For many Canadians, owning a car isn’t just a convenience—it’s a necessity. But buying a vehicle outright with cash isn’t always realistic. That’s where auto financing comes in. Understanding how a car loan in Canada works can help you make smart financial decisions, save money, and drive home the car that fits your lifestyle and budget. In this guide, we’ll break down what a car loan is, how car financing works, and the different options available, from zero down payment options to loans for all credit types.