--- title: "Car Loan During a Consumer Proposal | usedcarnearme.ca" description: "Can you get a car loan during an active consumer proposal in Canada? Yes, in some cases. What lenders need from the trustee and what changes after." canonical: https://www.usedcarnearme.ca/en/guides/car-loan-during-consumer-proposal --- [Guides](/en/guides) / [Active or completed consumer proposal](/en/car-loans-consumer-proposal) # Getting a car loan during or after a consumer proposal A consumer proposal is the most common insolvency in Canada, and the question we hear most is whether you have to wait until it is finished to buy a car. You do not always have to. Here is how it works on both sides of the river. Updated 9 September 2026 ยท 3 min read The guide 1. [During an active proposal](#s1) 2. [After the proposal is completed](#s2) 3. [What the lender will ask for](#s3) 4. [Differences between provinces](#s4) 5. [Rebuilding while you drive](#s5) 6. [What to say to your trustee](#s6) 7. [Trading a car you already have](#s7) The short version - Some lenders approve a car loan during an active consumer proposal when the trustee confirms the payment fits. - After the certificate of full performance, more lenders open up and rates drop. - Bring the trustee's contact details and a statement showing proposal payments are current. ## During an active proposal Some lenders approve buyers who are still making proposal payments. Two things make it possible: the trustee confirms in writing that the new car payment fits your budget, and your proposal payments have been on time. Rates are higher during this stage, and the vehicle budget is usually kept modest so the payment stays comfortable. ## After the proposal is completed Once you hold the certificate of full performance, the pool of lenders opens up and rates drop. A completed proposal stays on your credit report for three years after completion, but lenders that specialize in rebuilding credit expect to see it and weigh your income and payment history instead. ## What the lender will ask for Beyond the standard documents, bring the proposal paperwork itself. - Your trustee's name and contact details, and the proposal number. - A statement showing your proposal payments are current. - The certificate of full performance, if the proposal is complete. - Proof of income and address as for any car loan. ## Differences between provinces The proposal itself is federal, so the rules are the same. What changes is the purchase: an Ontario buyer registers at ServiceOntario and pays HST, a Quebec buyer registers with the SAAQ and pays GST plus QST, and buyers in Nova Scotia, New Brunswick, Prince Edward Island, and Newfoundland and Labrador pay HST at 14 or 15 percent and need a current provincial inspection on the vehicle. If you live in Gatineau and the right car is on the Ottawa side, the vehicle needs an SAAQ inspection before it can be registered in Quebec. We handle that step. ## Rebuilding while you drive A car loan reported on time every month is one of the fastest ways to rebuild after a proposal, because it is a new, current trade line that lenders read as evidence you are back on track. Many buyers refinance to a lower rate after twelve to eighteen months of clean payments. ## What to say to your trustee Ask one question: will you confirm in writing that a car payment of this amount fits my proposal budget. Trustees answer that routinely; it is part of the job. Bring the estimate from our calculator so the number is specific. A vague request gets a vague answer, and lenders will not act on a vague answer. ## Trading a car you already have If a vehicle loan was included in the proposal, the vehicle usually went back or was kept under a reaffirmed payment. Either way, tell us. A kept vehicle with a current payment can be traded, and its equity, if any, becomes your down payment. A returned vehicle leaves a deficiency that the proposal is settling, which lenders read as resolved. [Get pre-qualified during a proposal](/en/apply) Questions ## Questions people actually ask Will the trustee allow a car loan? Usually, if the payment fits within your proposal budget. Ask your trustee before you apply, and tell us on the form that your proposal is active so we plan around it. How high will the rate be? Higher than prime during an active proposal, lower once it is complete. The exact rate depends on income, down payment, and the vehicle. We show you the real number before you sign anything. Does a co-signer help? It can lower the rate, but it is not required. Most approvals during or after a proposal are made without one. Related ## All guides - [01The documents you need for a car loanRead the guide](/en/guides/documents-for-a-car-loan) - [02Getting a car loan as a newcomer to Canada with no Canadian creditRead the guide](/en/guides/car-loan-new-to-canada) - [03Getting a car loan after a repossessionRead the guide](/en/guides/car-loan-after-repossession) - [04How much car you can actually affordRead the guide](/en/guides/how-much-car-can-you-afford) - [05How soon after a bankruptcy discharge you can get a car loanRead the guide](/en/guides/car-loan-after-bankruptcy-discharge) - [06Do you need a co-signer for a car loan?Read the guide](/en/guides/co-signer-for-a-car-loan) - [07The best used cars to finance with bad creditRead the guide](/en/guides/best-used-cars-to-finance-with-bad-credit) - [08Extended warranty and GAP insurance on a financed used carRead the guide](/en/guides/used-car-warranty-and-gap-insurance) - [09Car loan calculatorEstimate a payment](/en/car-loan-calculator) ## Know in two minutes. Free, about two minutes, no credit pull. [Get pre-qualified during a proposal](/en/apply)