How to Get a Car Loan with Bad Credit

Having bad credit doesn’t have to mean you can’t buy a car, nor does it mean you can’t get a car loan with terms that don’t break your budget.

Being in a bad credit situation is becoming increasingly common, with some studies saying that 20% of Canadians have a credit score of less than 680, which is widely considered as “bad credit”.

The most important thing when it comes to getting a bad credit car loan is shopping around: taking the first-rate you’re offered is a big no-no!

How to Get a Car Loan with Bad Credit in 5 Steps:

Here are five steps to getting a car loan even if you have bad credit:


Whether your credit is good or bad, understanding your credit situation is important when looking for a new vehicle. If you understand where you’re at with regard to your credit, you’ll be able to make more informed decisions when applying for your car loan.

Quite often customers come to us with little to no insight into their credit situation, which is okay, but we want to make sure that as we are working with you, we are informing you and helping you understand your situation. Signing off on a car loan without understanding your credit situation could be disastrous for you in the long run.

When working with our team at Open Road Outlet, the first step in our process is to help you gain a complete understanding of your current financial situation. When we help our customers understand their financial situation, we can help them make a better decision about the loan.


The monthly payment for a fully loaded truck is much more than the payment on a compact sedan! When you’re in the market for a new vehicle it’s important you’re realistic about what you can afford. Nobody wants to get into a vehicle and take on a vehicle loan they can’t afford, so knowing your budget is crucial.

Quite often customers come to us with a clear idea of the type of vehicle that they want, but they aren’t exactly sure what they can afford. Part of our process is to work with our customers to help them understand their financial situation, which helps us determine a monthly payment that fits their budget. From here we are able to figure out a monthly payment that works and ultimately a vehicle that fits both lifestyle and budget.


One of the most frustrating experiences as a consumer when vehicle shopping is finding your dream vehicle and going through all the steps to purchase it, only to find out you can’t get approved for the loan. For this reason, we recommend potential buyers get pre-approved before getting too deep into their vehicle selection process.

When you are pre-approved for a specific loan amount you can shop with confidence. Learn more about why you should get pre-approved for your car loan.

The pre-approval process at Open Road Outlet is designed to be simple, easy, and hassle-free. All you need to do is fill out the quick application on our website (or give us a call) and we can have you pre-approved and shopping quickly.


When applying for a new car loan, potential buyers will often apply at multiple dealerships over a short period of time, which can actually have a negative impact on your credit score. Lenders usually want to look at your credit history to get a complete picture of your financial situation. These ‘credit inquiries’ can knock your credit score down.

Something else to be aware of is that some dealerships, especially the ones who DON’T lend their own money, will shop (or ‘shotgun’) your car loan application to many different lenders to see which ones will approve your loan. The process usually only takes a few minutes and enables lenders to compete for the loan. At Open Road Outlet, we finance the vehicles we sell with our own money, so we don’t shop your car loan application to multiple lenders.


Some car dealers and car salespeople have given the industry a bad name with their “fly-by-night” business practices. These dealers sometimes prey on folks who have bad credit and are desperately looking for a car loan. It is important, especially when shopping for a bad credit car loan, that you work with a reputable outfit that you can trust.

At Open Road Outlet, we finance the vehicles we sell with our own money (also known as in-house financing) so we don’t shop your car loan application to multiple lenders.

There are a number of reasons a person could find themselves in a bad credit situation and in need of a bad credit car loan. Chances are if you’re reading this post, you’ve had some questions about your credit and whether or not you’d qualify for a car loan.

The good news is, getting a car loan with less than perfect credit isn’t as daunting as you’re probably thinking. At Open Road Outlet we specialize in helping Manitobans with less than perfect credit, secure vehicle financing in-house. Contact us to see how we can help you!


Bad Authentication data.

More Blog Posts

How to Get Out of a Car Loan Explained

How to Finance a Used Car in Canada

How to Check Your Credit Score 101