Consumer Proposal Auto Finance

Consumer Proposals have become quite common in Canada and lenders that in the past would not extend credit to individuals in a proposal until they were almost complete are now offering auto financing credit to people in almost all stages of a consumer proposal.

You do have options available if you need a car while in a proposal. To explore your vehicle finance options simply complete the car loan application or contact us.

Information about Consumer Proposal

A consumer proposal is a negotiated settlement between an individual and their creditors. It acts as an alternative to bankruptcy allowing the consumer to pay back a portion of their debt, while offering the creditors a chance to get back more money than a bankruptcy would allow. A consumer proposal is similar to debt consolidation, in that it can convert multiple loans into one monthly payment. It still however has many parallels with a bankruptcy.

Just like filing a bankruptcy in Ontario, a consumer proposal requires you to obtain the services of a licensed trustee to initiate and manage the proposal process. While it remains similar to both debt consolidation and a personal bankruptcy, the consumer proposal is still very different in both its procedure and its advantages.

Unlike a traditional personal bankruptcy, a consumer proposal lasts longer (in most cases 5 years). This allows you to resolve a portion of your debt over an extended time, while still letting creditors receive a bigger portion of the debt they are owed. Here are some specific advantages to a consumer proposal:

Advantages to a Consumer Proposal

• You can negotiate the pay back a portion of the debt you owe

• Collection activities stop (No more collection calls or wage garnishment)

• Your creditors take a smaller loss than they would if you filed a personal bankruptcy

• A proposal can be less damaging to your credit history than a personal bankruptcy

• You don’t have to lose your house

• You won’t lose your other assets

• You still have the option of financing an auto loan in a Consumer Proposal!!

• It shows creditors that you are willing to work with them, showing character and commitment

If you’re discharged from a consumer proposal or even still in proposal, then you can get approved for an auto loan. While the major banks don't offer auto financing for people in a consumer proposal, there are many lending companies available to car dealers that offer special bankruptcy car loan and consumer proposal auto loan programs that allow individuals inside a consumer proposal or discharged from a proposal to finance a car loan. A consumer proposal auto loan is not limited to used vehicles or new cars. You can be qualified for any new or used car you choose.

If you are in a consumer proposal, let us help you get approved for consumer proposal auto financing, driving, and on the road to good credit.