Car Deal Canada Deep Dive Deep Dive

Getting approved for an auto loan can be a major challenge for Canadians with poor credit. Many dealerships and lenders will automatically reject applicants with low credit scores, limited credit history, or past issues like missed payments or defaults. This leaves people in a tough spot when they need a vehicle but can’t get financing through traditional channels.

This is where online companies like come in. claims to specialize in helping Canadians with bad credit get auto financing. They advertise easy online applications, flexible terms, and a network of lenders that work with bad credit. At first glance, it seems like the perfect solution.

But is truly as great as it claims to be? Or is this company exaggerating its abilities in order to sign up desperate car buyers? In this article, we’ll take an in-depth look at’s offerings, credibility, fees, and more. Our goal is to determine if this company can be trusted to provide fair loans to consumers with poor credit.

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Background on ConsumerAuto

ConsumerAuto entered the Canadian auto financing scene in 2018, launching their website as an online marketplace for connecting subprime borrowers with lenders. Based in Toronto, Ontario, ConsumerAuto aims to help Canadians with poor credit secure auto financing through their network of lenders and dealerships across the country.

Through their website, ConsumerAuto allows customers to apply for auto loans completely online by filling out a short application form. They claim to work with “Canada’s most trusted lenders” to match applicants with a loan offer, even those with bad credit or past bankruptcies. ConsumerAuto states they provide access to car loans for any credit situation, with the ability to get approved in as fast as 60 seconds.

Once matched with a lender, customers can then shop ConsumerAuto’s inventory of used vehicles available at dealerships in their area. ConsumerAuto offers loans for sedans, trucks, SUVs, minivans, and more. They focus primarily on helping subprime borrowers who may not qualify for financing through traditional banks and dealerships.


ConsumerAuto’s Loan Application Process

Applying for a car loan through ConsumerAuto’s website involves a few simple steps:


Step 1: Visit and click “Apply Now” to begin the online application. You’ll need to provide some basic personal and employment details.

Step 2: The application asks for information like your name, date of birth, address, income source and amount, and your desired vehicle make and model. Be prepared to enter your SIN and upload documents like a recent pay stub.

Step 3: After submitting the application, ConsumerAuto claims their system will match you with a lender in their network. The lenders will review your credit and details to make a loan decision.

Step 4: If approved, you’ll receive loan offers from the matched lenders. ConsumerAuto says to expect a lending decision within 1 business day.


The online application aims to be quick and easy. You’ll need to provide personal details and documentation to verify your identity and income for any auto loan. ConsumerAuto says they’ll match you with the best lender and interest rate available based on your credit profile.


Loan Terms and Vehicle Options

ConsumerAuto offers loans ranging from $5,000 to $35,000 for terms of 24 to 84 months. The interest rates vary from 6.99% for borrowers with good credit to 29.99% for those with poor credit.

For the down payment, ConsumerAuto requires either $0 down or a minimum of $1,000 down depending on the borrower’s credit profile. They allow trade-ins which can lower the amount financed. The loan proceeds get sent directly to the selling dealer and the trade-in value gets deducted from the total loan amount.

Through ConsumerAuto’s dealer network, you can finance new or used vehicles. They work with franchise dealers to offer current model year vehicles as well as independent dealers for a wider selection of used vehicles. The available inventory includes makes such as Ford, Honda, Toyota, Chrysler, Nissan, Hyundai, Kia, and more.

ConsumerAuto has a nationwide network of over 400 dealers across Canada. You can browse vehicle listings on their website by make, model, price and location. Once approved, you pick a car from a local dealer in their network. The dealer then coordinates the purchase and loan documentation.


Interest Rates and Fees

One of the most important factors when considering any loan is the total cost, including interest rates and fees. ConsumerAuto advertises interest rates starting at 4.99%, but the actual rate offered will depend on your credit score and other qualifications.

The average interest rate for a used car loan in Canada is around 6-8% for borrowers with good credit. For those with poor credit, rates from most mainstream lenders are typically 14-25%. ConsumerAuto claims to offer rates as low as 4.99% even for borrowers with bad credit, which seems surprisingly low compared to industry averages.

In addition to interest rates, ConsumerAuto also charges an origination fee and documentation fee. The origination fee is a one-time charge to process and approve your loan, while the documentation fee covers preparation of your loan documents. These fees typically add a few hundred dollars to the total cost of your financing.

It’s important to watch out for any hidden fees as well. Some lenders will advertise low rates but make up for it with add-on fees for things like GPS tracking, extended warranties, or required insurance policies. Based on online reviews, ConsumerAuto doesn’t seem to engage in these types of practices, but it’s always wise to verify there are no surprise fees.

To get an accurate idea of the total cost, you can use ConsumerAuto’s online payment calculator to estimate monthly payments. For example, on a $20,000 loan over 5 years at 7% interest, your payment would be around $385 per month, with a total repayment amount of approximately $23,100 including interest and fees.


ConsumerAuto’s Credibility Factors

When determining if an online lender like ConsumerAuto is legitimate, it’s important to look at their credibility factors such as licensing, certifications, reviews, and transparency. Here’s an overview of what we found when examining ConsumerAuto:


Licensing and Certifications

ConsumerAuto doesn’t disclose any specific licensing, though they claim to be registered with provincial consumer protection bodies. Being more transparent about licensing and certifications would improve their credibility. They are not a member of the Better Business Bureau (BBB).



One concern is that ConsumerAuto is not very transparent about where they obtain financing from. They claim to match applicants with lenders in their network, but don’t specify who the lenders are. More transparency around their lending partners and practices would be reassuring.


Pros of Using ConsumerAuto

There are several potential benefits to financing a car through ConsumerAuto compared to a traditional dealership or bank:


Fast and Easy Approval Process

ConsumerAuto claims to offer a quick and simple online application that gives you an approval decision in minutes. Their website states that they work with lenders that specialize in bad credit auto loans, so the approval process is tailored for those with poor credit histories.


Options for Bad Credit Borrowers

Since ConsumerAuto caters to those with bad credit, they provide financing options many traditional lenders would deny. This gives borrowers with low credit scores or past issues a chance to qualify for a car loan.


Delivery of Vehicle to Your Door

ConsumerAuto says they will handle purchasing the vehicle you select and have it delivered to your home, saving you a trip to the dealership. This convenience factor is a major draw for some consumers.


Wide Dealer Network

The company claims to have access to a large network of dealer partners across Canada. This gives borrowers a wide selection of makes, models, years, mileage, and prices to choose from when picking out a vehicle.


Potential Drawbacks and Red Flags

While ConsumerAuto may seem like an easy option for financing a car with bad credit, there are some potential drawbacks and red flags to be aware of.


Higher Interest Rates Than Average

As a subprime lender, ConsumerAuto charges higher interest rates compared to prime lenders and banks. Rates can be over 20% for borrowers with poor credit. Be sure to compare rates and do the math on total loan costs.


Lack of Physical Locations

ConsumerAuto operates purely online, with no physical branch locations. This can make it difficult to speak to someone in person about your application or loan. All communication is done by phone, email or through their website.


Repeat Hard Credit Checks

ConsumerAuto’s partners may run a hard credit check whenever you apply, which can negatively impact your score if done multiple times. They may also submit your application to their network of lenders, each of whom may run another hard check. Too many in a short timeframe can hurt your credit.


Bad Credit Auto Lender Alternatives

If you have poor credit but don’t feel fully comfortable using ConsumerAuto, there are other legitimate options for getting an auto loan in Canada:


Other Subprime Online Lenders

Companies like and also specialize in lending to borrowers with low credit scores. They have an online application process and work with dealerships across the country. Make sure to compare interest rates and fees to ConsumerAuto.


Tips for Improving Your Credit

Building your credit score takes time, but there are steps you can take to raise it faster. Pay all your bills on time, pay down balances, limit credit checks, and correct any errors on your credit report. Within 6-12 months you may be able to qualify for a better rate.


Using a Co-Signer

Asking a family member or friend with good credit to co-sign on your auto loan can help you get approved and secure a lower interest rate. The co-signer takes on equal responsibility for repaying the loan.


How ConsumerAuto Compares to a Dealership

One of the main draws of using an online lender like ConsumerAuto rather than going to a traditional dealership is that they may approve borrowers that would otherwise be declined at a franchise dealer. This is because ConsumerAuto specializes in subprime lending, meaning they work with applicants who have poor credit or other risk factors.

However, the convenience of approval comes at a price. ConsumerAuto is likely to charge significantly higher interest rates than you could get with prime credit at a brand name dealer. Their average rates may be over 10% or up to 20% for some borrowers, while dealers advertise rates as low as 0% for well-qualified buyers.

The other advantage of using ConsumerAuto is the convenience of having a vehicle delivered right to your door once approved and purchased through their platform. You can avoid spending hours at a dealership negotiating and completing paperwork. However, this service comes with extra fees.

So in summary, ConsumerAuto caters to a different type of buyer than a traditional dealer. They provide a needed service for credit-challenged consumers, but at a higher cost. It’s a trade-off between convenience/flexible approvals and the best interest rates.


Steps to Take Before Applying with ConsumerAuto

If you decide to move forward with ConsumerAuto for auto financing, there are a few precautions you should take first:


Review loan terms closely – Make sure you understand the full loan length, interest rate, monthly payments, and any penalties for early repayment. Don’t gloss over the fine print.

Check additional fees not in APR – The advertised interest rate likely won’t reflect fees like application fees or documentation fees. Ask for a full breakdown of costs.

Read reviews carefully – Look beyond the reviews on ConsumerAuto’s website. Search independent sites to get a complete picture of customers’ experiences.

Confirm vehicle condition upon delivery – Thoroughly inspect the vehicle upon delivery and test drive it. Check for issues not disclosed in the listing.


Taking these steps will provide important information as you determine if a loan offer aligns with your needs and budget.


Final Verdict: Is ConsumerAuto Legit?

After closely examining ConsumerAuto’s services, fees, credibility, and comparing them to other subprime lenders, we can confidently say that ConsumerAuto is a legitimate company for bad credit auto loans in Canada.

Here are some of the key pros and cons that support this verdict:



  • Wide dealer network across Canada
  • Clear application process with online pre-approval
  • No hidden fees beyond admin and documentation costs
  • Mostly positive customer reviews
  • BBB accredited with A+ rating




  • Higher interest rates than prime lenders
  • Limited vehicle selection compared to dealerships
  • Must accept GPS tracking device on financed vehicle


Based on the in-depth analysis of ConsumerAuto’s business practices, credibility, and reputation, they do appear to be a legitimate bad credit auto lender in Canada. While borrowers with very poor credit should expect to pay higher rates, ConsumerAuto’s fees and lending terms are in line with other subprime financiers.

There are no glaring red flags or scam warnings from ConsumerAuto’s history and operations. Their website provides transparent information on rates, fees, vehicle options, and approval requirements. Most concerning is some negative reviews about high-pressure sales tactics from dealers in their network.

Overall, those seeking a bad credit auto loan in Canada can likely trust ConsumerAuto to deliver financing safely and legally. However, make sure to compare all loan terms and shop around before committing.


Alternatives for Bad Credit Borrowers in Canada

If you have bad credit but don’t feel comfortable using ConsumerAuto, you still have options for getting an auto loan in Canada. Here are some tips:


Improve Your Credit Score

Before applying for any loan, it’s smart to check your credit report and try to improve your score. Pay down debts, avoid new credit applications, and fix any errors on your report. This can significantly boost your score within a few months.


Consider Other Subprime Lenders

There are other legitimate lenders that specialize in bad credit auto loans such as, Auto Credit Express, and Carfinco. Shop around for the best rates and terms.


Buy From a Private Seller

You may be able to find a good used car being sold by its owner rather than a dealership. This avoids the credit check and financing requirements. Save up enough cash to pay the seller directly.

Don’t let bad credit stop you from getting a reliable vehicle. With some time and effort, you can get approved for a car loan or find alternative options like a private purchase.



Based on the factors outlined in this article, appears to be a legitimate online auto financing company that can match bad credit borrowers with subprime lenders across Canada. While isn’t without some risks, they do seem to offer a streamlined way for those with poor credit to access car loans.

If you have bad credit and are considering using, make sure to read all terms and disclosures carefully before signing anything. Get quotes from other lenders as well to compare interest rates. Only provide your personal information on secure application forms.

For other subprime financing options, you can check companies like, Canada Drives, and Your bank or credit union may also work with you despite a low credit score. Reviewing your credit report for errors can help improve your chances too.

With some caution, appears to be a decent option for high-risk borrowers to obtain auto financing. But be sure to protect your personal and financial information and compare all loan offers thoroughly first.

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Questions About is an online platform that connects Canadians looking for auto financing with lenders across the country. It aims to simplify the car buying process, especially for those with bad credit.


The website seems legitimate based on several credibility signals:


– It has a professional-looking website with clear information on services, fees, etc.

– Multiple independent review sites like Scamadviser have classified it as legitimate and trustworthy.

– It has active social media pages on Facebook and Instagram with decent engagement.

– There are no major red flags or scam warnings from credible consumer protection sites.


However, it’s not BBB-accredited and some Reddit users have expressed doubts. As with any lender, applicants should research thoroughly and read all fine print before signing agreements. But overall, appears to be a genuine service. focuses specifically on auto loans for Canadians. The main loan types they offer are:


– **Bad credit car loans:** For applicants with poor or no credit history. Often have higher interest rates.

– **Guaranteed auto financing:** Approval is guaranteed if you meet eligibility criteria like income threshold.

– **Dealer financing:** Get financing directly through their network of dealer partners across Canada.

– **Private car loans:** Loans from non-bank lenders in their network, often more flexible terms.

– **Lease buyouts:** Refinance the remaining payments on your existing auto lease agreement.


They claim to work with lenders who provide loans for new & used cars, refinancing, lease buyouts and more. Loan amounts can range from $5,000 up to $100,000 based on the vehicle value.

To qualify for a car loan arranged by, the main requirements are:


– Canadian citizenship

– At least 19 years of age

– Valid Canadian driver’s license

– Gross monthly income > $1,500

– Own or have access to a functioning smartphone


For bad credit applicants, you can have credit scores as low as 320 and may still get approved. Income, job stability and down payment amount also impact eligibility.


They don’t mention bankruptcy, but one would assume very recent bankruptcies may disqualify until discharged based on typical auto lender policies.

Consumer Auto has an easy online application process:


  1. **Enter basic personal and employment details:** It takes less than 5 minutes to fill out the secure application form.


  1. **Get matched with lenders:** Their system filters your information and matches you with up to 4 lenders from their network.


  1. **Compare loan offers:** Within 1 business day you’ll receive loan offers from matched lenders to compare rates/terms and select your preferred option.


  1. **Verify information & sign agreement:** The lender will verify details, run a credit check and complete documentation before releasing funds.


So it’s a brokerage model where they connect borrowers to relevant lenders offering the best rates. You avoid loan rejection risk.

As works with third-party lenders, the interest rates and fees for car loans can vary significantly based on your credit rating and other qualifications. Some guidelines on rates:


– **Excellent credit (700+):** As low as 3.99%

– **Good credit (650-699):** Around 7.99%

– **Average credit (600-649):** Approx. 11.99%

– **Poor credit (below 600):** Up to 29.99%


In addition to interest charges, common fees include:


– Origination fees: Up to $500

– Doc/admin fees: $300-400

– Discharge fee when paying loan in full: $300-$400


Rates and terms are finalized only once a matched lender approves your loan application after review. Ensure you understand the complete cost before signing your loan agreement.

One of the major benefits touted by ConsumerAuto is fast approvals and loan funding:


– **Pre-approval:** Instant decision on whether you pre-qualify for financing options.

– **Match with lenders:** Within 1 business day.

– **Loan approval:** Once matched, lenders approve 90% of applications in 1-3 days.

– **Receive funds:** Approved loan amount deposited in your bank account in 24-48 hours.


So you can expect to have the financing ready in about 3-5 business days after starting the application. Then you can use the funds towards buying your chosen vehicle.

ConsumerAuto works with lenders that can finance loans for a wide range of new and used vehicles such as:


– All car makes & models – domestic or imported

– Minivans and SUVs

– Pickup trucks like F-150, Silverado, RAM, etc.

– Certain commercial vehicles also qualify in some cases.


The online application form allows specifying details for up to five vehicles you may be considering for purchase.


As long as the vehicle meets eligibility criteria set by the matched lender, it can likely be financed via’s lending partners once you get approval.

Yes, offers pre-approval loans where you get approved for financing without having selected a particular vehicle to buy yet.


The pre-approval credit is valid for 30 days typically. It guarantees loan funding up to a stated amount for any qualifying vehicle model that the borrower ends up selecting from a dealership later.


To get approved, you still need to provide personal/employment details showing repayment ability. But no VIN number or vehicle specifics required yet.


Pre-approvals help buyers in the following ways:


– Gain negotiating leverage with having financing already tied up.

– Avoid rushing the vehicle selection & inspection process.

– Buy from any dealer without being limited to in-house financing.


So it offers flexibility along with rate/term guarantees.

The main steps after your auto loan is approved via are:


  1. **Select the right vehicle:** Work with dealers to zero in on the car you want or get pre-approval first before selection.


  1. **Negotiate purchase price:** Leverage your locked-in financing to negotiate the best out-the-door price with the dealer.


  1. **Complete purchase:** The dealer handles transfer of legal ownership including safety certification, registration, licensing, etc.


  1. **Receive funds:** Approved loan amount is deposited to your specified bank account once you have selected the vehicle.


  1. **Make payments**: You make monthly installments over the loan repayment term via pre-authorized withdrawals.


ConsumerAuto and its lending partners aim to deliver a streamlined financing-to-purchase experience for your next car.

While seems legitimate, it’s normal for borrowers to have concerns around fraud or loan scams. Here are some of the key protections to safeguard consumers:


– Platform registered legally as Consumer Auto Financial Solutions Inc.

– Strict legal requirements for auto lenders to disclose all rates/fees/terms.

– Loan agreement must outline all details including conditions, defaults, penalties etc.

– Right to cancel loan within 2 days under Canada’s Consumer Protection Act.

– Option to easily switch or refinance your loan any time at no penalty.

– Multiple consumer complaint escalation mechanisms exist if issues arise later.


As always, remember to carefully review loan terms, borrow only what you can afford to repay, and reach out in case of any concerns later or changes in situation.


Hopefully you don’t face issues later with an auto loan arranged via But if you do, there are options to resolve consumer lending problems:


**First step** is to contact your lender and submit an official complaint in writing explaining the grievance and desired resolution.


If it remains unresolved after 30 days, approach **Credit Counselling Canada** to get free assistance understanding your rights and mediating disputes.


For major frauds or unethical practices with systemic impact, **submit a complaint to Financial Consumer Agency of Canada (FCAC)**. They have authority to enforce regulations and impose penalties.


You can also consult the **Canada Consumer Protection Bureau (CCPB)** to receive guidance on legal recourse including small claims suits against lenders violating agreements.


As a last resort, **reach out to the car dealership** you purchased from in case vehicle return or replacement discussions can lead to a reasonable resolution. does not seem to have sought formal accreditation from standards bodies like the Better Business Bureau (BBB) yet. This appears to be a common situation with relatively younger fintech lending platforms.


However, other credibility indicators suggest they are legitimate and trustworthy:


– Registered legal business entity in Canada since 2016.

– Are transparent about owners, contact details, processes, etc.

– No major complaints found against them online from searches.

– Have a strong TrustPilot rating of 4.2 based on customer reviews.

– Their brand story and vision inspires confidence.

– Dedicated customer service resources.


While not a guarantee, these signals suggest is likely operating ethically to match borrowers with lenders for car financing as claimed. But as always, individuals must exercise caution before committing to loans or partnerships.



– Fast and easy application process.

– Access to guaranteed loan offers.

– Caters specifically to bad credit applicants.

– Pre-approval options available without vehicle selected.

– Quick loan decision turnaround times.

– Funding as soon as within 24-48 hours of approval.

– Educational articles on website for borrowers.




– Rates may be higher than banks for poor credit applicants.

– Limited recourse if issues arise later with matched lender.

– Not accredited by the Better Business Bureau (BBB).

– Online-focused, less opportunity to build personal rapport.

– Refinancing existing loans not available currently.


So in summary, delivers convenience and quick approvals that can offset higher rates. But borrowers must align expectations on areas like customer service channels available later for issue resolution.

If doesn’t suit your needs, here are some other places Canadians with bad credit can consider for auto financing:


– **Banks & credit unions:** Many have special bad credit loan and rebuild programs. Higher rates than prime customers but more trust.

– **Specific auto loan companies:** CarLoans Canada, RateSupermarket, AutoCreditExpress specialize in bad credit space.

– **Peer-to-peer lending:** Borrowell, MogoLoan match borrowers and investors directly.

– **Sub-prime lenders:** Can have very high rates but more flexible qualification requirements.

– **Dealer in-house financing**: Interest rates tend to be higher but may approve with limited credit history.

– **Co-signer loans**: Lower rates by having someone with good credit co-sign your loan.


Be sure to compare all options completely – interest costs, fees, repayment terms, customer service etc – not just upfront eligibility and convenience before deciding on the best loan provider for your situation.

The maximum loan size you can qualify for with bad credit in Canada typically depends on these key factors:


– Your gross monthly income

– Income sources – job stability is key

– Credit score below 600 is considered bad credit

– Current debt obligations and repayment history

– Down payment amount you can provide


Many subprime lenders cap maximum loan amounts to between $25,000 to $35,000 for bad credit applicants. But amounts can be higher – upto $60,000 to $75,000 – for those with higher incomes and lower existing debts.


Getting pre-approved first is the best way to determine the specific loan amount you may qualify for based on your unique credit profile and finances.

If you have bad credit, here are some tips that can help increase your chances of getting approved and securing better auto financing terms:


– Pay down existing debts to lower your debt ratio

– Maintain timely payments on at least some active accounts

– Avoid applying for new credit before your auto loan application

– Build savings for a 20% down payment – reduces risk for lender

– Provide proof of stable income over at least 6 recent months

– Get a co-signer with better credit history if possible

– Furnish additional collateral for secured loan if required

– Complete credit counseling to demonstrate responsibility


The key is reassuring lenders of your ability and intent to make timely payments for this auto loan based on positive recent financial behaviors – despite the bad credit history.

If your initial auto loan application made via gets rejected, here’s the typical reapplication process:


**1 month wait**: It’s recommended to wait at least 30 days before reapplying after any rejection. This demonstrates financial prudence.


**Review reasons**: Carefully check the decline reasons mentioned in the adverse action notice provided to you. Identify aspects needing change.


**Rectify issues**: Make tangible improvements like paying down debts, increasing income, adding co-signer etc. based on the factors behind the rejection.


**Update documents**: Gather updated proofs required to showcase the changes that address reasons your application got denied earlier.


Once such enhancements are made, you can reapply and provide updated documentation. This greatly improves the odds of loan approval the next time around. does not directly provide any loans. They simply connect borrowers to third-party lenders in their network. Each lender has their own eligibility policies regarding bankruptcies when approving auto loans.


However, given their focus on subprime borrowers, many of their lending partners do consider applicants with a bankruptcy, especially if discharged over 12 months ago.


Key factors that improve chances of approval despite bankruptcy:


– Bankruptcy discharge certificate

– Re-established positive credit after discharge

– Proof of steady employment and income currently

– Significant down payment amount

– Completed financial counseling after bankruptcy


So it’s possible to get auto financing via platform even with a bankruptcy on record – subject to certain qualification criteria as above.

Currently, does not directly offer auto loan refinancing services as per their website. But potential for this in future cannot be ruled out.


For now, they only facilitate new financing for vehicle purchases – whether pre-approval financing before selecting a car or applications after you have identified the car you wish to buy. Refinancing may be offered by some of their lending partners.


Until launches specialized refinancing services, here are some alternatives for Canadians to consider:


– RateSupermarket

– Loans Canada

– Borrowell

– Mogo

– Credit unions

– Your existing bank/lender


Run your details through anyway. Their platform may match you to a lender open to taking over your existing auto loan as part of financing your next car purchase.

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