Clutch review: Car purchase and financing platform

Our verdict

Our verdict

With Clutch, you can buy a used car completely online. Browse its inventory, reserve the car you want for 72 hours, and finalize the sale and delivery with a Clutch advisor. Once your car is delivered, you have up to 10 days/750 km to return it if you're unhappy with it. Clutch's car prices are firm, so look elsewhere if you want to negotiate.

Best for: People looking for a used car and don't want to deal with in-person dealerships

Pros

• Hassle-free
• Completely online
• Competitive prices
• Free CARFAX report
• Sell or trade-in available

Cons

• Currently available in Ontario and Nova Scotia only

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Loan Amount

$7,500 - No max.

Loan Term

12 - 96 months

Interest Rate

From 8.49%

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Clutch Car Loans

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Alternatives for residents not in ON or NS

What is Clutch.ca?

Founded in 2016, Clutch claims to be Canada’s first online car retailer that delivers cars to your doorstep so you can test drive them on your own time. Unlike other car-buying sites online, Clutch owns its inventory – it doesn’t connect you to a third-party dealer that has the car you want. It’s similar to Carvana in the US and Canada Drives. Currently, Clutch only operates in Ontario and Nova Scotia.

Overall, Clutch aims to provide customers with a better experience than traditional in-person dealerships through an easy, transparent car-buying process that you can do completely online.

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Canada Car Loans

Alternative: Canada Car Loans

Browse thousands of vehicles from across 200+ dealerships in Canada. Get quick and easy financing from one of Canada Car Loans lending partners.

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Is Clutch.ca legit?

Yes, Clutch.ca is a legitimate car-buying platform. It is BBB-accredited with an A+ rating.

Clutch has also been featured in the news such as the The Globe and Mail and CBC, and it currently has a multi-year partnership with the National Hockey League as the Official Online Pre-Owned Car Retailer of the NHL.

Summary of Clutch cars and financing

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What we like about Clutch.ca

• Easy and convenient. Clutch.ca is a one-stop shop, and it’s all done online. You can apply for financing, shop for a vehicle and have it delivered for a test drive without ever leaving your home. Clutch provides contactless delivery so you can test out your purchase on your own time.
• Competitive prices. Clutch sources its inventory from auctions, trade-ins and partnerships with manufacturers. This removes the overhead cost of showrooms and salespeople, so Clutch is able to provide competitive prices to its customers.
• Money-back guarantee. You have 10 days/750 km to give your purchase a whirl. If you’re unhappy, you can request a full refund or an exchange.
• Large inventory. You can choose from more than 2,000 pre-owned cars, trucks, SUVs and minivans on offer from Clutch‘s inventory.
• High-quality vehicles. All Clutch cars go through a 210-point inspection and come with a free CARFAX report.
• Cross-province purchases (but limited). If you live in Nova Scotia, you can have a car shipped from Ontario for a fee. If you live in Ontario, you can have a car shipped from Nova Scotia for a fee.
• Open-ended terms. If you opt for financing your car, the loan is open-ended and can be paid off at any time without prepayment penalties. You are free to put as much money down on the loan as you’d like. You can also ask to increase your payments to any amount to pay off your loan faster. However, you cannot reduce your payments.
• No down payment. It’s possible to get a loan without paying any money out of pocket to secure your vehicle.
• Flexible payment schedules. You can opt into weekly, bi-weekly or monthly payments. Your first payment must be at least 14 days from your contract date, but you can change your payment date after your first payment comes out.
• Trade-ins accepted. Clutch offers the option of trading in your current vehicle to apply as credit towards your next purchase.
• Sell your car. You can sell your car to Clutch even if you don’t intend to buy a car from them. Clutch accepts cars 2000 or newer with no limit to the amount of kilometres on the odometer.
• Special promotions. Keep an eye out for offers on the Clutch website. Past offers include “No pay for 90 days” in certain provinces and “$2,000 off select cars” on Black Friday.

What to watch out for

• Non-negotiable prices. Clutch already prices its cars competitively, so you cannot negotiate for a lower price. This is a perk if you don’t want the stress of dealing with a salesperson, but if you want to be able to negotiate, then Clutch may not be for you.
• Not available in all of Canada. Clutch has recently shifted its focus on Ontario and Nova Scotia.
• Only used newer cars available. Clutch only has an inventory of pre-owned cars to choose from. Their cars are also on the newer side, so if you’re looking for older, cheaper cars, you’ll need to look elsewhere.
• Fees. Clutch will charge a service fee if you live in Nova Scotia.
• Money-back guarantee limits. Clutch will not accept a return if the car has been modified, in an accident or damaged. If you decide to exchange your car, you have up to three cars to test own. However, the third car will not have a money-back guarantee.

Summary of Clutch.ca reviews

What do Clutch.ca reviews have to say?

People have consistently said that the process of buying or selling a car through Clutch was quick and hassle-free. Those who sold a car to Clutch said they were offered a fair price. Those who bought a car said the service was professional.

Clutch has received a few negative reviews about the complimentary warranty not being honoured.

Where are Clutch’s car centres located?

Clutch has locations in the following cities. Here you can pick up (if you’re buying) or drop off (if you’re selling) your car. You won’t be allowed to visit these locations to view cars before buying.

• Ontario: Etobicoke (223 Evans Ave)
• Nova Scotia: Bedford (20 Duke St)

What types of vehicles can you buy through Clutch.ca?

Browse through over 2,000 used cars, including cars, SUVs, minivans and Jeeps. You will also have a selection of various makes and models from manufacturers such as GMC, Dodge, Audi, Honda, Hyundai, Chevrolet, Nissan and more.

Online car dealers: Canada Drives vs Clutch vs CarDoor

Are Clutch cars high quality?

All Clutch cars go through 210-point inspection and reconditioning to ensure they’re safe and clean. They all come with a free CARFAX report, which allows you to review the vehicle’s history, such as accident/damage records, previous registrations, stolen status and service history.

Clutch also offers a complimentary warranty of 90 days/6,000 km, which covers the following:

How does buying a car through Clutch.ca work?

With Clutch, the entire car-buying process is done online. To start, comb through Clutch‘s inventory of used cars.

Reserve the car you want for 72 hours

Once you find a car you like, click “Get Started” to reserve it for 72 hours and fill out the contact information form. You’ll need to pay a $100 refundable deposit. A Clutch customer advisor will contact you to help you finalize your paperwork online and arrange for delivery to your home. You’re responsible for handling insurance for your new car and you must have proof of insurance at the time of your delivery.

Test own for up to 10 days/750 km

After your car is delivered, you have a full money-back guarantee for up to 10 days/750 km so you can to “test own” your vehicle. If you change your mind during this timeframe, contact Clutch by 5pm EST on the final calendar day of ownership to request a full refund or exchange. The car must not be modified, in an accident or damaged.

You’ll be refunded the amount you paid for the vehicle minus government fees and third party fees (if you chose to get financing through a third party partner).

How does financing a car through Clutch work?

Financing with Clutch is similar to buying. After you’ve selected your car, you’ll need to submit a credit application, which takes about 10 minutes to complete. Clutch will submit the application to the bank to determine what interest rate you qualify for. Interest rates start at 8.49%, but they will vary depending on your situation.

Am I eligible for a loan?

To be eligible for financing via Clutch, you’ll need to meet the following criteria:

• Be employed for more than three months.
• Have a minimum credit score of 580.
• Be a Canadian resident with a valid Canadian address.
• Have a valid driver’s licence and be the age of majority in the province you live in.
• Have a valid Canadian bank account.
• Have a maximum of one bankruptcy.

When your vehicle is delivered to your home, you’ll also need to provide the following:

• A void cheque or direct deposit form for the bank account you want your payments to come from.
• A copy of your new insurance faxed or emailed to Clutch.
• A valid driver’s licence.

How to apply for Clutch.ca in 8 steps

If you’re ready to apply for Clutch Car Loans, follow these steps:

1. Click the “Go to site” button on this page, or head to the Clutch homepage to start your application. Select the province you live in to proceed.

2. Search through Clutch‘s inventory of vehicles to zero in on the car you’d like to buy or finance. Clutch lists its overview, pricing, features and specs. You can read through Clutch‘s inspection report for a detailed look at the car’s condition. Clutch also lists what financing would look like. Click either “Get Started” or “Apply for Financing.

3. Start your application by plugging in details, such as your trade-in value if you have a car you’d like to trade in, your down payment and your ideal loan length. Click “Continue with these terms.”

4. Answer if you’re applying on your own or with a co-applicant. Click “Continue.”

5. Provide your full name, email, phone number and date of birth. Click “Continue.”

6. Provide identity verification with your social insurance number (optional), your driver’s licence number, your driver’s licence expiry and the issuing province. Click “Continue.”

7. Read through your application submission and then hit “Submit.”

8. You should receive a phone call from a loan specialist who will help you with the next steps for your loan application.

How much will a car loan from Clutch cost?

The cost of your auto loan will depend on your interest rate (which is decided based on personal and financial factors), loan amount and loan term. As an example, a $20,000 Clutch.ca auto loan with a 6.15% APR and loan term of 60 months (5 years) will have a monthly payment of $388.05 and a total loan cost of $23,283.15, which includes $3,283.15 paid towards interest alone.

• How to use this car loan monthly payment calculator

  1. Enter the amount you want to borrow to buy a car under Loan amount. This might not be the same as the cost of your car when you add sales tax and minus the amount of your down payment.
  2. Write the amount of time you have to pay off your car loan under Loan terms (in years). If your loan term is in months, divide it by 12 first.
  3. Enter the interest rate you expect to pay on a car loan under Interest rate. If your car loan comes with fees, enter the annual percentage rate (APR) instead.
  4. Click Calculate.

Bottom line

In a recent Finder survey, more than 1,850 Canadians were asked where they plan to buy a vehicle in 2023. Dealerships are still the most popular method of finding and buying a vehicle, however, buying a vehicle online is fast becoming a popular option. In Ontario, 1 in 10 would buy a vehicle online, while 20% of Nova Scotians would buy a vehicle online.

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Frequently asked questions about Clutch.ca

• What is the minimum amount I can finance through Clutch.ca?

  The minimum amount you can finance is $7,500 after taxes.

• Do I need car insurance for my car from Clutch.ca?

  Yes, you do. You will need to have proof of insurance for your new car at the time of your delivery. You can date the policy to take effect on the date of your delivery appointment. You can either print off the proof of insurance, show it to Clutch on your smartphone or email or fax it to Clutch ahead of your delivery.

• What if I don't like my car from Clutch.ca?

  All Clutch cars come with a 10-day money back guarantee. If you decide you don't like the car during your 10-day test drive, contact Clutch to set up a return or exchange. If you get a refund, you'll receive the amount paid for the vehicle minus government fees and third party financing fees (if applicable).

• Can you negotiate on Clutch.ca?

  No, Clutch.ca does not offer any features that allow you to negotiate a vehicle's price. Instead the company is committed to pricing the vehicles in its inventory "as competitively as possible," so you shouldn't have to worry about getting a good deal.