Subprime Financing

Subprime financing refers to auto loans arranged for customers with poor or limited credit histories, often at higher interest rates due to the increased risk. Canadian dealerships often work with specialized lenders to secure approvals for subprime borrowers, helping people with past credit issues buy a vehicle. These loans may require proof of income or a larger down payment and usually come with higher APRs. Dealership staff need to manage subprime deals carefully, ensuring the terms are clear and that customers can afford the payments to avoid future defaults.