What does OAC mean when car shopping?

You’ve been doing your research and taking note of all the things you need to purchase a new vehicle. The lease and finance options seem attractive enough for you, but there are those three letters that keep showing up, “O.A.C.”

What Is OAC?

OAC stands for “On Approved Credit.” This acronym is usually found right by the lease and finance rates, or in a dealership’s fine print. What this means is that the lease and finance rates advertised are subject to approval based on your credit rating. To put it simply, the healthier your credit history is, the chances of you receiving better interest rates are higher. As long as you meet the dealership’s credit qualifications, they will be able to lease or finance your purchase at a certain rate.


How to Qualify for OAC?

The best way to increase your likelihood of receiving the lease or finance rates you want is to improve your credit score. Here are some ways you can do so:[1] 

  1. Timely Bill Payments
    • The simplest way you can keep a healthy credit score is by always paying your bills on time. It goes a long way when you want to purchase bigger investments down the road.
  2. Keeping Your Purchases Under Your Credit Limit
    • Do not go over your credit limit as borrowing more can potentially lower your credit score.
  3. Have Different Types of Credit
    • Keeping a variety of credit options such as a credit card or a line of credit can improve your credit score. Be wary of this as you also don’t want to get into debt.



Nothing is worse than going to the dealership and picking out your car, only to find out that you did not qualify for OAC. If you want to cut out the guesswork on finding out if you meet the qualifications, there are many options out there that provide solutions for you based on your financial situation.

NextRoad from OpenRoad is a new all-in-one service that matches individuals with quality vehicles based on payments they can afford. Depending on your requirements and financial situation, the NextRoad team of credit specialists will provide an automotive finance plan customized for your specific needs. You can apply from the comfort of your own home and take the document with you to a dealership once you’re ready to make your purchase!

To learn more about OAC or NextRoad, contact one of our OpenRoad dealerships today.

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[1] https://www.canada.ca/en/financial-consumer-agency/services/credit-reports-score/improve-credit-score.html

Posted by Lia Ortiz

Lia Ortiz has been in the automotive industry for 5 years. Starting out as a public relations and events coordinator for Honda Philippines, she then moved to Vancouver and has worked as a Digital Marketing Strategist for OpenRoad Auto Group. She specializes in SEO, SEM, and Social Media Advertising (with a little bit of writing on the side).