Consumer Proposal Auto Financing
Filing a consumer proposal means you took control of your debt. Now, take control of your drive. We get you approved whether your proposal is active or paid off.
Quick AnswerCan I be approved during an active Consumer Proposal?
Yes. You do not need to wait for your consumer proposal to be fully discharged. Our specialized lending partners understand that your proposal consolidated your debts into one affordable monthly payment, freeing up your income to afford a vehicle.
Financing Strategies for Proposals
A consumer proposal is an incredibly smart financial move when dealing with overwhelming debt. However, traditional banks will automatically decline you because the proposal severely impacts your credit score.
At Always Approved, we skip the algorithms. We connect you with alternative lenders who analyze your current debt-to-income ratio (DTI). Since your proposal reduced your debt obligations, you are actually in a stronger position to afford a car payment than before you filed.
Rebuild Your Credit
Making auto loan payments on time forces your score back up alongside your proposal.
Timing is Everything
The earlier you secure an auto loan in your proposal phase, the sooner your credit begins its recovery.
Minimum Application Requirements
- ✓ Employed earning $1,800+ monthly
- ✓ Valid Ontario Driver's License
- ✓ No repos over the last 12 months
Frequently Asked Questions
Can you get a car loan after bankruptcy in Canada?
Yes. You can get a car loan after bankruptcy in Canada, even immediately after discharge. Specialized lenders like Always Approved work with discharged bankruptcies and active consumer proposals. The key factors are steady income, a reasonable down payment, and applying to the right lender.
What credit score do you need for a car loan in Canada?
Traditional lenders typically require a 650+ credit score. However, bad credit specialists like Always Approved work with credit scores as low as 300. What matters more than your score is your current income, employment stability, and down payment amount.
Can I get a car loan while in an active consumer proposal in Ontario?
Yes. You do not need to wait until your consumer proposal is fully paid off. We work with specialized lenders who will approve you for auto financing while your proposal is still active, provided you have a stable source of income.
Will my trustee allow me to finance a vehicle?
Generally, yes. Most Licensed Insolvency Trustees support acquiring a vehicle if it is necessary for you to get to work and earn income. We structure loans with payments that fit within your new, manageable post-proposal budget.
Does a car loan help after a consumer proposal?
Yes, an auto loan is one of the most powerful tools to rebuild your credit after a consumer proposal. Regular on-time payments are reported to the credit bureaus, gradually pushing your score back up over time.