A consumer proposal is a formal agreement with your creditors to pay a portion of your debt — an alternative to bankruptcy that many Canadians choose. While it impacts your credit, it also provides a structured path to debt relief.
How Consumer Proposals Affect Credit
When you file a consumer proposal, it appears on your credit report and typically remains for three years after completion. During this time, traditional lenders may be hesitant to approve new credit, including auto loans.
However, a consumer proposal also means you're actively addressing your debt — which some specialized lenders view positively compared to unresolved defaults.
Can You Get a Car Loan with a Consumer Proposal?
Yes — but your options depend on:
- Whether your proposal is active or completed
- Your current income and employment
- Your down payment amount
- The vehicle you're looking to finance
Specialized auto lenders and programs exist specifically for Canadians in consumer proposals. The Approval Centre works with these programs daily.
Moving Forward with Confidence
Don't assume a consumer proposal closes every door. With honest guidance and the right lender match, many of our clients drive away in reliable vehicles while continuing their proposal payments.
Talk to our licensed professionals about your situation. Start your application — we're here to help without judgment.