Car Loans Canada Review: Finding the Best Car Loan Rates for 2024
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If you’re in the market for a new or used car, you’ll want to check out Car Loans Canada. It is one of the leading providers of vehicle loans in the country and offers some of the best terms around.
In this Car Loans Canada review, we’ll take a look at what makes Car Loans Canada such a great option and compare it to some of its competitors. We’ll also explain the application process and show you how to get started.
No minimum credit score requirement
Fortunly Rating
Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.
Strengths
- No minimum credit score required
- Flexible loan options
- No down payment needed
- No prepayment penalties
Weaknesses
- Not available in all Canadian provinces
- No cooling-off period
Car Loans Canada Overview
Car Loans Canada is a user-friendly online platform designed to help Canadian consumers find the best car loans. The platform finds the best deals at the top banks so that customers can get the most competitive rates. The company was founded in 2002 by two entrepreneurs who saw an opportunity to improve the car-buying experience for Canadians.
The company’s goal is to make it easy for consumers to compare various car loans and choose the one that best suits their needs. To do this, Car Loans Canada offers a user-friendly interface with a variety of features that make it easy for users to find the best loan options.
The platform is also constantly testing new features and improving its user experience.
As a result, Car Loans Canada has become one of the most popular car loan platforms in Canada, with 1.6 million Canadians served and 3,570 cars sold per month.
Car Loans Canada Features
One of the things that set Car Loans Canada apart from its competitors is its user-friendly interface. The platform is easy to navigate, allowing users to quickly find the information they need.
Another thing we like about Car Loans Canada is its transparency and the fact that it helps users find some of the best rates in the industry. The current rate for used vehicles is 3.99%, which is a great deal.
Car Loans Canada also provides flexible payment options, making it easy to find a plan that suits your needs and budget. You can opt for monthly, semi-monthly, biweekly, or weekly payments. And if you decide to make a lump-sum payment, there are no prepayment penalties.
Car Loan Calculator
One of the most valuable features of Car Loans Canada is its car loan calculator. This calculator has two options. It allows you to calculate your payments or calculate what you can afford.
To calculate your payment, you need to enter the price of the vehicle, interest rate, down payment, and loan term. You also need to provide information about your province, which can affect the tax rate.
Once you provide this information, you will see not only the total vehicle price but also the sales tax, total interest paid, and total loan amount, with all taxes included.
If you wish the Car Loans Canada website to calculate what you can afford, you need to choose the payment frequency, enter the desired payment and interest rate, and set the down payment you can afford. You also need to select one of the available loan terms and your province.
The website will then show you the vehicle price that fits your budget, along with the sales tax, the total interest paid, and the total loan amount.
The car loan calculator is a great way to compare your loan options side-by-side. It’s also helpful in understanding how much you can afford to borrow and what kind of down payment you’ll need to make.
Car Loans Canada Application Process and Requirements
The Car Loans Canada application process is straightforward and can be completed entirely online. The first step is to fill out an online form with some basic personal information.
You then have to select the type of vehicle you’re looking for; provide your birth date; explain your current credit situation and employment status; and provide your monthly income and select how long you’ve been earning it. The personal information you need to supply includes your home address, email address, and phone number.
Once you’ve submitted the form, a representative from the Car Loans Canada support team will reach out to you to discuss your options and help you choose the best car loan for your needs.
Also important to note is that the application process is free and doesn’t affect your credit score, so we definitely recommend you submit your application to see what options are available.
Car Loans Canada vs. Other Auto Loan Providers
Now that we've discussed Car Loans Canada’s features, we’ll proceed to compare it to some of its main competitors.
Car Loans Canada vs. Fairstone
If you’re in the market for a car loan, you may be wondering whether to go with a traditional lender like Fairstone or a newer company like Car Loans Canada. Both have pros and cons, so do your research before deciding.
With Car Loans Canada, you can get pre-approved for a loan before you even start shopping for a car. This can be helpful in negotiations with dealerships. Besides this, you can get a free credit score before beginning the application process.
What’s also important to note is that Car Loans Canada doesn't have any maximum loan amount set, which means you can finance any car you want.
Fairstone offers car and auto loans of up to $25,000. You can use this money to purchase any privately-sold car, truck, van, or SUV model not more than 10 years old. Fairstone offers flexible loan terms ranging from six to 60 months.
Like Car Loans Canada, Fairstone does not charge prepayment penalties, meaning you can pay off your loan early and not face an additional charge.
Car Loans Canada vs. Coast Capital
Coast Capital is another big player in the Canadian car loan industry. Like Car Loans Canada and Fairstone, Coast Capital offers some great features.
With Coast Capital, you can get pre-approved for a loan before you start shopping for a car, which helps you know how much you can afford to spend on a vehicle.
Coast Capital also offers new and used car loans, as well as leasing options. You can get financing for up to 100% of the value of your vehicle with Coast Capital and choose among various repayment terms.
With Coast Capital, you’ll get competitive rates, flexible terms, quick approvals, and straightforward payment options. It’s an excellent choice for those looking to finance a car.
Bottom Line
So, why choose Car Loans Canada?
Finding a car loan in Canada can be difficult, but Car Loans Canada makes it easy. With their online application, you can get approved for a loan in minutes and have the money you need to buy the car of your dreams.
It is one of the few companies that offers both new and used car loans, so no matter what type of vehicle you are looking for, Car Loans Canada can help you out. Car Loans Canada reviews different lenders to find the lowest interest rates in the industry. It can help you save money on your loan and get into your new car as quickly and affordably as possible.
Further Reading
FAQ
What is a good credit score in Canada for a car loan?
If you live in Canada and need a car loan, your credit score should preferably be at least 630. If you have a credit score of 650 or higher, you will have a good chance of getting approved for a loan with favourable terms. If your credit score is below 630, you may still be able to get a loan, but the interest rate will likely be higher.
Does applying for a car loan hurt your credit?
If you’re worried about your credit score, you’ll be happy to know that shopping around for a car loan will not hurt your credit. One of Car Loans Canada’s many advantages is that it provides a free credit score, so you can see where you stand before applying.
Like most lenders, Car Loans Canada will do a “soft pull” of your credit, which means they will check your score, but this won’t negatively affect your credit. However, if you decide to take out a loan, this will result in a “hard pull” of your credit, which can lower your score by a few points.
What is the average interest rate on a car loan in Canada?
The average interest rate for a car loan in Canada is 5.23%. However, this is just the average – the actual rate will depend on factors such as your credit score, the length of the loan, and the type of car you’re looking to buy.
If you’re interested in Car Loans Canada’s services and its car loan program, you can visit its website to learn more about the rates and terms. You can apply for a loan online in just minutes.
Does paying off a car loan build credit?
Yes, paying off a car loan on time can help improve your credit score since timely payments are reported to credit bureaus and help show you’re a responsible borrower. Additionally, paying off your loan in full will help improve your credit utilization ratio, another factor lenders look at when considering loan disbursement.
What is the minimum down payment for a car loan in Canada?
Our Car Loans Canada review shows that the company offers loans with a $0 minimum down payment, which allows you to finance the car's full purchase price with a loan. However, keep in mind that you may end up paying more in interest over the life of the loan if you do not make a down payment.