Best Used Cars for Bad Credit Financing in Ontario
Not all used cars are created equal when it comes to bad credit financing. Here are the models that lenders prefer and why they're your best bet for approval.
Why Vehicle Choice Matters for Bad Credit Financing
When you have bad credit, lenders are more selective about which vehicles they'll finance. They prefer cars that:
Hold Their Value
If they need to repossess, they want a vehicle they can resell easily.
Are Reliable
Fewer repairs mean you're more likely to keep making payments.
Have Low Mileage
Lower mileage means less depreciation and better resale value.
Are Popular Models
High demand makes them easier to sell if needed.
Top 10 Used Cars for Bad Credit Financing
1. Honda Civic (2016-2019)
Best OverallThe gold standard for used car financing. Reliable, fuel-efficient, and holds value better than almost any other compact car.
- • Excellent reliability
- • Strong resale value
- • Low maintenance costs
- • Easy to get approved
- • Lower interest rates
- • Available at most dealers
- • 2016: $14,000-$18,000
- • 2018: $16,000-$22,000
- • 2019: $18,000-$24,000
2. Toyota Corolla (2015-2018)
Most ReliableToyota's reputation for reliability makes this an easy sell to lenders. Low maintenance costs and excellent fuel economy.
3. Hyundai Elantra (2017-2019)
Great ValueOffers near-luxury features at an affordable price. The long warranty transfers to second owners, reducing lender risk.
4. Nissan Sentra (2016-2018)
Affordable, spacious, and fuel-efficient. While not as prestigious as Honda or Toyota, it's reliable and lender-friendly.
5. Ford Focus (2016-2018)
Good value for money with decent reliability. Avoid the automatic transmission models and stick with manual transmission for better reliability.
SUVs That Lenders Approve
If you need more space, these SUVs are good options for bad credit financing:
Honda CR-V (2015-2017)
The compact SUV king. Reliable, practical, and holds value exceptionally well.
Expected Price: $18,000-$25,000
Toyota RAV4 (2014-2017)
Proven reliability and all-wheel drive capability make this popular with lenders.
Expected Price: $17,000-$24,000
Hyundai Tucson (2016-2018)
Good warranty coverage and competitive features at a lower price point.
Expected Price: $16,000-$22,000
Mazda CX-5 (2016-2018)
Fun to drive with good build quality, though slightly more expensive to maintain.
Expected Price: $17,000-$23,000
Cars to Avoid with Bad Credit
Some vehicles make approval more difficult due to poor reliability, high maintenance costs, or rapid depreciation:
Avoid These Models:
- • BMW, Mercedes, Audi
- • High maintenance costs
- • Rapid depreciation
- • Expensive parts
- • Chrysler 200
- • Mitsubishi Mirage
- • Jeep Compass (older models)
- • Any car with accident history
What to Look for When Shopping
Ideal Vehicle Criteria
- • 3-7 years old
- • Under 100,000 km
- • Clean title (no accidents)
- • Maintenance records available
- • Popular brand and model
- • Reasonable asking price
Red Flags to Avoid
- • Accident damage or flood history
- • Over 150,000 km
- • Multiple previous owners
- • No maintenance records
- • Modifications or aftermarket parts
- • Price significantly below market value
Financing Tips for Your Chosen Vehicle
Maximize Your Approval Chances
Ready to Find Your Perfect Used Car?
Get Pre-Approved Today
Don't waste time looking at cars you can't finance. Get pre-approved first to know exactly which vehicles and price ranges work with your credit situation. We work with lenders who understand that the right vehicle makes all the difference.