,000
1001549411200 Canadian Equipment Finance$50,000 - $12,000,000 - 24 - 96
$50,000 - $12,000,000
1001549411200 Capital Key$5,000 - $1,000,000+ - 1 - 60
$5,000 - $1,000,000+
1001549238400 Cashbloom$5,000 - $1,000,000 - 3 - 24
$5,000 - $1,000,000
1001548720000 BFS Capital$5,000 - $5,000,000 - 4 - 18
$5,000 - $5,000,000
1001548720000 BDCUp to $100,000 6.05% + 60
Up to $100,000
1001548720000 Baron Finance$10,000+ 18% - 22% -
$10,000+
1001548720000 B2B Bank$10,000 - $300,000 4.70% - 5.45% -
$10,000 - $300,000
101545177600 Borrowell$1,000 - $35,000 5.6% – 25.5% 36 – 60
$1,000 - $35,000
1001545264000 iCapital$5,000 - $250,000 - 3-18
$5,000 - $250,000
1001545264000 Lendified$5,000 - $150,000 - 3 - 24
$5,000 - $150,000
61545350400 IOU Financial$5,000 – $100,000 15% + 12 – 18
$5,000 – $100,000
1001545264000 Company Capital$5,000 – $100,000 Starting at 6.87% 3 – 18
$5,000 – $100,000
51545177600 OnDeck$5,000-$250,000 8% - 29% APR 6 - 18
$5,000-$250,000
41545177600 Lending Loop$5,000 – $500,000 Starting at 5.9% 3 – 60
$5,000 – $500,000
51545264000 SkyCap Financial$500 - $10,000 12.99% – 39.99% 9 – 36
$500 - $10,000
1001561507200 Thinking CapitalUp to $300,000 - -
Up to $300,000
ProviderLoan AmountRateTerm (Months)Rating
00 Up to $50,000Prime – 46.96%3 - 120
Up to $50,000
31632960000 SafeLendUp to $50,000 15.99% + 12 -72
Up to $50,000
81624233600 Auto Credit DealsUp to $50,000 29.99% – 46.96% 12 - 96
Up to $50,000
171607558400 Helium Loans$500 - $50,000 - 24 - 60
$500 - $50,000
1001600646400 Iceberg Finance$1,000-$7,500 12.99% - 29.99% 12 - 84
$1,000-$7,500
1001594339200 Alphera Financial Services- - -
-
1001581033600 WeFinanceCars- + 4.9% -
-
1001581033600 Walker Financial Services- - -
-
1001580688000 Rifco- - -
-
1001579478400 National Powersports Financing- - -
-
1001579478400 LMG Finance- - -
-
1001578873600 iA Auto Finance- +8.99% -
-
1001578873600 Gamache Group- - -
-
1001551830400 Royal Bank of Canada (RBC)$5,000 - $10,000 - up to 84
$5,000 - $10,000
1001552262400 Laurentian Bank of CanadaUp to $250,000 - 12 - 60
Up to $250,000
1001552262400 National BankUp to $1,000,000 - up to 96
Up to $1,000,000
1001551830400 DesjardinsUp to $100,000 - 6 - 96
Up to $100,000
1001551830400 Canadian Imperial Bank of Commerce (CIBC)$10,000+ - 12 - 96
$10,000+
1001551830400 ScotiabankUp to $1,000,000 - up to 96
Up to $1,000,000
1001577059200 Daimler Truck Financial- - up to 72
-
1001577059200 DealerPlan Financial- - -
-
1001575849600 Coast Capital Savings- Starting at 4% Up to 84
-
1001575849600 Canada Auto Finance$5000 - $45,000 4.90 % - 29.95% APR 36 - 72
$5000 - $45,000
1001575849600 Credit River Capital Inc- - -
-
1001575590400 Capital Trust Financial- - -
-
1001575590400 Canadian Truck Loan- - -
-
1001575504000 Canada Car Loans- - -
-
61569974400 Car Loans Canada$7500 - $59,995 3.95% + 12 - 96
$7500 - $59,995
1001562112000 Car Creditex- Up to 49.9% -
-
1001561507200 Auto Capital Canada- - -
-
1001561507200 Carfinco- - Up to 84
-
11560124800 Canada DrivesUp to $100,000 3.99% - 19.9% 24 -96
Up to $100,000
1001548720000 Approve Canada- - -
-
1001548633600 2nd Chance Automotive- 4.2%+ -
-
1001545955200 Newstart CanadaUp to $20,000 19% - 49% 36 - 48
Up to $20,000
51545264000 SkyCap Financial$500 - $10,000 12.99% – 39.99% 9 – 36
$500 - $10,000
1001545177600 Splash Auto Finance by RifcoUp to $50,000 - -
Up to $50,000
1001545177600 Carloans411$5,000 – $40,000 - 12 – 72
$5,000 – $40,000
1001545177600 AutoArriba- - Maximum 84
-
ProviderLoan AmountRateTerm (Months)Rating
00 Up to $50,000Prime – 46.96%3 - 120
Up to $50,000
1001578873600 Instant Loans Canada$1,000 - $35,000 - 24 - 60
$1,000 - $35,000
1001545955200 Newstart CanadaUp to $20,000 19% - 49% 36 - 48
Up to $20,000
1001545264000 BHM FinancialUp to $25,000 - 12 - 60
Up to $25,000
ProviderLoan AmountRateTerm (Months)Rating
00 N/AN/AN/A
N/A
51700524800 Rocket Mortgage- - -
-
1001695772800 QuestMortgage- - -
-
41690934400 Neo MortgageVaries 5.54%+ Varies
Varies
21688601600 nestoMin $100,000 5.34%+ 2 - 10 years
Min $100,000
1001627344000 Peoples Bank- 1.94% - 2.45% 12 - 60
-
1001581033600 Mortgage Alliance- 2.74% - 6.30% 12 - 120
-
1001580947200 Paradigm- - -
-
1001580860800 Verico- - -
-
1001580860800 True North Mortgage- 2.64% - 4.45% 12 - 120
-
1001580860800 Tangerine$50,000+ 2.74% - 3.49% 12- 120
$50,000+
1001580860800 Turnedaway- - -
-
1001580860800 REICO- - -
-
1001580688000 Motusbank- 2.79% - 6.00% 6 - 60
-
1001579478400 Mortgage Architects- 2.74% - 3.70% 6 - 120
-
1001578873600 IntelliMortgage- - -
-
1001578873600 Invis- 2.69% - 3.95% 6 - 120
-
1001577059200 Dominion Lending Center- - -
-
1001577059200 First National Financial LP- 2.84% - 7.30% -
-
1001574899200 CHIP Reverse Mortgagemin 25,000 3.89.% - 4.84% 12 - 60
min 25,000
1001560124800 Centum- 2.89% - 3.79% -
-
1001548720000 Broker Financial Group Inc.- 2.41% - 3.84% -
-
11517097600 Alpine Credits$10,000+ Based on equity -
$10,000+
ProviderServicesRating
00 Debt Consolidation Program, Debt Settlement Program, Consumer Proposal, Bankruptcy Consultation
N/A (Referrer)
1001576540800 BDO Credit Counselling, Bankruptcy, Consumer Proposal
1001576540800 Full Circle Debt Solutions Inc Credit Counselling, Debt Management Program
1001576368000 Consolidated Credit Credit Counselling, Debt Management Program
1001576454400 4Pillars Debt Restructuring, After Care - Credit Rebuilding Program, Corporate Debt Restructuring

Any Newfoundland and Labrador consumer can take advantage of the benefits that come with a solid car loan. If you’re one of those hopeful drivers, you can use a car loan to:

  • Build, repair or improve your credit – Your lender or dealership should be relaying your car payments to one of Canada’s two credit reporting agencies (TransUnion/Equifax). If you’ve been making those payments on time and in full, your credit score will gradually rise, improving your whole credit report.
  • Drive a car that’s normally not affordable for you – Even factory floor models can be expensive, so a car loan can help you pay for one by stretching out your payments over a more reasonable schedule.
  • Get a new vehicle following an accident or breakdown – Either of these events can leave your current car completely undrivable. It’s best to get something more reliable if you want to get to work on time.
  • Change your lifestyle for the better – A new hybrid can save you money and be good for the environment. A new minivan can help you start a family. Don’t skip out on a great car just because the junker you have now is “good enough”.

The Way Bad Credit Changes Your Car Loan

If your credit is as worn out as your old vehicle, meaning your credit score is below 620 (Canadian credit scores range from 300-900), it can change your car loan in various ways. For instance:

  • Bad credit can make you a risky Newfoundland and Labrador borrower. Some lenders and dealerships might not approve your application.
  • Those that do approve you may give you a higher interest rate. A higher interest rate can cost you thousands more over the life of your car loan.

Don’t worry, you can still get approved if you:

  • Apply for a “secured” loan – Your odds will improve and your interest rate may be lowered if you offer your lender in in Newfoundland and Labrador some security upfront, such as your home, piece of land or another valuable asset. Just know that your asset will be at risk of seizure and sale if you don’t make your payments responsibly. To learn more about asset-based financing, watch this video.
  • Save for a down payment – Another way to earn your lender’s trust is to make a down payment for your car. This should give you a higher approval chance, a better interest rate, and a shorter overall payment term.
  • Find a bad credit lender/dealership in Newfoundland and Labrador If you don’t qualify with conventional lenders and dealerships, you can seek one that deals specifically with bad credit borrowers, of which there are many in Newfoundland and Labrador.

Want to know about bad credit loans in Newfoundland and Labrador? Click here.

If you’d prefer to raise your credit score, you can always:

  • Improve your credit profile – Making responsible payments for all your other loans and credit products is a good first step. It takes time and effort, but it’s still one of the most efficient ways to improve your creditworthiness.
  • Avoid credit inquiries – When a lender in Newfoundland and Labrador is considering you for a car loan, they’ll perform a “hard inquiry” to examine your credit report for signs of financial delinquency. Every hard inquiry deducts points from your credit score, which is why it’s best not to apply numerous times within a few months.
  • Request a higher credit limit or use less credit – Straying too close to your credit limit (common with revolving products) can also harm your score. Use a maximum of 30-35% for the best results. Trying to manage your revolving debt? Check this out.
  • Dispute credit reporting errors – It’s essential to maintain the health of your credit report, which contains a history of your credit activity over a certain number of years. Errors caused by improperly relayed information, spelling mistakes, fraud and identity theft can ruin your credit score before you even notice.

New vs. Used VehiclesTrying to decide between a new car and a used car? Check out this infographic.

Your Options in Newfoundland and Labrador: Vehicle Trade-Ins

Any car loan can be costly in Newfoundland and Labrador, even when you’re approved for a low-interest rate on a reasonably priced vehicle. One money-saving option is to trade in your used vehicle.

Here’s what the process looks like:

  • You must already own or be in the process of financing a vehicle that’s still got some market value to it. Get it inspected and appraised for a better idea of that value.
  • The same type of inspection process will likely be performed at the dealership.
  • If approved, the dealer will give you a quote based on how much they would be able to resell the car for.
  • You should keep your expectations low, as your dealer can’t give you top dollar if they want to make a profit.
  • If you like their offer, however, the quoted amount will be subtracted from the initial price of your new car, making it slightly more affordable.

Other Options in Newfoundland and Labrador: Vehicle Title Loans

This will only work if you own your car completely, meaning no payment balance remains. If so, you can leverage your car title in exchange for regular loan money, which you can use however you’d like. Similar to a trade-in, your car will be evaluated and you’ll be given a quote based on your lender’s expectations for resale. Your car title then acts as collateral to secure the loan. If you default on too many payments, your lender has the right to sell your vehicle at auction to regain part of their loss.

For more information about borrowing using your car title, check this out.

Approval Granted: Cars and Vehicles Available for Purchase in Newfoundland and Labrador

Once you’re approved, you should have a whole selection of cars and other vehicles to choose from. However, your selection generally depends on elements such as:

  • Your budget – A car loan may only put you in terrible debt if it can’t actually fit into your budget. Always factor your payments, interest rate, and other fees into your list of everyday expenses before you buy it.
  • Your dealership’s inventory Before applying, make sure your dealership in Newfoundland and Labrador actually has the car you need. If not, you’ll be putting a hard inquiry on your credit report for no reason.

  • Your credit, income and employment history For obvious reasons, your options will be more limited if your lender in Newfoundland and Labrador thinks there’s a chance you won’t keep up with your payments.

However, a decent financial profile will help you purchase vehicles of all kinds, such as:

  • Sedans
  • Minivans and oversized-vans
  • Hatchbacks
  • SUVs
  • Pickup trucks
  • Recreational vehicles:
    • Motorcycles, roadsters, etc.
    • Motorhomes, trailers, etc.
    • Boats, jet-skis, etc.
    • Snowmobiles, all-terrain vehicles, dirt-bikes, etc.

Frequently Asked Questions

How can I use my car to get cash?

Refinancing your vehicle is a creative way to get a cash loan and it is potentially a good option for other reasons as well. You can use “cash-out refinancing” to get yourself a cash loan for an emergency. If your car is relatively newer and already has a substantial amount of it paid off, you can turn that equity into cash. Also, if you find that you can no longer budget for your car’s monthly payments, refinancing can help spread out the loan over a longer-term and lower the payments. You might pay more in the long term, but at least you’ll have peace of mind knowing you can make the payments in time. Lastly, another use for car refinancing is to save money. This can be done if you can refinance at a lower interest rate or if you can shorten the term of your loan.

Can I still get a car loan if I have bad credit?

If your credit score is below 650, you may still have some options for car loans. With a lower score comes higher rates, which can be between 8.99% up to 29.99% for non-prime car loans. The exact rate you’ll get depends on other factors as well. New cars will have lower rates than used cars but require higher credit scores to qualify. The shorter the length of the loan, the lower your rate will be — but your monthly payments will have to be higher. Lastly, a higher down payment should also help lower your rate. At a bare minimum, you’d be required to have held a job for at least 3 months, have a valid bank account, and earn between $1600 to $2000 per month. Of course, you’ll also need a valid driver’s license.

Do I get charged a penalty for paying my car loan off early?

In most cases, paying off your loan early will invariably save you money because there is less time for interest to accumulate. This sort of loan is called “open-end”, and some car loans are structured this way. Unfortunately, most are not structured in this way, especially for those who have poor credit. The amount of interest you pay on a car loan is usually precalculated, meaning the total amount of interest you pay is the same whether you pay it off early or not. You can even incur what’s called a prepayment penalty simply for making one extra payment. That said, some of these types of contracts do have what’s called a prepayment privilege. This allows you to make early payments up to a certain amount so you can still save a bit on interest. In some cases, it might still be worth it to pay the penalty and get out of the contract early. Make sure to consult with your lender to determine the full conditions of your contract.

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