Currently in a consumer proposal and I want to lease a new car

In Anonymous Q & A, Consumer Proposals, Niagara Falls, Ontario by Questions1 Comment

I am currently in a consumer proposal and I want to lease a new car (Mazda 3 GS) with the dealership, I was told that they do not do leasing with someone who is in CP, and they offer me to do financing. But someone told me that while I am in a consumer proposal, I cannot own a car that has value more than CAD$5000, can you let me know by doing the financing of this new car, will this cause any issue with my consumer proposal?

Comments

  1. Doug Stuive, CA | Trustee | CIRP

    When you are in a consumer proposal you are allowed to finance a vehicle for purchase. The value of the vehicle is not required to be less than any certain amount. There are some factors that should be considered before making your decision. It is important to pay close attention to the interest rate you are being charged and the overall cost of borrowing. It is not a good idea to enter in a financing contract that has you paying an amount that is excessively more than the value of the vehicle. Further it is also important that you carefully consider the required monthly payment to make sure the payment and other costs of car ownership easily fit within your budget. Your consumer proposal administrator can assist you with determining the car’s affordability. There would be issues should you be unable to maintain your consumer proposal payments as a result of taking on the extra expenses associated with purchasing a new vehicle.

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