In House Financing is making a comeback in the Canadian market. When I first entered the car business in 1995 there were very few options for people who had credit issues such as bankruptcy, written off accounts, judgements or collections to be able to obtain financing for a reliable vehicle. I was lucky enough to work for a dealership that had an in house financing Winnipeg company and we were able to sell cars to these people before the sub prime lenders came on the scene.
Over the past several years there have been many companies come into the Canadian automotive financing market to fill the need for most of these customers. They are relatively large national and international financing companies. They have signed the majority of the dealerships across the country to refer business to them. In 2005 there were no fewer than 7 such companies doing business all across the country with many others doing business in certain markets in the country. At the time of writing this article in 2010 there are only 4 remaining and they have tightened up on their lending practices because there is less competition in the marketplace. Of note the 3 sub prime lenders that were doing business all across Canada that are no longer in the marketplace were international lenders with 2 or the 3 based in the United States. When the financial crisis occurred in America we lost them due to their parent companies consolidating their operations into the United States.