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Is Car Loans Canada Legit?

Is Car Loans Canada Legit?

With the rising costs of new and used vehicles, an increasing number of Canadians are turning to financing to make their car purchases more affordable. This has led to a boom in online auto loan providers promising quick and easy approvals, even for borrowers with poor credit.

One such company that has grown in popularity is Car Loans Canada. With a slick website showcasing their connections to over 300 lenders across the country, they present themselves as the perfect solution for accessing auto financing. However, like with any unknown online entity, it’s prudent for consumers to ask: is Car Loans Canada legit?

In this comprehensive guide, we’ll provide a deep dive into Car Loans Canada. You’ll learn who’s behind it, how their process works, and details from customer experiences. Weighing all the pros and cons, we’ll examine the debate around their legitimacy and provide tips for safe borrowing. Equipped with all the facts, you can determine if Car Loans Canada is the right auto financing route for your needs.

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Who is Car Loans Canada?

Car Loans Canada is an online auto loan referral company founded in 2002. Headquartered in Toronto, Ontario, they aim to connect borrowers seeking car financing with a large network of lenders across Canada.

As a loan referral service, Car Loans Canada does not provide direct lending. Instead, they collect information from applicants looking to finance a vehicle purchase and attempt to match them with a suitable lender from their network of over 300 financial institutions and dealerships.

Their business model revolves around generating leads through their website and call center. When a potential borrower completes an application, Car Loans Canada forwards their information to lenders in their network that may be able to offer financing. If a loan is secured, Car Loans Canada receives a commission from the lender for referring the customer.

According to their website, Car Loans Canada has served over 500,000 Canadians and prides itself on being able to match applicants with specialized lenders for any credit situation, even those with poor credit or past bankruptcies.


Registration and Reviews

Car Loans Canada is registered as a business in Ontario. They have been operating since 2002 according to their website. As an online loan referral company, they are not required to register as mortgage brokers or hold a license from FSCO.

When it comes to third-party validation, Car Loans Canada has a Trustpilot rating of 3.2 out of 5 stars based on just a handful of reviews. They do not seem to be an accredited business with the Better Business Bureau either. While lack of accreditation does not inherently mean a company is untrustworthy, it reduces the standards and accountability they are held to. Consumers should be cautious about reviews and claims made directly by the company itself without independent verification.


Requirements and Approval Process

To get approved for financing through Car Loans Canada’s network, there are some basic requirements you’ll need to meet:


Minimum Income Requirements

Most lenders in the Car Loans Canada network require that you have a minimum monthly income, often around $1,800 per month before taxes. This ensures you have enough income to manage the auto loan payments each month. Specific income requirements can vary by lender.


Documentation Needed

When applying through Car Loans Canada, you’ll need to provide documentation to verify your identity, income, employment, and other details. This usually includes:


  • Government-issued ID like a driver’s license
  • Recent pay stubs or other income proof
  • Bank statements
  • Proof of address


Having these documents ready can help speed up the application and approval process.


How the Approval Process Works

After submitting your application and documents to Car Loans Canada, here is the basic process:


  1. Car Loans Canada will attempt to match you with a suitable lender from their network based on the details you provided.
  2. If matched, the lender will then conduct their own verification and review your application.
  3. The lender makes the final credit decision and determines the loan terms to offer if approved.
  4. Car Loans Canada will notify you once a lender has approved financing.


So while Car Loans Canada facilitates the initial application, the actual lender conducts the final underwriting and approval. Terms and requirements can vary between lenders.


Pros of Using Car Loans Canada

There are some potential benefits to using Car Loans Canada’s services:


Large Lender Network

Car Loans Canada claims to work with over 300 lenders across Canada. This gives them access to a wide range of financing options from various institutions and increases the chances of matching applicants with a lender. With a large network, borrowers have a better shot at approval.


Bad Credit Accepted

Since Car Loans Canada connects with subprime lenders, they may accept applicants with poor or no credit history. Those unable to get approved through traditional lenders due to bad credit may have better luck going through Car Loans Canada.


Pre-approvals Possible

In some cases, Car Loans Canada provides pre-approvals to give applicants an idea of the terms and rates they qualify for before fully applying. This allows customers to get a head start on the car buying process.


Accessible Completely Online

As an online loan referral service, Car Loans Canada offers a simple application process that can be completed fully on their website. Borrowers don’t need to visit physical locations or meet in-person with any lenders.


Cons and Red Flags

While Car Loans Canada can facilitate auto loans for some borrowers, there are several cons and red flags to be aware of:


Not an Accredited Broker

Car Loans Canada is not an accredited broker in Canada. They do not belong to provincial broker associations that require licensing and oversight. This lack of accreditation is concerning.


Mixed Reviews

Reviews of Car Loans Canada are mixed. While some report success, many others claim pre-approvals did not lead to actual loans. There are also complaints about pushy sales tactics. This inconsistency suggests the service may not be reliable.


Hard Credit Checks

Car Loans Canada performs hard credit checks as part of the application process. Too many of these inquiries can damage your credit score. With no guarantee of approval, this is a risk.


Lack of Rate Transparency

Car Loans Canada does not disclose interest rates or loan terms upfront. Applicants get matched to lenders with no information on what financing offers will actually entail. This lack of transparency is problematic.


Alternatives for Financing

While Car Loans Canada provides an option for financing, there are other routes borrowers can consider as well:


Bank Loans

Getting pre-approved for an auto loan directly through your bank or credit union can be a safe borrowing option. Most major banks like RBC, TD, Scotiabank, and CIBC have competitive rates and you’ll know exactly who you’re dealing with. This route may require strong credit though.


Credit Unions

Local credit unions are another source of financing that may be worth exploring. Credit union auto loans often have lower interest rates and more flexibility than big banks. Credit unions aim to serve members of the community.


Other Brokers

Using a different auto loan broker is an alternative to Car Loans Canada. Conduct research to find brokers with solid reputations. Look for transparency, reasonable fees, and a track record of matching borrowers successfully. Some options are Loans Canada, LoanConnect, and


Tips for Safe Borrowing

If you decide to proceed with a loan through Car Loans Canada, here are some tips to ensure a safe and positive experience:


Vet the Actual Lender Thoroughly

Once matched with a lender, do your due diligence by researching their reputation and reviews before signing anything. Confirm they are licensed to operate in your province. Reputable financial institutions like major banks are generally the safest option.


Read All Terms Carefully Before Accepting

Be sure to comb through the fine print to understand the full loan details including any fees, penalties, insurance requirements, etc. Don’t gloss over anything even if you’re rushed or told “not to worry about it.”


Avoid Paying Upfront Fees

Legitimate lenders will not ask for large upfront fees before approving your loan. Decline requests for payment or deposits before formal approval.


Check Other Financing Routes First

Exhaust all other options such as financing from your bank/credit union, dealer incentives, manufacturer rebates, etc. before turning to a referral service. This ensures you get the best rate and terms for your situation.


Car Loans Canada Reviews

Reviews of Car Loans Canada from customers are mixed. Here are a few examples of positive and negative experiences users have had:



“Car Loans Canada was able to find me financing when I had been rejected elsewhere. The process was quick and easy and they matched me to a lender who could work with my credit situation. I’m thankful I found them online!”

“As a first-time car buyer I was really nervous but Car Loans Canada made it simple. They explained everything thoroughly and set me up with a 5 year loan that fit my budget. I’d recommend them if you need help getting a car loan.”



“I didn’t end up getting approved for financing through Car Loans Canada. After submitting all my information, they said none of their lenders could approve me. It wasted my time and now my credit score took a hit.”

“Working with Car Loans Canada was frustrating. They didn’t give me many details on the loan options and it took weeks before I finally heard back from a lender. I wouldn’t use them again.”


Overall, it seems experiences can vary widely when using Car Loans Canada. They seem to provide access to lending options those with credit challenges may not find elsewhere. However, approval is still not guaranteed and the process can be lengthy and opaque at times.


The Bottom Line

After reviewing the details around Car Loans Canada, there are some clear pros and cons to weigh if considering using their services:



  • Large network of over 300 lenders can increase options for financing
  • Specialize in bad credit loans
  • Provide pre-approvals in some cases
  • Fully online process for accessibility




  • Not an accredited broker
  • Mixed reviews on ability to deliver financing
  • Multiple hard credit inquiries without guaranteed approval
  • Lack of transparency around actual rates and terms


While Car Loans Canada seems to be a legitimate business, consumers should proceed carefully if considering using their services. Do thorough research on any lender they recommend and watch for suspicious or predatory practices. For the safest experience, reputable banks or credit unions may be a better option.



In summary, Car Loans Canada is a legitimate business that can help connect borrowers to auto financing options through their network of lenders. However, they are not direct lenders themselves. While many have successfully attained car loans using their services, it’s wise to proceed with caution.

Do your due diligence on any lender they recommend, reviewing all terms carefully before signing. Be wary of any suspicious practices or pressure tactics. Also consider exploring other financing routes like your bank or credit union to compare rates and options.

Car Loans Canada seems able to deliver approvals, even for those with poor credit. But make sure you feel fully informed before using their referral services. With the right precautions, it may provide a viable route to financing your next vehicle.


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Questions About Car Loans Canada

Car Loans Canada is a legitimate loan referral service. They have been in business since 2002 and work with over 300 lending partners including major banks and financial institutions. They provide access to car loans for all credit types and do not directly fund loans themselves. Customers have generally positive reviews of their services.


Car Loans Canada works with lenders that offer new and used vehicle loans, refinancing, bad credit financing, and leases. Loan terms can range from 12-96 months. They work with over 300 lenders across Canada to match applicants with a lender that meets their needs.

The basic requirements through Car Loans Canada’s lending partners typically include:


– Gross monthly income of at least $1,800

– Employed at current job for 90+ days

– Valid driver’s license

– Proof of address

– Down payment if required


Credit history and score will be assessed but there are lending partners that work with all credit types. Individual lender requirements may vary.

Pre-approvals through Car Loans Canada can sometimes be instant or within 1 business day. Once matched with a lender, full approval typically takes 1-3 business days. Then it takes another 1-2 days for the funds to be available from the lender. So the total process may take approximately 3-6 business days.

As a loan referral service, Car Loans Canada does not directly set interest rates or fees. Their lending partners offer rates starting from 4.99% for good credit. Rates for bad credit loans may be higher depending on individual factors. There are no Car Loans Canada fees but lenders may charge origination fees of 1-5% of the loan amount.

Yes, Car Loans Canada works with national lending partners that provide auto loans in all Canadian provinces and territories except Quebec due to language laws. So they can assist with getting a car loan anywhere in Canada aside from Quebec.

No, Car Loans Canada does not currently offer a mobile app. However their website is mobile-friendly, allowing customers to apply for a car loan directly from their smartphone browser. They also have a toll-free number for phone applications and support.

Car Loans Canada currently has a BBB rating profile listed as NR (No Rating) and is not BBB accredited. This means there is limited information for the BBB to assess for a rating and accreditation. Reviews seem to generally be positive based on what is available.

Reviews for Car Loans Canada are generally positive across various platforms. On TrustPilot for example, they have a 4 out 5 star rating based on limited reviews. There are some complaints about confusion over lenders they work with but most customers have a smooth loan experience overall. They seem transparent in managing expectations.

For bad credit borrowers, Car Loans Canada provides access to one of the largest networks of subprime lending partners in Canada. Their non-commissioned agents work to match car buyers directly with lenders likely to approve those with poor credit. So they can be a top choice given their expertise and variety of lending relationships.



– Large lender network including major banks

– Access to all auto loan types

– Fast pre-approvals available

– Loans available for all credit scores



– Not a direct lender

– Rates from lending partners may be higher for poor credit

– Complaints of some misleading marketing

Car Loans Canada is a loan broker, not a direct lender. They act as a loan referral intermediary that matches borrowers with their best-fit lending partners but they do not provide the actual loan funds themselves.

Yes, Car Loans Canada does provide free no-obligation pre-approvals that allow you to shop at dealerships knowing your estimated loan amount and rates. This gives you more negotiation leverage without impacting your credit score from too many hard credit checks.

Unlike banks that assess you as individual customer, Car Loans Canada shops rates from hundreds of indirect lenders on your behalf. This gives you more options and better chance at approval. Also, their non-commissioned agents provide guidance for getting best loan terms versus banks that may upsell products.

In their privacy policy, Car Loans Canada states they do not sell or rent customer information. However they do share necessary data with their lending partners in order to match applicants with appropriate lenders. Information is only used for intended loan services.

Yes, Car Loans Canada works with lenders that can approve loans for self-employed applicants by assessing factors like personal credit, projected income statements and other qualifications. Specific requirements may vary between their lending partners.

Once matched with a lender and offer approved, it typically takes 1-2 business days for loan funds to be available from Car Loans Canada’s lending partners. Some may provide same-day funding if final approval is early enough in the day.

Typical documents include driver’s license, proof of income, recent pay stubs, proof of address, list of references, bank statements, tax documents if self-employed, and car details like VIN number. Lenders may request additional documentation if necessary.

Yes, many of Car Loans Canada’s lending partners do provide financing for private vehicle purchases. Additional documentation proving details of the sale may be required. Expect higher interest rates and larger down payments versus dealership vehicle loans.

Car Loans Canada has been operating since 2002. So they have over 20 years of experience specializing in auto loan brokerage and financial services, making them one of the longest-running loan referral companies in Canada.

The head office address for Car Loans Canada is:


Car Loans Canada

40 Eglinton Ave. East Suite 802

Toronto, ON M4P 3A2


This main Toronto location serves as their administrative mailing address for any loan processing documentation or other correspondence.

Yes, you can cancel your Car Loans Canada loan application at any time during the process, either through your online account or by calling their support line. Simply inform them you are no longer interested in moving forward with getting an auto loan and wish to withdraw entirely from the process.

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