FAQ

FAQ

Why Choose Drive Financial?
  • Drive financial is a company that caters to clients nation-wide, we have the ability to offer lower rates due to the volume of business that is generated.
  • We can provide Automotive, Motorcycle and Recreational vehicle loans to nearly anyone in Canada, regardless of your financing needs or current credit situation.
  • Drive Financial is one of the most popular and trusted online car loan services in Canada. We are 100% Canadian and family owned! We have been helping Canadians obtain car loans for over 5 years... And we're VERY good at it.
What information do I need to qualify for a loan?
  • Social insurance number
  • Address and previous address (if current address is less than 3 years)
  • Income (employer info, how much you make)
  • Monthly housing costs (rent, mortgage, hydro, property tax)
Why is Drive Financial better than dealing with a store?
  • At drive Financial we have lenders who will understand your needs and will carefully consider your current circumstance rather than any credit history that may be un-favourable. Our goal is to take the pressure off. And help you obtain financing before you ever visit a dealership!
  • We have helped hundreds of people get Automotive, Motorcycle and Recreational vehicle loans, and continue to maintain the highest level of service.
  • Bad credit does NOT mean poor service.
What documents do I need to get a loan?
    To get you started here is the checklist:
  • Proof of income (Last two paystubs)
  • Proof of residence (Recent bill: Gas, Water, Electric, Phone or Cable)
  • Government photo ID (Drivers license, Passport, Permanent resident card or status card)
  • Banking information (Void Cheque or Preauthorized payment form)
How long does it take to get approved?
  • You need to fill out our online Loan Application form. During this step you are asked for some basic information such as your employment, your address, and your contact details.
  • So, how long does it take to a get a loan approved? The answer is that it depends. Some Lenders have longer processes than others, but from start to finish the process can take a couple hours to a couple weeks.
Are there penalties for paying off my loan early?
  • Early repayment penalties or exit fees are usually included in the loan contract before you sign, so if you know you're going to be paying early, avoid lenders that charge one.
  • Once you pay off your personal loan, it will be considered a closed account on your credit report. If closing that account reduces the diversity of your credit portfolio or shortens your payment history, you may end up hurting your credit score even though you're saving money on interest and paying off your loan. However, closing an account is inevitable. You won't be paying your loan off forever so making early repayments on your loan can save you hundreds or even thousands of dollars in interest in the long run.
Can I trade in my vehicle?
  • YES! In fact we have no problem taking in your trade that isn't paid off yet. It's very common for clients to trade in their financed vehicles. We deal with your bank or financial institution in order to pay off the loan for you. The result is that you usually won't even have to bother calling your bank to inform them you're trading your car in; at Drive Financial we do all the legwork for you!
How long does it take to complete the online process?
  • Simply apply using our fast and easy application, and our approval process will guide you through the entire process. This should only take a FEW minutes!
Can I get approved if I have a low credit score or collections?
  • YES! It's time to move on and get your credit back on track! The minimum requirement for a person to qualify for an Automotive, Motorcycle or Recreational vehicle loan with low credit is that they make at least $1,800 every month before taxes or deductions (CPP,EI,Child tax,Etc).
Can I finance a vehicle while in bankruptcy or consumer proposal?
  • Bad credit can happen to anyone! If you are one of these people who have faced bankruptcy, consumer proposal or may have terrible credit, there is no need to worry. Our specialists will match your application with a lender that specializes with your credit situation.
How is my Monthly Payment Determined?
  • The Age of the Vehicle
  • The Vehicle's Mileage
  • Your Credit Rating in Canada
  • Your Down Payment
If I am unable to make my payment, will my car be repossessed?
  • If you have purchased a new or used vehicle, you may end up in a situation where you can't make your monthly car payments. If this is the case, don't panic – there are some steps you can take to avoid repossession, and keep your car.
    • Refinance your loan.
    • Consider selling your vehicle or trade in for a lower payment.
    • Use a home equity line of credit.
    • Contact your lender and request a deferral
What happens if my vehicle is worth less than I owe?

If you are in a position where the market value of your vehicle is less than you owe you are "Upside-Down" or Underwater". To combat this situation we will often suggest rolling the negative equity into the loan for your next vehicle. Though convenient, in some cases this is unwise since it will make you upside-down even further and this means that you're creating a larger loan amount, and paying more interest. However, if you need a vehicle but don't have the money to pay off the negative equity and are having trouble keeping up with your current payments, it might be worth the risk. If you decide to downsize, by purchasing a cheaper vehicle, your payments may become more manageable even if you roll the remaining debt into the new vehicle loan.

Can I make extra payments on my auto loan?

YES! Paying a little extra each month on your vehicle loan can make a big difference in how quickly the loan will be paid off. Making extra payments can help you gain control over your finances, save money and give you peace of mind. This is a great way to reduce the long-term cost of your vehicle loan. By reducing your vehicle loan, you will have more money for other purposes. The secret to paying of a vehicle loan is paying off the principal first. Extra vehicle payments have a multiplier effect. If you pay off $100 early, it could save you more than $100 in vehicle payments due to the effects of compound interest. Just imagine what you could do with that extra money the first month after your vehicle is paid off.

Can I change my payment dates?

If you're looking to change your vehicle loan payment date the first thing you need to do is contact your Lienholder (Finance Company) to see if the option is available. If it is, you can change the due date online or over the phone. Changing your vehicle loan payment date to something that makes sense for you financially can help improve your cash flow and your overall finances. It makes budgeting easier and helps avoid any late fees or insufficient fund fees!

What information do I need to provide if I am self employed?
  • If you are self employed you will need the following documents:
    • Tax returns. Be prepared to show the last two years of your full personal and company tax returns. These will help prove any income you declare on your application.
    • Financial statements. These may include any profit and loss statements to also support the income you declare.
    • Recent bank statements. This includes statements showing your savings and business transactions.
    • Company-specific information. If you own your own business, be prepared to provide information such as your company's GST number, address, etc.
    • Personal identification. Depending on the lender, this may be your driver's license, passport or any government ID.
Can I get approved if I am new to the country?
  • YES! If you are a new immigrant to Canada – welcome! To get you started you will need the following documents:
    • Proof of income (Last two paystubs)
    • Proof of residence (Recent bill: Gas, Water, Electric, Phone or Cable)
    • Banking information (Void Cheque or Preauthorized payment form)
    • Social Insurance number
Can I have more than one vehicle loan?

YES! You can apply for a second car loan, The main thing which the lenders would look at would be your payment record i.e. whether you have made prompt payments on your existing and past loans. Missing too many payments would lead to a drop in your credit score thus making it harder for you to obtain another loan. Secondly, your ability to pay back your loan is also assessed by the lender. For this purpose, lenders look at your monthly disposable or surplus income and some other factor's such as the assets, income from other sources, liabilities and stability of income. This is done to make sure that you comfortably repay your loan on time.

Do I get a referral for sending someone to Drive Financial?

YES! Our customers are our greatest resource and we know that the best way to grow is through word of mouth. The highest compliment you could pay us would be to pass along your positive experience with Drive Financial to your friends, family, co-workers or someone you just met. Simply send us an email with the basic information of the person you're referring (Name, Phone #, Email address) as well as your own contact info (Name, Phone #, Email address). When they purchase a new or pre-owned vehicle, you receive $1000! The more people you refer the more you make! Drive financial staff are not eligible. Management reserves the right to discontinue or modify the program at any time.

What is the best way to check my credit score?

You can ask for a free copy of your credit file by mail. There are two national credit bureaus in Canada: Equifax Canada and TransUnion Canada. You should check with both bureaus.

  • Order by mail or fax
    • Make your request in writing using the forms provided by Equifax and TransUnion
    • Provide copies of two pieces of acceptable identification, such as a driver's licence or passport
    • You must receive your credit report by mail.

    Order by Telephone

  • Call the credit bureau and follow the instructions
  • Confirm your identity by answering a series of personal and financial questions
  • You may also need to provide your Social Insurance Number and/or a credit card number to confirm your identity
  • You must receive your credit report by mail.