In MB, what should I know about minimum down payment for car loans?

In Manitoba, much like the rest of Canada, there is no specific provincial or federal legislation that mandates a minimum down payment for car loans. Instead, these requirements are entirely set by individual lenders-including banks, credit unions, and captive finance companies-based on their comprehensive risk assessment. This assessment considers a multitude of factors such as your credit score, debt-to-income ratio, the vehicle's age and value, and the proposed loan term. While 0% down payment options are available, particularly for applicants with excellent credit and for new vehicles, lenders generally view a down payment of 10-20% or more favorably as it significantly reduces their exposure. For the consumer, making a substantial down payment is highly advantageous: it directly lowers the principal loan amount, resulting in reduced monthly payments and considerable savings on total interest paid over the life of the loan. Furthermore, a higher down payment improves your Loan-to-Value (LTV) ratio, which can lead to better interest rates and stronger approval chances, especially in the current (2025) market environment where higher interest rates may prompt lenders to be more cautious. It also helps build equity faster and mitigates the risk of being "upside down" on your loan, where the outstanding balance exceeds the vehicle's market value.