Consumer Proposal Car Loans in Canada

Vehicle Financing During a Consumer Proposal

A consumer proposal is a formal debt repayment arrangement governed by the Bankruptcy and Insolvency Act. While a consumer proposal affects your credit, it does not necessarily prevent you from obtaining vehicle financing. Some lenders offer programs specifically for applicants in a consumer proposal.

What You May Need

When applying for vehicle financing during a consumer proposal, participating dealers may request:

• Confirmation of your consumer proposal status
• Trustee approval or consent (in some cases)
• Proof of current income and employment
• Information about your proposal payment schedule
• Details about your vehicle needs and budget

How Your Approval Helps

We do not guarantee approval or specific terms. Our role is to connect you with participating dealers that have experience reviewing applications from applicants in consumer proposals. After you submit your application, our team reviews your information and connects you with a dealer that can assess your options.

Consumer Proposal vs. Bankruptcy

A consumer proposal and a bankruptcy are both formal debt solutions governed by the Bankruptcy and Insolvency Act, but they work differently:

• Consumer proposal — You repay a portion of your debts over a set period (typically up to 5 years)
• Bankruptcy — Most debts are discharged, but assets may be affected

Both affect your credit, but some lenders view a consumer proposal more favourably because you are actively repaying a portion of your debts.

Completing Your Consumer Proposal

If you have completed your consumer proposal, you may be in a stronger position to obtain vehicle financing. Completing the proposal demonstrates a commitment to resolving your debts, and some lenders offer programs specifically for applicants who have completed a consumer proposal.