Top 10 car loan companies to find in Canada

Car loan companies to find in CanadaDid you know that the average cost of a new vehicle in Canada now exceeds $40,000?

That is a lot of money!

Whether you live in the city, suburbs, or the country, there are plenty of reasons to want a dependable vehicle. However, if you’re looking for something safe, fuel-efficient, and that will last you more than a few years, chances are it’ll have a price tag that matches, which is where a car loan can be extremely useful.

How do you find the best car loans for your financial situation? It’s not an easy process, but by comparing lenders and keeping an open mind, you can find the best auto loan for your next car. Learn the best car loan options in Canada, and what loan features you should be on the lookout for.

1. Car Loans Canada

Car Loans Canada is the oldest online auto service in Canada. Canadians looking to apply for a vehicle loan online have relied on Car Loans Canada for over a decade, taking advantage of a convenient pre-approval process for financing and a large network of dealers and lenders. With operations in nine provinces, they have served more than 1.6 million Canadians to date and approve over 11,900 applications every month.

Their online application form takes less than 3 minutes and approval for auto-financing is pretty quick.

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Using Car Loans Canada to find the best car loan rates makes sense since they send out your application to 300+ lenders at the same time. After filling out a quick form; Car Loans Canada’s network will present users with a list of local dealers which offer various pre-approved financing options on a specific vehicle. With fixed interest rates up to 29.95% and terms from 36 to 72 months, you can probably choose from several options, even if it’s your first vehicle purchase or if you’ve had past credit problems.

Car Loans Canada can match applicants with consumer proposals, bankruptcies, or other credit history issues to a suitable loan and car same-day, primarily because its list of partners and lenders is so expansive. It’s a free resource for those who don’t want to get hit with a hard credit check, and who need to know which local dealers offer the best terms on the vehicle they have their eye on.

2. Carloans411

CarLoans411 specializes in connecting borrowers with poor or no credit history to auto financing and its near-guaranteed approval makes it particularly appealing to new immigrants and those with a consumer proposal or bankruptcy in their credit history. CarLoans411 has dealership partners throughout Canada, which offer secured and unsecured loans on new and used cars, vans, trucks, and SUVs. Loan terms last from 12–84 months; interest rates vary depending on the applicant’s financial status, and CarLoans411 does not disclose the range of interest rates that its partners offer.

The initial application process takes a few minutes and entails submitting some personal info, including DOB, address, phone number, monthly housing cost, and monthly income. After submitting these responses you’ll be contacted by a CarLoans411 rep, who will discuss various vehicle and loan options in your area. The application process is free.

Though there are no credit score or down payment requirements, applicants are required to make at least $1600 per month to qualify. The application process does involve a credit check, but most applicants qualify for some sort of auto financing regardless of their credit score.

3. Loan Connect

Canadians that need cash loans for cars or SUVs can utilize the Loan Connect platform to choose from a comprehensive list of lenders that they qualify for. Prospective borrowers fill out a quick application and then Loan Connect matches them to the loans for which they’ve been pre-approved. Applicants should note that “Vehicle Loan” isn’t a listed loan purpose—Loan Connect lumps these loans alongside boats, motorcycles, and other wheeled toys in the “Lifestyle Loans” application.

Loan Connects network of lenders currently provides loan terms of anywhere from 12 to 60 months, with APRs ranging from 10% up to 46.96% APR based on personal credit. However, the list of lenders it works with continues to grow, so terms will vary. Many Loan Connect borrowers report receiving their cash in as little as 24 hours. Loan Connect is accredited by the Better Business Bureau where it holds an A+ rating.

4. Loans Canada

Loans Canada offers access to more than just auto financing loans. Using Loans Canada’s loan comparison platform, you can also borrow money from its partner lenders for car repairs, auto financing, and more.

Loans Canada is linked to the largest dealer network in Canada and you can get a loan for various types of vehicles. For an auto financing loan or auto repair loan, Loans Canada offers access to multiple lenders and quotes specific to one’s choice of vehicle (sedan, truck, SUV, luxury, others), their monthly budget, credit score, and income. Getting matched with a list of vehicle loans that suit your situation takes all of 30 seconds, and Loans Canada is capable of funding up to $300,000 in as little as 24 hours.

Annual percentage rates can land between 0% and 46.96%, a wide range, and yours is largely dependent upon the hard credit check completed by your chosen lender. You’re able to stretch a vehicle loan over 60 months or as little as 3 months. Ultimately, Loans Canada makes it easy to pay in regular installments and is also suitable for borrowers with weaker credit or those who want a lower monthly payment on their vehicle.

5. Canada Drives

Canada Drives has been connecting Canadians with competitive car loan rates since 2010. With several affiliated dealerships across the country and 1 million completed applications, you can have your car within a few days.

A streamlined online walkthrough helps users pinpoint the exact type of loan they need, incorporating factors like vehicle type, amount of money down, budget, trade-in, and credit score. Other useful features of the online interface include a visual inventory page and a live chat function.

To start the process, you will need to complete an online application form which takes 10 minutes or less. After providing your basic details and submitting your application, Canada Drives finds a suitable deal and you know what’s available before setting out.

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APRs range from 0-30% depending on factors like credit score and whether or not the vehicle is used or new. Applicants can get financing on vehicles worth $5,000 to $75,000 and with terms between 12 and 96 months. The company was established in 2010 and enjoys a TrustPilot rating of 8.8 with over 1,000 reviews.

6. Canada Auto Finance

Designed as a loan aggregator for applicants anywhere on the credit spectrum, Canada Auto Finance provides users with a list of pre-approved vehicle financing options in less than 30 seconds. All you need to do is fill out the company’s quick form and wait for a finance manager to connect you with an authorized dealer in your area. Applicants are also able to finance a private sale through Canada Auto Finance, refinance current vehicles, or otherwise arrange to finance from non-network dealers.

You’ll only be able to borrow between $5,000 to $45,000 but the company’s positioning as a low-credit auto financier makes this logical. Also fitting in with this theme is the potential to be approved without a co-signer, for $0 down, with zero application fees, and without providing a SIN. This may also mean your APR is on the higher side (4.90% to 29.95% on average). Those with a credit score of 625 or higher should qualify, but you’ll need to have at least $1,500 in monthly income for approval.

7. Auto Arriba Car Loans: Best for private sales

An Auto Arriba Car Loans is a great option when you’re trying to finance a private vehicle sale from individuals and sites like Kijiji. You can finance vehicles up to 10 model years old or a maximum of 180,000 kilometers. Once you’re approved for financing, the experts at Auto Arriba send an inspector to look at the vehicle you want to buy to make sure it’s roadworthy. From there, you just need to sign your financing agreement and bill of sale before you pick up the keys from the seller.

$500 – $100,000 Loan amount

8.99% – 29.5%APR

Loan tenure: 6 – 84 months

Pros

Apply from the comfort of your own home in less than 15 minutes

Borrow up to $100,000

Good option if you have bad credit since loan decisions depend more on factors like your income and employment status

Cons

Down payment may be required depending on the age and condition of the vehicle you want to buy

Does not operate in Quebec

8. Cars fast Car Loans: Best for buying a car completely online

Browse thousands of vehicles from dealers across Canada with CarsFast and get matched with financing that meets your needs, and purchase a new or used vehicle and get it delivered to your door.

Also Read: Things To Know About Best Refinance Rates

$500 – $75,000 Loan amount

4.9% – 29.9%APR

Loan tenure: 12 – 96 months

Pros

Easy application

Multiple lenders

Quick financing

No collateral required

Long terms

Bad credit doesn’t matter

Available across Canada

Cons

No posted interest rates

Limited to commercial-scale vehicles

9. Splash Auto Finance

Splash Auto Finance works with non-traditional borrowers, such as people with bad credit, no credit, and bankruptcy.

Splash Auto Finance accepts applicants who have been employed full-time for at least 3 months with a minimum monthly income of $2,200 before taxes.

Features

Loan Amount: $10,000 – $50,000

Interest rate: 9.90% – 29.90%

Loan term: 24 – 84 months

Minimum Credit score: 300

10. Coast Capital Car Loan

Coast Capital is one of Canada’s largest and most reputable credit unions. It operates primarily in British Columbia (BC) and offers car loans to customers across several Canadian provinces. All you need to do is fill out some basic personal information along with details about your current financial situation to see if you qualify.

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You’ll pay different interest rates on your Coast Capital auto loan depending on your credit score and how much you’re looking to borrow. Loan terms can range between 18 months and 7 years. You can use your loan to pay for a new or used vehicle from dealerships or private sellers. You may even be able to apply for financing to purchase a new fleet of business vehicles. Plus, you’ll only have to wait 48 – 72 hours to find out if your car loan application was approved.

Features

Loan amount: $10,000 – No Max.

Minimum credit score: 650

Able to service debt payment of $300/month

Competitive rates and flexible terms.

Finance new and used vehicles from one of Canada’s largest credit unions. No credit union membership is required. Available across Canada except for SK, QC, NT, NU, YT.