About lender
Car Loans Canada is an online auto financing platform aimed at helping customers find a car loan that will work best for them.
Car Loans Canada is a car loan comparison platform connecting borrowers with optimal financing solutions. While the platform doesn’t provide auto financing directly, it matches borrowers with the car loan products that are right for them—the company partners with a vast network of top-rated dealerships and lenders across Canada.
Car Loans Canada helps customers avoid the hassle of visiting various dealers and lenders to find the best financing deal. Instead, based on your objectives and financial situation, the platform will match you with a lender that can offer you the best loan conditions.
Founded in 2002, Car Loans Canada has served 1.6 M Canadians already. Currently, the platform is available in the following Canadian provinces:
Alberta
British Columbia
Manitoba
New Brunswick
Newfoundland & Labrador
Nova Scotia
Ontario
Prince Edward Island
Saskatchewan
Pros and cons
Why are so many Canadians choosing in favor of Car Loans Canada? Here are the main pros of getting a car loan through this platform:
Access to various financing options — the platform connects you with different dealerships and lenders to find the best solution for you.
There are tons of time saved — no need to move from one dealership to another searching for the best offer.
Pre-approval before shopping — avoid rejection when finally finding the car you want.
Fast and convenient application process — the lender promises a two-minute application and a quick and convenient application process approval.
No credit score requirements — get access to financing, even with a bad credit history.
Options with no down payment available — become a car owner with zero initial investment.
Flexible repayment schedule — monthly, semi-monthly, bi-weekly, or weekly payments.
Favorable early payoff conditions — make lump sum prepayments or full repayment at no extra cost.
Built-in car loan calculator — get an idea of what your payments will look like.
Despite the benefits listed above, there are certain cons to be aware of:
At first, a strict monthly income requirement — you need to earn at least $2,000 monthly to qualify for a loan.
Higher rates in case of bad credit — as you are a riskier client for a lender, they will hardly offer you an attractive rate.
If you decide to cancel your loan, you’ll have to pay a penalty fee.
Additional costs and fees — different loan providers may charge extra fees on their services (administrative fees, dealership fees, GST, HST, and other taxes).
Not available across the country — you can get financing only in the nine provinces listed above.
Not a completely online application process — you still have to interact with an agent to complete your application.
A lot of personal information is required — not everyone is comfortable sharing lots of data with third-party companies.
The most significant advantages of Car Loans Canada are exposure to a wide range of financing deals and time saved on comparing the alternatives. However, while getting a loan through this platform is quick and easy, you will still need to communicate with their representative to get a quote. The significant disadvantages are a monthly income requirement and additional costs that third-party lenders may charge you.
To ensure that the whole process goes smoothly, do your research beforehand. Use the car loan calculator on the Car Loans Canada website to get an idea of your payments and the total cost of your loan. Consider the additional fees charged by a lender.
Loan conditions
The Car Loans Canada platform is free to use. However, to get a car financed, you need to apply for a loan online and wait for a credit expert to contact you. After assessing your eligibility, an expert will offer you an optimal solution based on your budget and vehicular needs.
The great thing here is getting pre-qualified for a loan before car shopping. This way, you will know in advance what you can count on and avoid the frustration of a refusal during car shopping.
The Canadian lenders offer car loan terms ranging from 12 to 96 months. While monthly payments are smaller with longer terms, the interest rates are also higher.
The rates offered by lenders that Car Loans Canada partners with are in a range between 3.99% to 31.99%. Remember that interest rates change frequently, so check the up-to-date values before applying.
The actual interest rate will significantly depend on your credit score. A bad credit record will result in a higher interest rate, as a lender will consider you a risky client. To give customers an idea of where they stand with their credit, Car Loans Canada provides the following reference points:
With an excellent credit score, you can count on the interest rates of 3.98%-7.98%
With a rebuilding credit history, you can expect an interest rate of 20.99%
If you are looking for a $0 downcar loan, Car Loans Canada can help you.
As for income requirements, Car Loans Canada states that borrowers should have a monthly income of $2,000 and higher. Not only employment income but also self-employment income and government benefits are eligible. Be sure to have proof of income at hand.
As for the payment frequencies, they are pretty flexible. You can choose to pay weekly, bi-weekly, or monthly. Besides, you can get an open loan and repay it penalty-free anytime you want.
Methods of loan funding
To get the desired car financing, you will need a bank account. Upon your loan application approval, a lender should deposit funds directly into your bank account in just one business day. If you apply outside of their business hours, allow for additional time for the funds to appear in your bank account.
