Car Deal Canada

Is The Auto Providers Legit?

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Searching for a used car loan with bad credit can feel like navigating a minefield. Promises of guaranteed approvals make it tempting to jump at the first financing offer that comes your way. But not all subprime lenders are created equal. While some provide a legitimate path to auto financing for borrowers with less-than-perfect credit, others use predatory tactics and hidden fees. Determining the trustworthiness of a subprime auto lender is crucial.


In this article, we’ll explore whether one popular bad credit auto lender, The Auto Providers, is a reliable option or a lender to be wary of. With promises of connecting customers to special financing offers and a network of dealerships, The Auto Providers markets itself as a one-stop-shop for those needing high-risk car loans. We’ll dive into the red flags and signs of legitimacy to uncover if this lender is too good to be true or potentially worthwhile for credit-challenged car shoppers in Canada.


By reviewing the reputation, loan terms, and customer experiences with The Auto Providers, you’ll gain the knowledge to determine if this subprime lender deserves your business and trust. Protecting yourself from predatory lending is key to finding affordable transportation without saddling yourself with years of excessive fees and interest charges.



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What is The Auto Providers?

The Auto Providers is a used car dealership that specializes in providing auto loans to Canadians with bad credit. Founded in 2010 and headquartered in Toronto, they have since expanded to over 35 locations across Ontario, Alberta, and British Columbia.

This dealership network promises “100% approval” for auto financing, even for customers with bruised credit or past bankruptcies. They advertise that they can help those who have been turned down elsewhere find a reliable used car with flexible loan terms adapted to their budget.

The Auto Providers says they have access to a network of banks, credit unions, and subprime lenders who are willing to finance higher-risk borrowers. Through their online application portal, they claim customers can get matched to a lender and pre-approved in minutes for in-house financing.

Some of the specific bad credit auto loan services advertised by The Auto Providers include:

 

  • Used car inventory of over 5,000 vehicles across their dealership lots
  • Loans for cars, trucks, SUVs, and minivans
  • Terms from 12-84 months
  • No minimum income requirements
  • No upfront fees
  • Same day approvals
  • Warranties and after-sale support

 

Red Flags to Watch Out For

When searching for bad credit auto financing, it’s important to watch out for some common red flags that could indicate a predatory or outright scam lender:

 

Upfront Fees

One major red flag is being asked to pay significant upfront fees before getting your vehicle. Many legitimate lenders will have small application fees, but large upfront charges before approval or receiving the car is a sign of a potential scam.

 

Requests to Stop Current Payments

A dishonest lender may advise you to stop making payments on your existing auto loan while they broker a new deal. This can seriously damage your credit and lead to repossession. Only stop payments when you have signed a new loan contract.

 

Teaser Interest Rates

Scammers will often advertise very low interest rates to get you in the door, but the actual rate ends up being much higher after you’ve signed the contract. Only trust advertised rates when they are clearly disclosed as “APR” or “annual percentage rate.”

 

Hidden Fees

Shady lenders bury hidden fees deep in the fine print, so you don’t realize how much you are paying above the base price. Carefully read the full contract and get clarification on any questionable fees before signing.

 

Evidence The Auto Providers is Legit

While no lender is perfect, there are several signs indicating The Auto Providers is likely a legitimate option for Canadians seeking bad credit auto financing rather than an outright scam:

 

Registered Business with Multiple Locations

The Auto Providers is registered as a business entity in Canada, with offices listed in multiple provinces like Ontario, Alberta, and British Columbia. They provide a real business address and contact information, which scam lenders tend to avoid.

 

Mostly Positive Customer Reviews

Review sites like Google, Facebook, and the Better Business Bureau show mainly positive feedback for The Auto Providers from past applicants. While some complaints exist, the majority of reviews praise their customer service and ability to get financing approved.

 

Responsive Customer Service Reputation

Many past clients mention The Auto Providers having helpful and responsive customer support. They seem willing to answer questions thoroughly before and during the application process, rather than pressuring applicants to commit.

 

What is Bad Credit?

Bad credit refers to credit scores that fall below the “good” or “excellent” ranges. This typically includes scores below 620 according to common scoring models like FICO or VantageScore. The major credit bureaus like Equifax, TransUnion and Experian use these types of scoring ranges:

 

  • 800-850 = Excellent
  • 740-799 = Very Good
  • 670-739 = Good
  • 580-669 = Fair
  • 300-579 = Bad

 

There are a few key reasons why someone may have bad credit:

 

  • Missed or late payments on loans and bills
  • High credit utilization ratio (using too much of available credit)
  • Defaults on previous loans
  • Collections accounts
  • Bankruptcies
  • Limited credit history

 

Having a credit score under 620 will make it very difficult to get approved for prime auto loans from banks and credit unions. Subprime lenders that specialize in bad credit are more likely to approve applicants, but will charge much higher interest rates and fees.

 

Getting Approved with Bad Credit

Getting approved for an auto loan when you have bad credit can seem daunting, but it is possible with the right preparation and knowledge. Here are some key strategies to boost your chances of getting approved:

 

  • Check your credit report – Reviewing your credit report from Equifax or TransUnion allows you to understand your current credit score and any negative items impacting it. Knowing this information allows you to explain any red flags to potential lenders.
  • Improve your credit – In the months leading up to your auto loan application, work on improving your credit by paying bills on time, paying down debts, and limiting new credit inquiries. Even small boosts can help.
  • Get pre-approved – Many lenders allow you to get pre-approved for financing which shows dealers you are a serious buyer. This gives you more negotiation power.
  • Make a large down payment – A down payment of 20% or more gives lenders confidence you are invested in repaying the loan. Having more equity in the vehicle also lowers the lender’s risk.
  • Bring proof of income – Lenders will want to verify your ability to repay the loan. Bring recent pay stubs, tax returns, and bank statements to prove your income.

 

When speaking to lenders, be prepared to answer questions on:

 

  • Your employment status and income
  • Residence history
  • Other monthly expenses and debts
  • Source of down payment
  • References

 

Having the right documentation ready will also help demonstrate your creditworthiness. Important documents to have include:

 

  • Driver’s license
  • Recent pay stubs
  • W-2s or tax returns for past 2 years
  • Proof of car insurance
  • Debt information
  • Down payment source documents

 

While bad credit makes getting approved more challenging, being prepared with improved credit, a down payment, proof of income, and the right documentation will help you get the car loan you need.

 

Alternatives to Bad Credit Lenders

If your credit score is low, bad credit lenders may seem like your only option for getting approved for a car loan. However, you may have better alternatives through traditional lending sources like banks and credit unions.

Many mainstream banks can offer competitive auto financing rates, even if you don’t have perfect credit. Large national banks like RBC, TD, Scotiabank, and BMO are typically more flexible than smaller banks when it comes to approving car loans for people with fair or average credit scores.

Banks will still review your credit report, income, existing debts, and down payment. But they tend to look at your entire financial profile instead of just your credit score. With some banks, having an existing checking or savings account in good standing may help your chances of getting approved.

Credit unions are another alternative to explore for bad credit borrowers. Credit unions are member-owned nonprofits that often offer better rates and more personalized service compared to large banks. Since they are focused on serving their members, some credit unions may be willing to overlook credit challenges if you have a solid history with them.

Look for credit unions you may be eligible to join through your employer, associations, where you live, or family members. Building an account history with a credit union first can help build trust that may lead to approval for a used or new car loan, even with less-than-perfect credit.

 

Choosing a Bad Credit Lender

When evaluating bad credit auto lenders, there are several key factors to research before applying for financing:

 

Licensing and Certifications

Make sure the lender is properly licensed to operate in your state or province. They should be registered with organizations like the Better Business Bureau. Licensed lenders follow regulations and laws, while scammers tend to avoid oversight.

 

Comparing Loan Terms

Get multiple loan quotes to compare interest rates, repayment terms, loan length, and other costs. A legitimate lender will clearly disclose all rates and fees upfront for you to make an informed decision.

 

Add-On Fees

Many lenders charge extra fees like application or documentation fees. Compare these costs between lenders as they can significantly increase your total repayment amount.

 

Prepayment Policy

Ask about prepaying your loan early without penalties. Some lenders charge expensive fees if you pay off the loan quicker than the original term length. Flexible prepayment policies offer savings.

 

Spotting Auto Loan Scams

Unfortunately, there are unscrupulous lenders that prey on those with poor credit. Here are some common red flags to watch out for when applying for bad credit auto loans:

 

  • Asking for large upfront fees before providing financing
  • Pressure to stop making payments on your current auto loan
  • Bait-and-switch tactics with interest rates, such as advertising very low rates that end up much higher
  • Add-on fees and charges that aren’t disclosed up front
  • Requests for you to sign the contract before reading it in full
  • Offers to falsify information on your loan application

 

Here are some tips to avoid becoming the victim of an auto loan scam:

 

  • Research lenders thoroughly and read reviews before applying
  • Beware of “too good to be true” interest rates or approvals
  • Never sign anything without reading the full contract
  • Watch out for pressure sales tactics urging you to act fast
  • Don’t provide personal information over the phone to unknown callers
  • Ask for all verbal promises in writing before signing
  • Consult with a financial advisor if an offer seems questionable

 

Being an informed borrower is your best defense against predatory lending practices. If an auto loan offer raises red flags, it’s best to walk away and keep looking until you find a legitimate lender willing to work with your credit situation.

 

Apply with Caution

When applying for an auto loan with bad credit, it’s important to be an informed borrower. Here are some tips to apply with caution:

 

Read all documentation closely. Don’t skim or rush through the paperwork. Make sure you fully understand the interest rate, monthly payments, loan term length, fees, and any other important factors before signing anything.

Ask questions if you don’t understand something. Don’t feel pressured to sign on the spot. Take your time and get clarification on unclear or confusing clauses.

Compare options from multiple lenders. Look at the total cost of financing over the full loan term, not just monthly payments. Get quotes from banks, credit unions, and other sources beyond the dealership.

Consider bringing someone you trust to review the paperwork with you. They may spot something you miss. At minimum, have them review before you sign.

Know your rights. Dealers must disclose important loan details upfront. You can walk away from a deal after signing if you identify unacceptable clauses.

Trust your instincts. If something seems too good to be true, it probably is. Don’t ignore red flags or warning signs just because you need a car.

Being an informed borrower and reading all documentation closely is key to getting the best auto loan for your situation. Avoid rushing into agreements you don’t fully understand.

 

Know Your Credit Score

Before applying for any auto loan, it’s critical to check your credit reports from Equifax and TransUnion. This will let you know your current credit score and if there are any errors dragging it down. You can get free copies of your credit reports once a year. Review the reports closely and dispute any inaccurate information by contacting the credit bureaus. This can boost your score.

Keep an eye on your credit by checking your score every few months before applying for a loan. Sudden drops in your score can indicate identity theft or unpaid debts sent to collections. Monitor your credit regularly and address any issues right away. This vigilance will help maximize your chances for approval.

Improving your credit score takes time, but it’s worthwhile before seeking auto financing. Pay all bills on time, lower credit card balances, and correct credit report errors. With a higher score, you’ll qualify for better loan terms from more lenders. Check your reports and take steps to boost your credit prior to requesting any auto financing.

 

Improve Your Credit

If you have bad credit and are looking to improve your credit score to get approved for an auto loan, there are a few key steps you can take:

 

Make payments on time – One of the biggest factors in your credit score is your payment history. Be sure to make at least the minimum payments on all your bills and loans by the due date each month. Setting up autopay through your bank can help ensure you don’t miss payments.

 

Pay down balances – Try to lower your credit card balances and other revolving debt. The credit utilization ratio looks at how much of your available credit you are using. The lower the ratio, the better.

 

Limit new credit – Only apply for new credit if absolutely necessary while trying to improve your credit score. Too many new credit inquiries and accounts can lower your score temporarily.

 

By following these three steps, and with time, you can start to steadily improve your credit. Be sure to check your credit reports regularly and continue to practice good credit habits. With improved credit, you’ll have a better chance at qualifying for an auto loan and getting a lower interest rate.

 

Compare Multiple Lenders

When searching for bad credit auto loans, it’s essential to compare offers from multiple lenders. Don’t go with the first lender that approves you. Take the time to compare interest rates, fees, loan terms, and other factors.

A great way to compare lenders is to get preapproval offers. Here’s how it works:

 

  • Apply with several lenders. Many let you get preapproved online in minutes.
  • Review the preapproval letters detailing the loan terms, rates, fees, etc.
  • Compare the total cost of the loan between lenders, not just the interest rate.
  • Choose the lender that provides the best loan for your situation.

 

Preapprovals allow you to compare real loan offers side-by-side. You’ll see differences in interest rates, origination fees, add-ons like GAP insurance, early payoff penalties, and more. It’s an easy way to find the most affordable financing option.

Don’t forget to read the fine print! Get clarification on any fees or charges that are unclear. A lender may advertise a low rate but make up for it with high origination fees. Look at the total cost of the loan, and don’t get tricked by a teaser rate.

Taking the time to get multiple preapproval offers can save you hundreds or even thousands of dollars over the loan repayment period. Never accept a loan until you’ve compared all your bad credit auto loan options.

 

Read Loan Details Closely

When reviewing auto loan offers from lenders that specialize in bad credit, you’ll want to carefully analyze the fine print before signing anything. This is especially important if you are comparing multiple loan offers side-by-side.

Focus on the key factors like:

 

  • Loan Length – How many months or years will the loan term last? Longer terms mean smaller payments but greater interest costs over time.
  • Interest Rate – What is the APR or annual percentage rate being quoted? Compare this across lenders to find the lowest rate.
  • Monthly Payments – Look at the total monthly payment quoted and how it breaks down into principal, interest fees, etc.
  • Prepayment Terms – If you pay off the loan early, will there be any penalties? Make sure prepayment policies are clearly stated.

 

Understanding these crucial details will help you determine the best auto loan option for your situation. Never feel rushed into signing; take your time and carefully analyze the numbers on any financing agreements.

 

Conclusion

In summary, The Auto Providers appears to be a legitimate bad credit auto lender in Canada, though some caution is still advised. They are a registered business with multiple locations, mostly positive reviews, and a reputation for responsive customer service. However, it’s wise to research any lender thoroughly before providing personal information or signing financing contracts.

For those with poor credit seeking car loans, the keys are knowing your credit score, comparing interest rates and fees from multiple lenders, reading all loan details carefully, and watching for typical auto loan scam warning signs. While financing will be more expensive with bad credit, being an informed borrower can help you avoid predatory lending and get reasonable loan terms for your situation.

With extra diligence and research, Canadians with bad credit can secure auto financing to purchase a quality used vehicle. Just make sure to explore all your options, understand the terms fully, and avoid potential scams. If you approach car loans carefully and realistically, you can get back on the road even with less-than-perfect credit.

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Questions About The Auto Providers

The Auto Providers is a used car dealership based in Concord, Ontario. According to their website, they specialize in helping people with bad credit get approved for car loans. The Better Business Bureau shows they are not an accredited business and have received some customer complaints in the past regarding issues like misrepresentation and failure to honor commitments. Overall reviews are mixed. If considering The Auto Providers, be sure to thoroughly research, read all fine print, and compare to other bad credit car loan options in Canada.



Based on their website and online reviews, The Auto Providers appears to sell a range of used vehicles including sedans, SUVs, trucks, and vans from various makes and models. As a buy here pay here type used car lot, their inventory likely consists of older, higher mileage vehicles typically priced under $10,000 CAD. They cater to customers with bad credit, so the cars are sold “as-is” without warranties. Be sure to get any vehicle inspected before purchasing from them.



The Auto Providers offers auto loans to customers with bad credit. Approved buyers can finance vehicles from them over payment terms of 12, 24, 36, 48 or 60 months. Interest rates can vary greatly based on individual credit scores but appear to typically range between 15-29%. There are often significant administration fees charged too. Read all financing fine print carefully and be prepared for much higher overall costs than standard car loans.

Yes, according to some online customer complaints, The Auto Providers does charge admin and documentation fees beyond the negotiated sales price and interest charges. Some buyers have reported fees adding several thousand dollars to the overall loan cost. Be sure to find out the full breakdown of any fees in writing first before signing financing contracts if you decide to purchase from them.

Likely not. As a buy here pay here used car lot, The Auto Providers sells older vehicles on an “as-is” basis. This typically means there is no option to return vehicles for refunds minus certain legal lemon law protections in Ontario. You assume all responsibility for mechanical issues or repairs needed once driving the car off their lot. Be sure to get any vehicle thoroughly inspected first before finalizing a sales purchase.

Possibly. Online reviews indicate you can try negotiating with The Auto Providers on vehicle price, but they may not come down much given their target customer segment. As a dealer focused on buyers with bad credit, their prices are often higher than fair market value to begin with. Be prepared to pay their full asking price or explore other used car options if needed.



Yes, The Auto Providers should allow you to have any vehicle inspected by a trusted independent mechanic prior to sale. In fact, due to their mixed reputation and older car conditions, it’s highly advisable to thoroughly inspect any vehicle yourself first before purchasing. Keep in mind their cars sold “as-is” so you assume responsibility for any issues found post-purchase.

Reviews on their customer service are very mixed. Some report decent experiences working with their sales staff. However, many others describe pushy sales tactics, lack of transparency on full costs, and issues getting problems resolved after sale. Professionalism appears to vary greatly depending on which staff member assists you. Manage expectations closely and oversee all details of any deal yourself.

 

Yes, that is The Auto Providers’ specialty. They work to connect customers with poor credit to higher risk lenders willing to finance vehicles sold on their lot. Approval odds depend greatly on individual factors but they do advertise helping those with bankruptcies, collections, slow pays, and more get car loans. Expect much higher interest rates and restrictions compared to standard car loans however.



According to The Auto Providers website, they can often provide instant preliminary loan approval decisions to customers in minutes. They collect basic information first, then connect applicants to their lending network to explore bad credit financing options for their used vehicle inventory. The full loan approval decision may take 1-2 days in some cases depending on verifying details with the matched lender.



Yes. While The Auto Providers specializes in buyers with poor credit, they do check applicant credit reports and scores to match them with appropriate subprime lenders willing to take the risk. Customers should be prepared to provide their social insurance number and authorization for the dealership to complete a full credit check as part of the loan approval process.

Tips to improve your odds of getting approved for a car loan with The Auto Providers despite having bad credit include paying down other debts first to lower your overall utilization, avoiding any new credit applications in the months preceding your auto loan application, having steady verifiable income from employment, providing a sizable down payment of 15-20% or more, and being flexible on vehicle choice if needed.

Yes. When you finance a vehicle from The Auto Providers, they use special GPS tracking and remote disabling technology in the cars to monitor loan payments. If any payment is more than 2 weeks late, they can remotely disable the vehicle. If you go 30 days or more past due, they can legally repossess the car and pursue additional collections efforts including potential wage garnishment.



The Auto Providers operates a small independent used car lot located in Concord, Ontario. Google reviews show a very basic operation with their vehicle inventory parked in a gravel lot. Their office appears dated and lacks a lot of the amenities found at larger dealers. Expect a no-frills car buying experience focused more on financing those with challenged credit than customer experience.



According to their website, The Auto Providers does allow customers to come directly to their dealership location each month to hand deliver auto loan payments in cash if preferred. This may be useful for those buyers lacking bank accounts. However, they encourage electronic payments and do charge a processing fee for any cash payments made on site.

The Auto Providers works with a network of specialized subprime lenders across Canada focused on higher risk auto loans. This includes smaller finance companies, independent lenders, and private capital groups willing to take on non-prime borrowers most banks would decline. They serve as a loan broker matching customers to various lending partners approving and funding the purchase from their dealership.

Yes. Those with bad credit seeking auto financing do have some alternatives beyond The Auto Providers with better reputations including:

– Local credit unions specializing in second chance auto loans

– Major banks with specialized subprime lenders like TD Auto Finance or Scotiabank Car Loans

– National brokers like Car.Loan.com or Auto Credit Express

– Direct lenders like Carbucks.ca,321Lend.ca, or AutoLoans.ca

According to the Better Business Bureau and other online reviews, the most frequent complaints customers have with The Auto Providers pertain to misrepresentation of vehicle condition or loan terms, lack of transparency on total fees charged, problems getting issues resolved post-purchase, safety and mechanical issues found with their older used cars, and trouble getting loaner vehicles when repairs are needed.

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