Car Deal Canada

Is Canada Drives Legit?

a group of cars parked in a parking lot

Buying a new or used car is an exciting experience. However, finding affordable financing can be a major hurdle, especially for Canadians with poor credit histories. This is where online companies like come in – promising easy approval for auto loans even to applicants with low credit scores or past bankruptcies.

But are the auto financing offers from truly as good as they sound? In this detailed review, we’ll take an in-depth look at to determine if this lender is legitimate and their loans are in the borrowers’ best interests.

We’ll start by explaining how works and the types of loans they offer. Next, we’ll analyze the legitimacy of their lending practices. We’ll also uncover any hidden fees or fine print you should watch out for. To provide a balanced perspective, we’ll explore the pros and cons of using versus other financing options. By the end of this post, you’ll have all the information you need to determine if obtaining financing through is the right choice for your situation.

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What is is an online car financing marketplace that connects consumers directly with car dealerships across Canada. The company specializes in providing auto financing options to applicants with poor credit or no credit history who are unable to qualify for financing from traditional lenders like banks or credit unions.

As an online marketplace, Canadadrives does not provide direct lending. Instead, they broker vehicle loans through third party subprime lenders and match applicants up with dealerships offering financing terms catered to those with less-than-perfect credit.

By focusing specifically on bad credit customers who are typically unable to secure affordable financing options on their own, Canadadrives aims to make vehicle ownership more accessible to all Canadians regardless of their financial situation or credit standing.


Are the Loans from Canadadrives Legit?

One of the most common questions about Canadadrives is whether the loans they offer are legitimate. The answer is yes – the loans are real loans that can provide financing for vehicle purchases. However, there are some important things to understand about how Canadadrives operates.

The key fact is that Canadadrives itself is not a direct lender. Instead, it operates as a loan broker. Essentially, Canadadrives acts as a middleman, connecting borrowers to third party lenders who provide the actual financing.

This model allows Canadadrives to work with applicants who have poor credit or no credit history. Because these borrowers represent a high risk, the interest rates offered are generally quite high in order to compensate the lenders for taking on that risk.

So in summary – yes, the loans facilitated through Canadadrives are legitimate loans from real lenders. But applicants should be prepared for very high interest rates, which could make the financing offer seem predatory.


Hidden Fees to Watch Out For

When financing a vehicle through, applicants should be aware of some hidden fees that can significantly increase the total cost of the loan. Some of the most common hidden fees include:


Upfront Admin Fees

Many applicants are surprised to find that Canadadrives charges an upfront administrative fee, typically several hundred dollars, that is not applied towards the loan principal. This means borrowers will pay interest on the full loan amount even though they received less money upfront after paying this fee.


Prepayment Penalties

Most loans from Canadadrives contain a prepayment penalty clause. This means if a borrower wants to pay off their loan early, they will be hit with extra fees and interest charges. These penalties are usually several thousand dollars and discourage borrowers from refinancing their loan somewhere else at a lower rate.


Pressure to Buy Add-Ons

Canadadrives sales agents often pressure applicants to purchase additional products like extended warranties, credit insurance, or rust protection packages. These add-ons are pure profit for the lender and provide little value to the borrower. Savvy applicants should decline them to avoid thousands in unnecessary charges.

Being aware of these hidden fees can help consumers make an informed decision when considering financing from Canadadrives. The total cost of the loan can end up being much higher than the interest rate alone would indicate once these extras are factored in.


Getting Approved with Bad Credit markets itself as an option for those with poor credit histories to get approved for auto financing. While traditional lenders like banks and credit unions will likely reject applicants with low credit scores, Canadadrives claims to approve people regardless of credit standing.

In most cases, they do not require proof of income or current employment. Applicants only need to state their income, without providing pay stubs or other documentation to verify it. Canadadrives does not thoroughly vet whether the reported income is accurate.

Likewise, Canadadrives does not check credit reports to confirm the poor scores and history claimed by applicants. They take people at their word about having bad credit as justification for requiring their high interest loans.

The lack of income verification and credit checks allows almost anyone to get approved by stating a fictitious income and credit profile. But this comes at a steep price through very high interest rates exceeding 30% in many cases.


What are the Alternatives to

While provides an option for financing to those with poor credit, the high interest rates and fees make it an extremely costly way to purchase a vehicle. Thankfully, there are some alternatives to explore before resorting to subprime auto loans:


Save Up to Buy With Cash

The very best option is to save up enough money to buy a used car with cash. While this requires discipline and patience, it allows you to avoid loans and interest charges altogether. Focus on building your savings and buy only what you can afford outright. This gives you the freedom to negotiate and the peace of mind that comes with no monthly payments.


Approach Your Bank or Local Credit Union

Banks and credit unions often offer better auto loan rates than finance companies, even for borrowers with less-than-perfect credit. Developing a relationship with a local lender can help your chances of approval. Be prepared with a down payment, proof of income, and a solid credit history. Federal credit unions in particular may be willing to work with you despite past mistakes.


Consider Co-Signing with a Better-Qualified Applicant

If your credit is poor but you know someone with strong credit, co-signing on a loan together can help you get approved and lower the interest rate. Make sure it’s someone you trust that you feel comfortable making payments with. While they take on a risk, it can allow you to rebuild credit and get into a better loan down the road.


The Verdict: Proceed with Extreme Caution offers a convenient way to get financed but terms are rarely favorable for buyers. Thoroughly research any financing offer and read the fine print before signing. Shop around for lower rates from reputable lenders before deciding.

While the ease of getting approved for a car loan through may seem appealing, especially for those with poor credit, applicants should proceed with extreme caution. The interest rates and fees charged by the third party lenders that Canadadrives partners with are usually exorbitantly high compared to rates from mainstream lenders.

Before jumping on the first loan offer presented, it is wise to thoroughly research all the terms and conditions. Predatory lending practices like inflated interest rates and hidden fees are common complaints against Canadadrives. Read all paperwork carefully before signing anything and be sure to ask questions if the representative glosses over key points.

Additionally, applicants should shop around and compare interest rates from banks, credit unions, and other reputable auto lenders before deciding. While it may take more time and effort to explore all options, finding a loan with a lower interest rate could save thousands of dollars over the term of the loan. Don’t assume Canadadrives offers the best or only financing option for your situation.

While the convenience of guaranteed financing from may be appealing, especially for those unable to qualify for traditional loans, applicants should thoroughly research any offers and shop around before accepting terms that end up being financially unfavorable over the long run.



In summary, while can provide auto financing to those unable to qualify elsewhere, applicants must practice extreme caution. The interest rates and fees offered are usually exorbitantly high, even predatory, due to the poor credit risk of approved applicants. Canadadrives operates by brokering subprime loans through third party lenders eager to profit off those with limited alternatives.

It’s important to do your own thorough due diligence before accepting any auto financing offer from Canadadrives. Make sure you understand the full terms and read all fine print before signing anything. Applicants should be wary of hidden fees and other “gotchas” that can leave them paying far more than the initial purchase price over the long run.

Shop around and try to secure financing from more reputable sources, such as your bank or credit union, before resorting to a high risk subprime lender like Canadadrives. While they provide an option when you have no other alternatives, it comes at a very steep price. Avoid jumping at offers that seem too good to be true without vetting the lender, and know exactly what you’re getting into before driving off the lot.


Is Canadadrives Legit? The Truth About This Auto Financing Company


Is a scam? is not an outright scam, but buyers should exercise extreme caution when using their services. Canadadrives acts as a loan broker, connecting consumers with third-party lenders who provide the actual financing. They cater primarily to those with poor credit who are unable to qualify for financing elsewhere. While they can facilitate auto loans for people with bad credit, the interest rates and fees from their lenders are usually very high.

There are many complaints about Canadadrives engaging in predatory lending practices. They often exaggerate how easy it is to get approved and downplay the exorbitant rates borrowers will pay. There are also hidden fees borrowers have to pay upfront before even receiving the funds.

So in summary, while Canadadrives is not an outright scam, their practices are misleading and the loan terms they broker are rarely favorable for borrowers. Applicants with poor credit should approach with extreme caution, read all fine print carefully, and shop around to compare rates before accepting a loan offer.


Is Canadadrives a scam?

There are some concerning factors that indicate Canadadrives may not be entirely legitimate:


  • They are not a direct lender – Canadadrives brokers loans through third party subprime lenders who typically charge very high interest rates and fees.
  • There are many online complaints about predatory lending practices, hidden fees, and overly aggressive sales tactics.
  • They cater exclusively to applicants with poor credit who are often desperate and more vulnerable to scams.
  • Income and employment details provided are often not verified before approval.
  • Positive reviews online appear to be planted by the company itself.
  • Vehicle purchase prices are inflated to increase loan amounts.


While not an outright scam, Canadadrives does appear to engage in some unethical practices and take advantage of those with limited financing options. Applicants should proceed with extreme caution and be wary of misleading claims or exploitative loan terms. Thorough research and reading of all fine print is highly recommended before signing any financing contract brokered through Canadadrives.


What are the Interest Rates?

Canadadrives does not disclose interest rates upfront on their website. Rates offered will depend on each applicant’s credit profile and downpayment amount. Generally, interest rates from Canadadrives tend to be much higher than rates from mainstream lenders.

For applicants with poor credit, interest rates can range anywhere from 10% to 29%. For some subprime borrowers with credit scores below 500, rates can exceed 30%.

In addition to high interest rates, Canadadrives loans often come with other expensive fees like:


– Origination fees of up to 10% of the loan amount

– Documentation fees around $300

– Prepayment penalties if you pay off early


So while they make it easy to get approved, the rates and fees make these loans very expensive overall. You’ll end up paying far more over the long run than with a standard auto loan.

Before signing anything, get the full rate and fee breakdown in writing first. And be sure to shop around at banks, credit unions, and other lenders to compare rates. While you may pay a higher rate than prime borrowers, you can likely find more reasonable financing than the sky-high rates from Canadadrives.


Are there hidden fees?

One major area of concern with is the potential for hidden fees that can significantly increase the overall cost of financing. Here are some fees to watch out for if considering a loan through Canadadrives:


  • Upfront administrative fees – These fees may range from $500-1000 and are not applied towards the loan principal. You pay them even if you don’t end up getting approved.
  • Prepayment penalties – If you want to pay off your loan early, you may face penalties of 3 months interest or more.
  • Doc prep fees – Charges for preparing your loan documents and contracts.
  • Late fees – Miss a payment or two and you’ll be hit with hefty late fees.
  • NSF fees – Payments bounced due to insufficient funds trigger NSF fees of $50 or more.


Always read the fine print and ask for full disclosure of all fees. Unscrupulous lenders may try to slip in extra charges that significantly bump up the cost of your loan. Being aware of the potential for hidden fees can help you avoid getting ripped off when using auto financing services like


Do they finance bad credit?

Yes, Canadadrives specializes in offering auto financing to applicants with poor or no credit. They advertise approvals for all credit situations, even bankruptcies and consumer proposals. Their website states “Bad credit? No credit? No problem!” However, this convenience comes at a very steep price.

While traditional lenders like banks and credit unions will not approve loans for applicants with low credit scores, subprime lenders like Canadadrives will. But the interest rates and fees they charge can be astronomical. It’s not uncommon to see rates of over 20% for borrowers with credit scores under 600.

In addition, Canadadrives does not thoroughly verify stated income, so applicants may be approved for larger loans than they can truly afford. This sets up many borrowers for failure and repossession. Unaffordable payments combined with high interest means consumers can end up paying far more than the vehicle is worth over the long run.

So in summary, yes Canadadrives does specialize in financing people with poor credit. But applicants must understand they will pay very high rates and should ensure they can realistically afford the payments before signing. The convenience of approval comes at a steep long-term cost.


Are there better alternatives to

While provides an option for those with poor credit to obtain auto financing, there are often better alternatives that should be considered first:


  • Save up to buy a used car in cash – Avoid financing entirely by buying a cheaper used car with cash savings. This prevents high interest costs.
  • Approach your bank – Many banks and credit unions offer auto loans, even to those with imperfect credit. Rates are usually far lower than subprime lenders.
  • Find a co-signer – Ask a friend or family member with good credit to co-sign the loan. This provides the lender with better security.
  • Shop around – Don’t go with the first lender you find. Compare rates from multiple sources to find the best terms.
  • Improve your credit – Work on improving your credit score before applying for a loan. This opens up better rates and options.


While provides a quick and easy financing option, the rates are rarely favorable. Those with poor credit should always exhaust other alternatives first before accepting a subprime auto loan.

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Questions About Canada Drives

CanadaDrives is an online car financing and dealership company. They work with lenders to provide financing options for people with lower credit scores. However, some people have accused them of predatory lending practices and excessively high interest rates. Overall, they are a legitimate company but shoppers should read all financing terms carefully before signing anything.

Some common car loan scams in Canada include:


– Hidden fees or extra charges added after you think you have agreed on a price. Read all paperwork carefully.


– Spot delivery scams where they let you drive the car home without finalizing financing, then call days later with higher payments. Don’t drive off the lot until financing is 100% finalized.


– Yo-yo scams to get you to return a car already purchased by pretending there was an error in the paperwork. Carefully vet any new paperwork.


– Odometer rollbacks to make a high-mileage car appear to have lower mileage. Always get a vehicle history report.


– Curbsiders posing as private sellers but actually selling trade-in vehicles without disclosing issues. Ask for proper documentation of private sale.

Some reputable used vehicle shopping sites in Canada include:


– – Large selection and detailed vehicle histories with CARFAX reports


– Kijiji Autos – Focus on private sellers with reviews and fraud protection

– – Vehicle research tools and reviews in addition to listings

– – Specializes in certified pre-owned vehicles that have passed inspections

– – Online portal to search dealer inventories across Canada


Always thoroughly inspect any vehicle in person before purchasing.

To avoid buying a used lemon in Canada, be sure to:


– Get a vehicle history report like CARFAX which lists any previous damage, accidents, or major issues


– Have a certified mechanic do a pre-purchase inspection to identify any problems not evident on the surface


– Test drive the vehicle under a variety of road conditions and pay attention to any unusual sounds, smells, vibrations


– Carefully examine paint for signs of body repairs which could indicate prior collisions


– Check all electronic features and mechanical components like windows, locks, lights, brakes, engine, etc.


– Review maintenance records to understand the ownership and service history

To vet an online car dealer, be sure to:


– Check reviews on platforms like Google, Facebook,, etc. Look for consistent satisfaction across many reviewers.


– Confirm they have a valid dealership license for your province by contacting provincial regulators


– Validate any partnerships with manufacturers they claim by checking automaker websites


– Call them to ask questions and assess their customer service responsiveness


– Search online for their company name plus words like “complaint,” “scam,” “review,” etc. to uncover any issues


– Ask for their registration number to verify membership in the provincial dealer organization

To prevent online marketplace scams:


– Reverse image search pictures to check if seller copied them from other listings


– Ask to meet seller in person or do live video chat before purchase


– Don’t provide personal information like your address until sale is finalized


– Don’t pay with methods like gift cards, Western Union, bank deposit that offer no buyer protection


– Authenticate seller identity through social media cross-checking


– Check feedback ratings if marketplace offers them


– Trust instinct if an offer seems too good to be true

Before sending money to an individual seller:


– Ask for photo ID like a driver’s license and proof of address to confirm identity


– Cross-reference the name on their ID with the vehicle’s documentation


– Meet face-to-face for any test drive and financial exchange


– Get copies of current registration papers and title docs with seller info


– Require bill of sale be signed and dated in front of you during purchase


– Verify no liens on title by contacting provincial motor vehicle agency

A private sale used car bill of sale should include:


– Full legal names and contact info of buyer and seller


– Vehicle year, make, model, VIN, mileage


– Sale price and confirmation no outstanding payments or liens exist


– Statement the car is sold “as is” if no warranty included


– Documentation of what is included (spare tires, car manuals, etc.)


– Dated signatures of both parties


Keep your original and give the seller a copy.

Warning signs of a fraudulent online car ad/seller:


– Price far below market value


– Sparce listing details and lack of specific vehicle information


– Seller reluctant to share location, contact info, or meet in person


– Requests payment via odd methods like gift cards, crypto


– Uses stock photos instead of actual vehicle pictures


– Refuses to provide vehicle history documentation


– Claims they need to handle paperwork through some special third-party escrow service


Trust instinct if an offer seems suspicious. Verify via live chat/video, credible documentation, third-party vehicle history checks.

To identify fraudulent delivery emails/texts:


– Check sender address – authentic messages will be from official domain


– Look for poor grammar, spelling errors


– Don’t click links – type official site URL directly


– Verify by contacting company via customer service number


– Check for urgent demands, threats of account closure


– Confirm legitimacy of any tracking codes provided


Stay vigilant and don’t provide personal or payment information unless certain message is authentic.

Some vehicle history report scams include:


– Fake “free” reports used to harvest personal information to scam later


– Upselling additional services that provide no value beyond basic reports from CARFAX/Carproof


– Listing inaccurate or nonexistent VIN numbers


– Displaying stolen vehicle photos that don’t match actual car


Only purchase reports from reputable providers after verifying the VIN physically on the car matches the report.

To vet an unknown online retailer:


– Search name plus “scam” or “review” to uncover complaints


– Check site for contact info, returns policy, privacy terms


– See if prices dramatically undercut everywhere else


– Validate security certifications protect payment data


– Review delivery timeframes and tracking transparency


– Start with small test order first


Research thoroughly, read policies closely, and trust instinct on whether safety and process seem suspicious.

To safely buy via online listings:


– Ask for VIN early then pay for vehicle history report to confirm details legit


– Insist on live video tour of actual vehicle before meeting seller


– Cross-reference seller name/number with ID they provide


– Meet in a safe public place like a bank parking lot for any in-person interaction


– Bring someone with you and don’t go alone to remote locations


– Test drive extensively listening for issues & inspecting body, interior, electronics


Do diligent vetting before sending money or getting vehicle off-site.

Signs of fraudulent account emails:


– Generic greetings like “Dear customer” instead of your name


– Suspicious links asking you to log in and confirm details


– Alarmist threats of account suspension if immediate action not taken


– Requests for sensitive information like passwords or SIN numbers


– Poor grammar/spelling errors


– Sender address from free providers instead of official domain


Call company via official customer service number if unsure on authenticity. Never provide confidential info via links.

Yes, is a legitimate marketplace for getting car insurance quotes. They are an online broker with relationships to multiple major insurance carriers. You can get free quotes easily through their site to then purchase coverage from a partner provider. Make sure to compare quotes and read policy details closely before finalizing any selection.

Signs an Canada online casino is legitimate:


– Licensed by a provincial gaming commission like Kahnawake Gaming Commission


– Encrypted site with SSL certificate protects your data


– Positive reviews on watchdog sites like


– Responsive customer support via live chat or phone


– 3rd party audits of games for fairness like eCOGRA


– Clear bonus terms around rollovers and restrictions


Research licensing, read the fine print, and start small with new sites.

Trusted consumer publications like Consumer Reports provide unbiased used car reviews, ratings, problem histories, and recommendations that can help uncover reliable pre-owned models. Cross-shop their preferred picks with local inventory you find on classifieds or dealer sites. Combine their integrity as an impartial evaluator with your own test drives and inspections before deciding.

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