20 car loans in Ontario

For many Ontarians, a car is a necessity. And if you’re shopping for a new set of wheels, there’s a good chance you’ll also need to start comparing car loans.

Our guide below explains how car loans in Ontario work, the key features to focus on and the eligibility criteria you’ll need to consider for a successful application. But before that, let’s take a look at Ontario car loans from 20 lenders.

Compare 20 car loans in Ontario

Lender	APR	Loan term	Highlights
	3.90% - 29.90%	12 - 96 months	Multiple quotes for good or bad credit	Go to site Learn more
	0.99% - 46.96%	3 - 60 months	Multiple offers, accepts good and bad credit	Go to site Learn more
	3.90% - 29.99%	12 - 96 months	Find you quality vehicles and financing offers, accepts good and bad credit
	From 8.49%	12 - 96 months	Used car loans for good credit	Go to site Learn more
	4.90% - 29.95%	3 - 96 months	Accepts no down payment or cosigner, good or bad credit is okay	Go to site Learn more
	1.99% - 34.99%	12 - 96 months	Offers from lenders and dealerships, accepts good and bad credit	Learn more
	Varies	24 - 84 months	Finance many types of vehicles, good credit only	Learn more
	0.00% - 29.99%	Varies	Partnered with dealers, accepts all credit	Learn more
	0%-29.99%	Not disclosed	All credit types accepted, buy a car online	Learn more
	Not disclosed	Not disclosed	Partnered with many lenders, accepts bad credit and no credit	Learn more
	4.49% - 29.95%	24 - 96 months	Accepts all credit types	Learn more
	Not disclosed	Not disclosed	Online vehicle delivery available, accepts good and bad credit	Learn more
	Not disclosed	Not disclosed	Partnered with dealerships, accepts all credit scores	Learn more
	Not disclosed	Not disclosed	Used car loans, vehicle delivery available	Learn more
	0% - 29.90%	Not disclosed	Provides car loans from banks and in-house financing	Learn more
	From 3.99%	Not disclosed	Buy a car online, accepts good, bad and no credit	Learn more
	3.49%-29.95%	12 - 96 months	Accepts no down payment and all credit scores, self-employed is okay	Learn more
	Not disclosed	Not disclosed	Accepts good and bad credit, no down payment options	Learn more
	Not disclosed	Not disclosed	New and used car loans, accepts good and bad credit	Learn more
	4.99%-29.5%	Not disclosed	Accepts all credit types	Learn more

Where can I get car loans in Ontario?

If you need vehicle financing to help you with your purchase, you have a few options to choose from:

• Dealership financing. While you’re test driving cars at the dealership, you can seek financing there as well. Your dealer will send your details to multiple lenders to see which ones will approve your loan application.
• A bank or credit union. Another option is to pre-qualify for a car loan before you go to the dealership. In this case, you’ll apply directly to a bank or credit union of your choice. Popular banks in Canada offering car loans in Ontario include Scotiabank, RBC, CIBC and TD Canada Trust.
• An online lender. There’s a wide range of online lenders to choose from and they often have more lenient eligibility requirements compared to traditional lenders.
• An online broker. Online car loan brokers could be an ideal option if you have bad credit. By filling out one simple application, you can compare car loan offers from multiple lenders who want to finance your purchase.

Can you get bad credit car loans in Ontario?

If your credit score is between 300 and 600, you’ll likely need a bad credit car loan in Ontario.

In general, bad credit car loans come with higher interest rates and fees since there’s more risk for the lender. So it’s important to compare your options before committing to a loan to ensure you’re getting the best rates for your financial situation.

What is the average rate for a bad credit car loan in Ontario?

Interest rates on bad credit car loans in Ontario typically range from 14% to 29.99%. The financing interest rate you’re approved for will depend on key financial factors like your credit history, income and each lender’s specific eligibility criteria.

Steps to get car loans for bad credit in Ontario

If you have bad credit, follow these steps to improve your chances of securing a car loan in Ontario:

1. Check your credit. Check your credit report with the credit bureaus to make sure your credit history is accurate and to find out your credit score. If you notice inaccuracies, report the errors and make sure they’re removed before you apply.
2. Focus on bad credit lenders. Steer away from traditional lenders that require a high credit score, and instead zero in on lenders that accept your credit score. With so many bad credit lenders available, decide on which features are most important to you. These could be speed, loan amounts, interest rate and flexibility with repayments.
3. Check whether you could improve your application. If you have a trade-in or down payment to apply to your bad credit car loan in Ontario, it could help your chances of approval because you’ll require less funding. If you’re willing to include a cosigner, you’ll increase your odds of approval too.
4. Pick a lender and complete the application. You can apply by providing your personal details and employment and income information. You’ll need to use your driver’s licence as proof of ID, while the lender may ask for copies of your pay stubs or bank statements to confirm your salary. It’s worth pre-qualifying before car shopping so you know you have the financing in hand.

Car loan calculator in Ontario

Calculate your potential car loan monthly payments.

How to compare car loans in Ontario

With so many options available, here’s how to compare options to find the best car loan for you:

• Eligibility requirements. Check the lender’s credit score or income requirements you’ll need to meet to qualify for a loan. Also check whether there are any vehicles the lender won’t finance, such as used cars over a certain age.
• Loan amount. Most lenders set limits on how much you can borrow — typically between $5,000 and $100,000.
• Interest rate. Because the interest rate makes up the majority of a loan’s cost, consider what interest rate each lender offers.
• Fixed vs variable rates. If it’s important to you to secure either a fixed or variable interest rate, check whether your lender offers the option you want. Make sure you understand the pros and cons of each option too.
• Fees. Beyond interest, lenders may also charge origination fees, prepayment penalties and other administrative charges. Check the fine print for the full details.
• Loan term. Most car loans have a repayment period of 6 to 96 months. Ensure your lender provides you with flexibility on loan terms.
• Trade-ins and down payments. If you have a car you’d like to trade in to contribute towards your new purchase or you have a lump-sum down payment, check that your lender facilitates both options.

Are interest rates for car loans in Ontario different from other provinces?

No, interest rates for car loans in Ontario aren’t different from other provinces. According to data from the Bank of Canada, the average car loan interest rate around the country is 8.01%.

Ultimately, lenders need to assess how much of a risk it may be to lend you money. Instead of focusing on which province you live in, these are key factors that determine your interest rate:

• Your credit score. Your lender will pull your credit report to make sure that you don’t have a history of defaulting on loans. You typically need to have a score of 660 or higher to secure a competitive interest rate.
• Your income and employment. Lenders will ask you about your monthly gross income to make sure you can keep up with payments. They’ll also check if you’re employed full-time, part-time or self-employed, or if you’re relying on a pension or government benefits. They’ll also take into account how long you’ve been in your current job.
• Your debt-to-income ratio. Your lender will want to make sure there’s a good balance between your monthly debts and monthly income, which is why they look at your debt-to-income ratio.
• Loan terms. How much you need to borrow and how long you’ll take to repay your loan will affect your rate, too.
• The vehicle you’re buying. New or pre-owned, economical or high-end, lenders take stock of what you’re buying and its value. Used cars typically come with higher interest rates.

How much do car loans in Ontario cost?

The total cost of your loan will vary depending on the interest rate and loan term that apply. To give you an idea of the costs involved, let’s look at the example of a $25,000 loan over a three, five or seven-year term. As you can see in the table below, while a longer loan term means a more manageable monthly payment amount, it also results in you paying a whole lot more interest over the life of the loan.

Vehicles you can finance in Ontario

• New and used cars. Get approved for a loan to buy a brand new or pre-owned car, truck, SUV or minivan. Whether you’re buying old or new, from a dealership, online or private seller, you should have a wide range of makes and models from dozens of manufacturers.
• RV, marine and powersport vehicle loans. Get approved for a loan to buy everything from camper vans to snowmobiles, motorcycles, powerboats and cabin cruisers.

What are the limits on used car loans in Ontario?

If you’re buying a used car, check that the vehicle’s age isn’t beyond the maximum your lender permits. The typical range is about 7 to 10 years old, at maximum. Here’s a look at how various lenders compare:

Compare used car financing

How to apply for a car loan in Ontario

The car loan application process can vary wildly depending on the type of financing you choose. Getting financing from a dealership doesn’t involve most of the steps outlined below, for example — instead, you start at the dealership.

1. Compare lenders.

Choose from banks, credit unions, online lenders or dealership financing. A lot of your decision-making may come down to which lender provides you with the best chance of approval at the most competitive rate.

2. Apply for car loan pre-approval from lenders.

When you’re pre-approved for a car loan, it means they’ve qualified you in advance for an auto loan based on a light review of your finances. Book an appointment at your local bank branch, fill out a digital application with an online lender or visit your local dealership to figure out how much you can qualify for. Compare the offers you have to find the best deal.

3. Choose your car loan.

Decide on the loan offer you want to proceed with. To complete your application, your lender will ask to see documents to verify your income, insurance and ID.

4. Read your loan agreement before signing.

Read your loan contract carefully. Note any charges you may incur for late or missed payments, any refinancing changes, and if there is an option to make lump-sum payments ahead of schedule.

5. Buy your car.

With your loan finalized, you should receive the funds to buy your car within a few business days at most. Create a repayment plan and make sure you stick to your loan’s terms and conditions.

Required documents to get car loans in Ontario

Most lenders ask to see at least three documents when you apply for a car loan:

• Your driver’s licence. Your lender might ask to see your licence or require your licence number. Either way, have it on hand.
• Your insurance card. Most lenders require you to have car insurance before applying for a loan.
• Employment verification. You might be asked to submit tax returns, bank statements or recent pay stubs to prove you make enough to afford your car loan.

Learn more about car loans in Ontario

1. CarsFast

• How they help: CarsFast offers an online platform where you can compare car loans and rates from multiple lenders. It works with a network of dealers across Canada to help you find the loan you need, and specializes in auto loans for borrowers with bad credit and limited credit histories.
• APR: 3.90% - 29.90%
• Loan term: 12 - 96 months
• Serviced areas in Ontario: All
• Eligibility requirements: Must have steady employment and a gross income of over $2,000/month
• Accepts bad credit: Yes

What do people have to say about CarsFast?

There are limited online reviews for CarsFast. However, its website is owned and operated by LendingArch, which has received largely positive reviews on Trustpilot. Several reviewers praise LendingArch for simplifying the loan application process, but there are occasional complaints about customer service issues.

Reviews verified as of March 7, 2023.

Go to site

2. Loans Canada

• How they help: Loans Canada is an online broker with the nation’s largest lender network. You can submit one application and then compare offers from multiple lenders, and borrowers with good credit and poor credit are welcome.
• APR: 0.99% - 46.96%.
• Loan term: 3 - 60 months
• Serviced areas in Ontario: All
• Eligibility requirements: Must have stable employment and earn at least $1,800 monthly income
• Accepts bad credit: Yes

What do people have to say about Loans Canada?

Customers who praise Loans Canada mention the user-friendly application and loan comparison process. Some negative reviewers seem to refer to scammers impersonating Loans Canada to try and get customers’ sensitive personal and financial information — a scam that is mentioned in an alert on the Better Business Bureau website.

Reviews verified as of March 7, 2023.

Go to site

3. Clutch

• How they help: Clutch is a car buying and financing platform that operates in Ontario and Nova Scotia. It allows you to apply for financing, shop for a vehicle and then have that car delivered to your door so you can test drive it for 10 days / 750km.
• APR: From 8.49%
• Loan term: 12 - 96 months
• Serviced areas in Ontario: All. Location in Etobicoke if you want to pick up your new car in person
• Eligibility requirements: Minimum credit score of 580, must have been employed for at least three months, maximum of one bankruptcy
• Accepts bad credit: No

What do people have to say about Clutch?

With over 1,000 Google reviews, Clutch has received plenty of positive customer feedback. Many reviewers praise Clutch for its easy, no-fuss purchase process and home delivery, while there are limited negative reviews.

Reviews verified as of March 7, 2023.

Go to site

4. Canada Auto Finance

• How they help: Canada Auto Finance specializes in car loans for people at all credit levels. You can apply online with $0 down payment and no co-signer, and you’ll be matched with a loan from a dealer near you.
• APR: 4.90% - 29.95%
• Loan term: 3 - 96 months
• Serviced areas in Ontario: All
• Eligibility requirements: Must have income of at least $1,500 monthly. All bankruptcies must be discharged
• Accepts bad credit: Yes
• What do people have to say about Canada Auto Finance? There are limited reviews for Canada Auto Finance available online.

Reviews verified as of March 7, 2023.

Go to site

5. Canada Car Loans

• How they help: Canada Car Loans is an online broker with a network of over 15 lenders and over 200 dealerships. Bad credit borrowers are accepted, and it’s possible to get access to your loan amount within 24 hours.
• APR: 1.99% - 34.99%
• Loan term: 12 - 96 months
• Serviced areas in Ontario: All
• Eligibility requirements: Must have monthly income of $1,900 or more and have held current job for at least three months
• Accepts bad credit: Yes

What do people have to say about Canada Car Loans?

There are limited online reviews for Canada Car Loans compared to some other providers on this list.

Reviews verified as of March 7, 2023.

6. Coast Capital

• How they help: Coast Capital is one of Canada’s largest credit unions and offers a wide range of financial products and services, including car loans. It offers competitive car loan interest rates, but you’ll typically need good to excellent credit to qualify for a loan.
• APR: Varies
• Loan term: 24 - 84 months
• Serviced areas in Ontario: All
• Eligibility requirements: Must have a credit score of 650 or higher and be able to service debt payment of $300 per month. No past bankruptcies
• Accepts bad credit: No

What do people have to say about Coast Capital?

While there are limited reviews of Coast Capital car loans online, some Coast Capital members complain about poor customer service on the Better Business Bureau website.

Reviews verified as of March 7, 2023.

7. Driving With Steve

• How they help: Driving With Steve helps borrowers at all credit levels connect with auto lenders around the country. It’s easy to apply online, and you’ll need a stable source of income to qualify for a loan.
• APR: 0.00% - 29.99%
• Loan term: Not disclosed
• Serviced areas in Ontario: All
• Eligibility requirements: Must have a steady source of income
• Accepts bad credit: Yes

What do people have to say about Driving With Steve?

Driving With Steve has an average score of 4/5 from 28 reviews on Finder. Positive reviews praise Driving With Steve’s quick and easy application process, but some negative reviewers complain about their information being sold to other companies.

Reviews verified as of March 7, 2023.

8. Auto Loan Services

• How they help: Auto Loan Services aims to make financing a vehicle easy, even if you have bad or no credit. You can apply online and, if approved, choose from an inventory of thousands of vehicles. The car you choose can then be delivered to you anywhere in Ontario.
• APR: 0%-29.99%
• Loan term: Not disclosed
• Serviced areas in Ontario: All
• Eligibility requirements: Must have a gross monthly income of $2,000 or more
• Accepts bad credit: Yes

What do people have to say about Auto Loan Services?

Reviewers compliment Auto Loan Services for its friendly customer service and commitment to helping them find the vehicle they want.

Reviews verified as of March 7, 2023.

9. Priority Car Financing

• How they help: Priority Car Financing says it works with all borrowers to help them get the car they want, including people with bad credit and newcomers to Canada.
• APR: Not disclosed
• Loan term: Not disclosed
• Serviced areas in Ontario: All
• Eligibility requirements: Must have a steady source of income
• Accepts bad credit: Yes

What do people have to say about Priority Car Financing?

Positive reviewers report that Priority Car Financing provides helpful customer service and clearly explains the details of its loans. However, some negative reviewers complain about high loan fees.

Reviews verified as of March 7, 2023.

10. ECHO Auto Finance

• How they help: ECHO Auto Finance specializes in car loans for people who are struggling to get loan approval from a bank. Loans are approved within three hours, and it’s possible to borrow with zero down payment.
• APR: 4.49% - 29.95%
• Loan term: 24 - 96 months
• Serviced areas in Ontario: All
• Eligibility requirements: Must have a steady source of income
• Accepts bad credit: Yes

What do people have to say about ECHO Auto Finance?

Positive reviewers praise ECHO Auto Finance for its responsive customer service and fast financing. However, some negative reviewers complain about poor customer service.

Reviews verified as of March 7, 2023.

11. Autoloans.ca

• How they help: Autoloans.ca specializes in loans for borrowers with bad or no credit. You can apply online and get approved 24/7, browse an inventory of over 5,000 vehicles, and have the car you buy delivered to you anywhere in Ontario.
• APR: Not disclosed
• Loan term: Not disclosed
• Serviced areas in Ontario: All
• Eligibility requirements: Must have a steady source of income
• Accepts bad credit: Yes

What do people have to say about Autoloans.ca?

Many reviewers praise Autoloans.ca for providing friendly customer service to help them find the right financing and vehicle. However, it’s also worth mentioning that at the time of writing, the Better Business Bureau had issued an alert for Autoloans.ca after being unable to contact the company via mail or telephone.

Reviews verified as of March 7, 2023.

12. Approval Genie

• How they help: Approval Genie allows you to apply for Ontario car loans online or at its locations around Ontario. The company says it offers loans for borrowers with good, bad or no credit, including people who have been rejected by other dealerships.
• APR: Not disclosed
• Loan term: Not disclosed
• Serviced areas in Ontario: Dealerships in Mississauga, Scarborough, Ottawa, Kingston, Hamilton and Whitby
• Eligibility requirements: Must have a steady source of income
• Accepts bad credit: Yes

What do people have to say about Approval Genie?

Approval Genie has an impressive number of five-star reviews, with happy customers commonly praising the company’s friendly customer service and willingness to work with bad-credit borrowers. Some negative reviewers complain about pushy sales tactics.

Reviews verified as of March 7, 2023.

13. DriveAxis

• How they help: DriveAxis is the direct-to-consumer portal of Axis Auto Finance (a Finalist in the Finder: Car Loans Customer Satisfaction Awards 2023). As a fintech, DriveAxis specializes in sub-prime car loans, so borrowers with bad credit are welcome to apply online. Instant financing decisions are available, you can browse thousands of vehicles from DriveAxis’ network of dealers, and the car you choose can then be delivered to your door.
• APR: Not disclosed
• Loan term: Not disclosed
• Serviced areas in Ontario: All
• Eligibility requirements: Must have a steady source of income
• Accepts bad credit: Yes

What do people have to say about DriveAxis?

Positive reviewers praise DriveAxis for helping them get financing even with less than perfect credit, but there are some occasional complaints about poor customer service.

Reviews verified as of March 7, 2023.

14. The Loan Arranger

• How they help: The Loan Arranger specializes in good and bad credit car loans in Ontario. You can apply online and get approved within minutes, then visit one of The Loan Arranger’s five dealerships or browse its online inventory to choose your car.
• APR: 0% - 29.90%
• Loan term: Not disclosed
• Serviced areas in Ontario: All
• Eligibility requirements: Must be regularly employed and have sufficient income to repay your loan
• Accepts bad credit: Yes

What do people have to say about The Loan Arranger?

Reviews for The Loan Arranger are largely positive, with happy customers reporting professional service and a simple application and approval process. However, some negative commenters complained of faulty vehicles and high prices.

Reviews verified as of March 7, 2023.

15. Finance That

• How they help: Finance That is an online marketplace that connects vehicle buyers and sellers. It also provides access to financing for borrowers with good, bad or no credit. You can apply online and get an instant decision, and you can then collect your vehicle or it will be ready to be delivered nationwide within 24-48 hours.
• APR: From 3.99%
• Loan term: Not disclosed
• Serviced areas in Ontario: All
• Eligibility requirements: Must have a steady source of income
• Accepts bad credit: Yes

What do people have to say about Finance That?

Positive reviewers report that Finance That offers a fast and simple financing process, while some negative reviewers complain about delays in the approval process.

Reviews verified as of March 7, 2023.

16. Kaicen Financial

• How they help: Kaizen Financial specializes in prime and non-prime lending, including car loans in Ontario for borrowers with bad credit, no credit and past bankruptcy. You can apply online and get a decision within 24 hours, then shop for a car online and have it delivered to your door.
• APR: 3.49%-29.95%
• Loan term: 12 - 96 months
• Serviced areas in Ontario: All
• Eligibility requirements: Must have a steady source of income
• Accepts bad credit: Yes

What do people have to say about Kaicen Financial?

Kaicen Financial has a five-star rating from almost 100 Google reviews, with customers mentioning its easy application process and professional customer service.

Reviews verified as of March 7, 2023.

17. Approval Team

• How they help: Approval Team accepts all credit scores for Ontario car loans. You can apply online and receive a decision within 48 hours, and borrowers with past bankruptcies or who are new arrivals to Canada are also welcome to apply.
• APR: Not disclosed
• Loan term: Not disclosed
• Serviced areas in Ontario: All
• Eligibility requirements: Must earn at least $1,800 monthly income and be insurable
• Accepts bad credit: Yes

What do people have to say about Approval Team?

Happy customers praise Approval Team for fast approvals and friendly customer service, while there are occasional complaints about high borrowing costs.

Reviews verified as of March 7, 2023.

18. Get Approved Canada

• How they help: Based in Ottawa, Ontario, Get Approved Canada offers car financing regardless of your credit history. It’s partnered with more than 23 lenders.
• APR: Not disclosed
• Loan term: Not disclosed
• Serviced areas in Ontario: All
• Eligibility requirements: Must have a steady source of income
• Accepts bad credit: Yes

What do people have to say about Get Approved Canada?

People in different financial situations have left positive reviews about Get Approved Canada’s friendly and helpful service.

Reviews verified as of March 7, 2023.

19. Car Loan Masters

• How they help: Car Loan Masters is a subprime auto lender that offers bad credit car loans in Ontario from a network of over 50 lenders. You can apply online and get approved within 20 minutes, then shop for a vehicle online and have it delivered to your door.
• APR: 4.99%-29.5%
• Loan term: Not disclosed
• Serviced areas in Ontario: All, but specializes in the Greater Toronto Area and surrounding areas
• Eligibility requirements: Must have minimum monthly income of $1,400
• Accepts bad credit: Yes

What do people have to say about Car Loan Masters?

Customer reviews for Car Loan Masters are largely positive, with borrowers typically mentioning a smooth and seamless financing process.

Reviews verified as of March 7, 2023.

Other ways to finance a car in Ontario

There are a few other options to consider when looking for ways to finance a car:

• Personal loans. Instead of a car loan, you can apply for a personal loan that you can use for any legitimate purpose, including buying a car. If you’re willing to secure your loan with your car, you may score a lower interest rate.
• Home equity loans. Borrowing against the amount you own in your home could be a cheaper way to fund a car loan, though you risk losing your home if you default.
• New credit cards. If you’ve got a new card with a 0% promotional period, you might be able to put some or all of your car loan on plastic. Try to pay as much off as possible before that period is over to avoid high credit card APRs.

Bottom line

You’re spoiled for choice when comparing car financing options in Ontario. If you want to get the best APR and loan terms, you’ll need to have an excellent credit score, a sufficient income and a vehicle that is viewed favourably by lenders. But don’t be discouraged if your financial situation isn’t in great shape — you can also find bad credit car loans in Ontario.

Frequently asked questions about car loans in Ontario

• What credit score is needed for a car loan in Ontario?

  It depends on the lender you'd like to apply to. Bad credit lenders often have a lower threshold, with some even accepting no credit history or a history of bankruptcy. Most traditional lenders, such as banks and credit unions, will require a good credit score of at least 660.

• How do I finance a car in Ontario?

  You can finance a car in Ontario by applying to a lender. Your options include banks, credit unions, online lenders and dealership financing. Each option comes with its own set of eligibility criteria, APRs and loan terms, so make sure you shop around for the best deal.

• Where can I get an auto loan with bad credit?

  In Ontario, dozens of online lenders specialize in helping people who have bad credit, a limited credit history or a history of bankruptcy or insolvency. Bad credit auto lenders will require you to have a steady source of income so they know you can stay on top of your monthly payments. You'll pay a higher interest rate because they're taking a bigger risk by lending you money.

• How much can I borrow with a car loan in Ontario?

  The maximum loan amount available depends on the lender. Some lenders have a $50,000 maximum, others don't impose any limit on the amount they're willing to lend. However, the size of the loan you can qualify for will depend on your credit score, income, and the make and model of vehicle you want to buy.

• Will shopping for a car loan affect my credit score?

  Credit scoring systems usually count multiple auto loan inquiries within a certain time frame — typically two weeks — as one. One inquiry may cause a small, temporary drop in your credit score, but it's better than multiple inquiries.

• Where can I get guaranteed car loans in Ontario?

  Be very wary of any lender that claims to offer guaranteed car loan approval. Lenders need to assess your financial situation before deciding whether you can afford to repay your loan, so steer clear of any lenders that promise "no refusal" loans.