How to Get a Car With Terrible Credit in Canada in 2025

Wondering how to get a car with terrible credit in Ontario? You’re not alone. Many people across the province find themselves in tough financial situations due to job loss, unexpected expenses, or past financial mistakes.

 

While it can be more challenging, getting a car with poor credit is absolutely possible — and often necessary.

 

Let’s break down exactly how to get a car with terrible credit in Ontario without falling into a high-interest trap or getting overwhelmed by shady offers.

 

 

Start by Knowing Your Credit Standing

 

Before looking at vehicles or lenders, find out exactly where you stand. You’re entitled to a free credit report in Canada, which you can get from Equifax or TransUnion. While your credit score might be low, that’s not the full story.

 

Take a look at what’s causing it — missed payments, high balances, or defaults.

 

Understanding your credit situation helps you focus on lenders and dealers who specialize in helping people in similar situations. It's the first essential step in figuring out how to get a car with terrible credit that you can actually afford.

 

Stick to a Realistic Budget

 

One of the biggest mistakes people make is trying to finance a vehicle that’s beyond their means. When you're figuring out how to get a car with terrible credit, the goal should be a dependable, budget-friendly vehicle that fits your financial reality.

 

Use an online auto loan calculator to estimate monthly payments. Don’t forget to factor in insurance (which can be higher for poor credit customers), fuel, and maintenance.

 

Look Into “Second Chance” Auto Financing

 

In Ontario, several lenders and dealerships offer what’s often called “second chance” auto financing. These are specifically designed for individuals with poor or limited credit histories.

 

They evaluate your current income and ability to make payments, sometimes more than your past credit behavior.

 

If you're searching for how to get a car with terrible credit and want to avoid traditional banks, this can be a solid option. Just make sure to read all terms carefully. Some of these loans come with higher interest rates, so understanding the full cost is key.

 

Boost Your Approval Odds With a Down Payment

 

The more you can put down up front, the better your chances of approval — and the less you’ll owe over time. Even a few thousand dollars can significantly improve your chances when learning how to get a car with terrible credit in Ontario.

 

A down payment also shows lenders you’re serious and financially committed, which is especially valuable when your credit history isn’t ideal.

 

Consider a Co-Signer

 

If you have a trusted family member or friend with better credit, you can ask them to co-sign the loan. This means they’re agreeing to take responsibility if you can’t make payments. While it’s a big ask, it can lead to lower interest rates and higher approval chances.

 

When thinking about how to get a car with terrible credit, a co-signer can be one of the fastest ways to get access to better financing terms.

 

Shop Around for Lenders That Work With Poor Credit

 

Not all lenders are the same. Some specialize in working with people who have poor credit and may offer more reasonable terms than traditional lenders. Many dealerships in Ontario work directly with these types of lenders.

 

When figuring out how to get a car with terrible credit, don’t settle for the first offer. Compare several — you might be surprised at the range of interest rates and loan terms out there.

 

Avoid High-Pressure Dealers

 

If a dealer is pushing you toward a specific vehicle or seems more interested in closing the sale than understanding your needs, walk away. A trustworthy dealer will explain the terms, answer your questions clearly, and let you take your time.

 

When exploring how to get a car with terrible credit, it’s important to protect yourself from high-pressure tactics that lead to long-term debt or unreliable cars.

 

Final Thoughts

 

Learning how to get a car with terrible credit in Ontario is all about preparation, smart decision-making, and understanding your options.

 

You don’t need perfect credit to get reliable transportation — just a realistic approach, a bit of patience, and a plan that fits your budget.

 

Stay focused, do your homework, and take control of the process. The right car and financing are out there — even with terrible credit.

 

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.