How To Buy a Car With a Minimum Wage Job in Canada

Buying a car on minimum wage might sound impossible, but it’s not.

 

It just takes careful planning, realistic expectations, and knowing your options. If you earn minimum wage in Ontario, you can still buy a car, but it’s important to understand the costs and make smart decisions.

 

In this article, we’ll walk you through how to buy a car on minimum wage, and what to look out for along the way.

 

What's The Minimum Wage in Ontario?

As of 2025, Ontario’s minimum wage is $17.20 per hour. If you work full-time (about 40 hours a week), that adds up to roughly $2,648 per month before taxes.

 

After taxes, you might take home around $2,200 to $2,350 per month, depending on your situation.

 

Now let’s look at what it really costs to own a car.

 

Costs of Owning a Car

Before you buy a car on a minimum wage, you need to understand all the costs involved. It’s not just the car payment. Here’s a breakdown:

 

• Car Loan Payment: $250 to $400/month (for a used car)
• Insurance: $200 to $300/month (especially if you’re under 25)
• Gas: $150 to $250/month
• Maintenance and Repairs: $50 to $100/month
• Registration and Licensing: about $120/year (or $10/month)

 

This means you could be spending $600 to $1,000 per month just to own and drive a car. If you take home $2,300 a month, that’s around 25% to 40% of your income.

 

 

Tips to Afford a Car on Minimum Wage

Buying a car on minimum wage is possible, but it means being smart with your money. Here are a few tips:

 

• Choose a Budget-Friendly Used Car: A used car is usually more affordable than a new one. Look for cars that are fuel-efficient, reliable, and cheap to repair. Popular models like the Honda Civic, Toyota Corolla, or Hyundai Elantra are good choices.

 

• Make a Down Payment: Even a small down payment of $1,000 to $2,000 can help lower your monthly payments. Try to save up before financing a car.

 

• Consider a Co-Signer: If your credit isn’t strong, having a co-signer (like a parent or trusted friend) can help you get approved for a loan with better interest rates.

 

• Keep Loan Terms Short but Affordable: A longer loan term means lower monthly payments, but you’ll pay more interest. Try to keep it under 5 years (60 months) if possible.

 

• Get Pre-Approved: Visit a dealership that works with various lenders. This can help you get pre-approved for financing so you know how much car you can afford before shopping.

 

• Don’t Forget Insurance: Call a few insurance companies and get quotes before buying the car. Make sure you can afford the insurance on top of the car payment.

 

Alternatives to Buying a Car

If the costs are still too high, consider other options:

 

• Buy a cheaper car in cash, even if it’s older. You’ll avoid monthly payments.
• Use public transit or carpool while you save up.
• Finance through a dealership that works with all credit types.

 

At our used car dealership in Ontario, we help people from all walks of life—including those earning minimum wage—get approved for vehicles that fit their budget.

 

We’ll walk you through the process and help you find something reliable and affordable.

 

If you're ready for a car loan in Southern Ontario, we'd love to help with that! Simply fill in the form below to get started.