Car Loans Canada Review 2021

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If you’re searching for auto financing with favourable terms, this Car Loans Canada review might be helpful to you.

There’s nothing more disappointing than finding your ideal vehicle and being turned down for financing. For this reason, Car Loans Canada offers an efficient way to obtain auto financing. You could receive approval for a loan from their vast network of lenders before walking into a dealership. This way, you’ll know which kind of car you can afford.

This Car Loans Canada review will show you a better strategy for finding auto financing.

Let’s dive right in.

Why Choose Car Loans Canada?

Getting good auto loan terms can save you money in the long run. However, finding a lender who’ll give you the best deal isn’t a simple task. That is why I’ve decided to compile this Car Loans Canada review.

You would typically have to visit multiple dealerships and lenders to weed out the good from the bad. This can be a time-consuming process. And it can be frustrating if you don’t know how to negotiate with car salespeople.

Car Loans Canada takes the hassle out of finding auto financing. You won’t have to spend hours visiting dealerships or consulting different lenders. Instead, they match you with lenders who can provide you with the best car loan for your needs and budget.

In as little as five minutes, you can apply online for approval. And within 48 hours, you can get loans with competitive terms to compare.

You’ll know what kind of vehicle to buy once you figure out how much financing you qualify for. This will eliminate the disappointment of finding a car only for a lender to term you down later.

The Pros and Cons of Car Loans Canada

Knowing the good and bad of any service provider before you deal with them is gold. Therefore, in this section of the Car Loans Canada review, I’ll detail some of the positives regarding this provider’s offering. I’ll also run through some of the negatives you should be aware of.

The Pros

Here’s what users love about Car Loans Canada.

No Minimum Credit Score Required

Whether you have good or bad credit, you can apply for a car loan. They can connect you with a bad credit lender if you have a low credit score.

Free To Use

Because they act as an intermediary between you and a lender, they will not charge you a fee to use their services.

High Approval Rate

They approve over 90% of loan applications.

Single Credit Check

They run one credit check to match you with lenders after you apply. This beats having multiple lenders make an inquiry for your credit score each time you use with them.

Flexible Loan Options

They can find you a loan with no down payment required. Also, you can get an open-ended loan without early payment penalties.

You can choose a term of up to 8 years and a payment schedule that works best for you. This can be monthly, semi-monthly, weekly, or bi-weekly.

Widespread Geographic Availability

They offer their service in nine provinces. This includes Alberta, Nova Scotia, Ontario, Prince Edward Island, Newfoundland and Labrador, Manitoba, New Brunswick, British Columbia, and Saskatchewan.

The Cons

Here’s what Car Loans Canada could improve upon.

High-Income Requirement

To qualify for their service, you must make at least $2,000 per month.

Extensive Personal Information Required

You’ll have to provide sensitive data during the application process, including your employer’s details and your residential address. Since they’re only an intermediary, you may not feel comfortable disclosing this information.

No Instant Recommendations

You won’t receive lender recommendations immediately after submitting your application. A loan specialist will first get in touch with you before finding out which loans you qualify for.

Range of Services

Car Loans Canada isn’t a lender. Their primary service is to connect clients with auto loan companies all around Canada. But they also work with other organizations to provide free credit reports and insurance quotes.

The services they offer are detailed in this portion of the Car Loans Canada review below.

Auto Loans

Get approved for a car loan with competitive terms, whether you’re looking to buy used or new.

When you apply for auto financing through Car Loans Canada, they match you with the best lenders based on the information you supply.

Their lending partners in the automotive industry include Bank of Montreal, TD Canada Trust, and Royal Bank of Canada.

Regardless, they can get you the lowest rate possible on a car loan if you have good or bad credit. Rates range from 3.96% to 31.99%, depending on the lender.

If you’re interested, you can get a loan with a term as long as 96 months.

Features

If you get auto financing through Car Loans Canada, you can benefit from:

  • A vehicle loan with a $0 down payment. They can help you secure funding that doesn’t require an upfront payment.
  • Flexible repayment frequencies. You can pay off your loan monthly, semi-monthly, weekly, or bi-weekly.
  • Open-ended loans. Without incurring penalties, you can make lump-sum payments or pay off your loan early.

Car Loan Calculator

Using their online car loan calculator, determine the size of loan payments you’ll make at your budgeted price for a vehicle.

In both cases, you’ll provide information about the interest rate, down payment, and trade-in value, if applicable.

When calculating your payments, you can determine how much you can borrow and what you’ll pay in interest.

You can use the calculator to compute monthly, weekly, and bi-weekly payments. You can then select the payment frequency that is most convenient for you.

As for determining the vehicle you can afford, you’ll be given a recommended price and the sales tax amount. Also, how much you should borrow and the total interest you’ll have to pay.

Of course, the results you receive are merely estimations. They are meant to guide you on your car-buying journey. Therefore, I advise you to back them up with a vehicle specialist’s advice.

Credit Score

Knowing where your credit score stands can give you an idea of how much you can borrow for a new or used vehicle.

Borrowell, a partner of Car Loans Canada, provides free credit score checks.

There will be no impact on your credit score if you request your credit report through Borrowell. This is because they don’t make a hard inquiry, which lowers your score by a few points.

Borrowell also allows you to keep track of your credit score. And you’ll get tips and advice on how to maintain or improve your credit.

Insurance Quotes

When buying a car, you must insure it. Besides your monthly payments, you’ll need to account for the cost of insurance in your budget.

Car Loans Canada collaborates with Sonnet Auto Insurance to provide affordable vehicle coverage.

You’ll have the option of selecting a pre-made package and tailoring it to your specific requirements.

You can get a quote and make a secure digital purchase with Sonnet online.

Cost of Using Car Loans Canada’s Services

There are no fees or costs associated with using their service.

As a result, you can gain free access to their network of lenders and receive suggestions from Car Loans Canada.

Keep in mind that the lender you choose for a car loan may charge you fees.

Is It Safe to Use Car Loan Canada’s Services?

There are often questions about safety and security when dealing with a financial services provider. For this reason, I’ve included this section in my Car Loans Canada review.

From a financial standpoint, it’s safe to use their services. This is because you aren’t paying them anything. Thus there is no risk of paying for something that doesn’t benefit you.

They adhere to the Personal Information Protection and Electronic Documents Act (PIPEDA). They also protect the information you input on their website while filling out the online application with bank-level encryption.

Car Loans Canada staff have a combined experience of 65 years, and they have served close to two million Canadians.

Car Loans Canada Customer Service and Support

You can contact them via email, phone, or live chat.

Alternatively, you can leave them a message on their website. According to Car Loans Canada, they try to respond within 24 hours of receiving messages.

You can find their telephone number and email address on their contact page.

On their website’s blog, you can read informative articles about car loans, auto news, and insurance.

How to Get Started with Car Loans Canada

Taking the first step when applying for a car loan can be intimidating. But this Car Loans Canada review includes the following guide to getting started, which will see you through the application process.

To work with Car Loans Canada, you’ll have to complete an online application. They state it takes less than five minutes to complete.

You’ll be directed to their partner’s websites to complete an application if you want to check your credit score or get an insurance quote.

Sonnet can provide you with an insurance quote in as little as five minutes. And it only takes a few minutes to apply with Borrowell to check your credit score.

Auto Loan Application

Visit their website and click the ‘get started’ button in the upper right corner to begin the application.

You’ll need to provide a great deal of information, including:

  • Personal details, like your date of birth, full name, email address, and phone number.
  • Your vehicular needs.
Car Loans Canada Review Vehicle Type - comparewise
  • Credit score range. You have the choice of guessing or clicking the “I’m not sure” button.
Car Loans Canada Review Credit Score - comparewise
  • Details relating to your occupation, such as your employer’s name, your current job status, and your monthly income.
Car Loans Canada Review Employment Status - comparewise
  • Your residential address.
Car Loans Canada Review Residential Address - comparewise

Once you submit the application, an agent will contact you to discuss eligibility. They will also give you recommendations based on your budget and vehicle requirements.

Required Documentation

You’ll have to provide the following documentation when applying for auto loan approval:

  • A void cheque or pre-authorization form from your bank. These are required to allow Car Loans Canada to deposit your funds and deduct your payments.
  • Proof of income. They’ll need to confirm your employment status and income with payslips or bank statements.
  • A valid driver’s license. You’ll need to provide proof of your identity.
  • Proof of residency. They’ll need a document like a utility bill to confirm that you have a valid Canadian home address.

Keep in mind that your home address must match the address printed on your driver’s license.

Eligibility Criteria

To qualify for Car Loans Canada’s auto loan approval service, you must:

  • Be 19 years and older
  • Have a monthly income of $2000 or more
  • Be employed for over 3 months
  • Live in Alberta, Nova Scotia, Ontario, Prince Edward Island, Manitoba, Newfoundland and Labrador, New Brunswick, British Columbia, or Saskatchewan
  • Have proof of income, a valid Canadian driver’s license and residential address

Alternatives to Car Loans Canada

Perhaps, after studying the points in this Car Loans Canada review, you’re still not sure about using their services. In that case, I would encourage you to shop around and compare different lenders. I would look into other companies that can match you with the right lender.

You may want to investigate the following organizations that deal with vehicle loan approval.

Carsfast

You can apply for free car loan approval or pre-qualification with Carsfast.

Over 300,000 Canadians have used them to get approved for a car loan. They accept applications from anyone, even if you have less-than-perfect credit.

Their vehicle loan supplier network includes six major Canadian banks. APRs range from 4.9% to 29.9%.

As for their income requirements, they are more lenient than Car Loans Canada’s criteria. To be eligible for their service, you simply need to make $1,800 every month. They also cover a far larger geographical area than Car Loans Canada does.

The most significant aspect of their service is that they deliver your car directly to your front door.

Carloans411

Carloans411 is an excellent option if you’re looking for a good deal with a local auto dealership.

While you must have worked at the same company for over three months, you only need to earn $1,600 per month. Compared to Car Loans Canada, this is a significantly lower income requirement.

They provide a variety of financing options through their dealership partners, including pre-computed and unsecured loans. An APR of any amount between 1.90% and 19.99% is available.

Conclusion to Car Loans Canada Review

Almost every vehicle buyer can benefit from Car Loans Canada’s free and straightforward service. Thanks to their extensive network of lenders, you can get the best auto loan for your vehicle requirements and situation.

Perhaps you don’t want to deal with the hassle of looking for an auto loan provider, or you don’t know where to get started with your search. In that case, I recommend considering Car Loans Canada.

Discover a better way to find an auto loan through our Car Loans Canada review. Learn about the pros, cons, & cost of their service & more.

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FAQs about Car Loans Canada

What is Car Loans Canada?

Car Loans Canada provides auto financing and support for people wanting to buy a vehicle. Car Loans Canada looks at your financial background to get a rate that is suitable for you.

Why Choose Car Loans Canada?

Choose Car Loans Canada if you want to save your money in the long run as they can provide you with the best car loan depending on your needs and budget. You can narrow your choices down and go to the dealership with some vehicles that you can test drive and eventually drive home in.

What are the benefits of Car Loans Canada?

The benefits of Car Loans Canada include, no minimum credit score needed, it’s free, high approval rate, flexible payment options and soft credit check. This means that whether you have a bad credit history, you are still eligible for a loan from Car Loans Canada as their approval rate is 90%. They have a lot of flexible loan options and their services are free to use.

How can I apply for Car Loans Canada?

You can apply for Car Loans Canada on their website, it’s very simple to do. What you’ll need are:

  • Personal details
  • Car preference and needs
  • Credit score (optional)
  • Income and employment
  • Important documentation such as license and proof of income
What are the costs of using Car Loans Canada?

The costs of using Car Loans Canada remains free, you don’t have to pay for fees when you use their service. Keep in mind that the lender you choose for a car loan may charge you fees.

October 1, 2021
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