Car Loans from CarsFast

- Browse thousands of new and used vehicles
- Rates from 4.90% - 29.90%
- Loan terms from 12 - 96 months
Canadians lost $275 million to fraud in 2021, according to the Canadian Anti-Fraud Centre. With so many car loan options on the market, how can you tell if a provider is legitimate?
As a starting point, you can check out the list of providers below with our reasons for why they’re legitimate. Plus, learn about common car loan schemes and how to avoid them.
Car loan provider | Key features | How they are legit | |
---|---|---|---|
![]() | CarsFast allows you to pre-qualify for loans from multiple lenders and compare your rates. You can apply with bad credit. Interest rates: 4.90% - 29.90% |
| Go to site |
![]() | Loans Canada is a broker with the largest lender network in Canada. Get matched with lenders that want to finance your car loan. Interest rates: 0% - 31.99% |
| Go to site |
![]() | Coast Capital is a credit union that offers car loans across Canada, except Quebec and Saskatchewan. A membership is not required. Interest rates: Varies |
| Go to site |
![]() | Canada Auto Finance is a free car loan matching service, connecting auto loan applicants with local dealers. Interest rates: 4.90% - 29.95% |
| Go to site |
![]() | Clutch is an online dealer. Browse 2,000+ cars and have your car delivered to your door. “Test Own” for 10 days/750 km. Interest rates: From 3.90% |
| |
![]() | CarDoor is an online car dealer that serves the Greater Toronto Area. CarDoor has a 14-day money back guarantee and a generous 60-day exchange program. |
| |
![]() | Splash offers car financing to borrowers with poor credit, no credit and those going through bankruptcy. Interest rates: 9.90% - 29.90% |
| Go to site |
![]() | Carloans411 is an easy-to-use online platform that lets you get financing from a dealership near you. Get matched with a loan provider. Interest rates: 1.90% - 19.99% |
| Go to site |
![]() | LoanConnect's search engine shows lenders with highest likeliness of positive results. Interest rates: 9.90% - 46.96% |
| Go to site |
![]() | Canada Drives has a large inventory of vehicles so your car shopping experience can be done completely online. It also offers car financing. Interest rates: 4.75% - 29.99% |
| Go to site |
![]() | Auto Loan Providers is an Ontario-only lender lets you choose a vehicle type first, then helps you determine how much loan you can afford before car shopping. Interest rates: 3.99% - 29.99% |
| Read review |
![]() | With Auto Credit Deals, apply in 3 minutes and find out how much you qualify for. Browse vehicles within your budget. Interest rates: Not specified |
| Read review |
![]() | Driving with Steve is partnered with certified dealers across Canada. Find out first how much you can borrow, then browse cars within that range. Interest rates: 0% to 29.99% |
| Read review |
![]() | 401 Auto Financing considers applicants who are on ODSP, in a consumer proposal or have bad credit. Interest rates: From 0% |
| Read review |
See our A-to-Z list of car loan provider reviews
Some dealerships or sketchy car loan providers are just interested making money, even if it’s at your expense. If you’re not working with one of our trusted providers listed in the table above, keep an eye out for these car loan scams.
Yo-yo financing (or spot delivery scam) is a tactic used by many dealers to get you into a new car and off the lot the same day you walk in — whether your loan is approved or not. If the dealer can’t sell your loan off for a profit, you’ll be informed that the financing has fallen through. You’ll either need to renegotiate your terms or return the car.
If you’ve settled on a monthly payment plan of $250, the dealer may call you up after a week and tell you that you’ll need to pay $350 in order to get financed, otherwise your new car will be repossessed. The dealer might claim that it’s already sold your trade in or it will call the police if the car isn’t returned immediately.
As with other types of loans, there’s no such thing as guaranteed approval, but many dealers will use this to get buyers on the lot. They’ll run your credit, and chances are you’ll be approved — for outrageous terms.
Why do dealers run these car loan scams? There’s a chance that a buyer has decent credit for a loan at a moderate, yet affordable rate. And some borrowers may need a car regardless of the terms they’re offered.
No matter if you get your financing through a dealer or an independent lender, upfront fees are a bad sign. Lenders may encourage or coerce borrowers to pay a fee before the application is processed or before the funds are distributed. Don’t be fooled — these car loan scams are an attempt to get you to pay, regardless if you get the loan or not.
Upfront fee scams typically happen online where you can get lured into paying the fee and then never hear from the lender again.
Some call it a scam, some may just see it as a dealer trying to rip you off, but either way, packing payments change the price you pay for your loan.
A dealer encourages a buyer to focus on the monthly payment, not the total cost of the vehicle, and then packs on unnecessary extras that only change the monthly payment by $10 or $20. Over the life of a multi-year loan, however, that $10 or $20 becomes thousands of dollars.
A loan modification scam happens after a buyer takes out a loan and struggles to make payments. Seeking relief, you may turn to businesses that claim to negotiate with the lender for a small upfront fee, usually a few hundred dollars.
As with most things, if it sounds too good to be true, it likely is. Victims of loan modification car loan scams are often told to stop making payments to their lender because the loan modification company is going to take care of negotiations. This never happens, and the victim can’t get in contact with the company after paying for the service.
If a borrower doesn’t qualify for financing on their own, a dealership may suggest they get a friend or family member to cosign the loan agreement. Getting a cosigner for a loan is a legitimate practice, but the scam happens when the dealership removes the original buyer from the contract, and the cosigner is on the hook to make all the payments as the primary borrower. They do this by making the original buyer and the cosigner sign multiple sets of paperwork.
If you’re also on the market for a home, keep these scams in mind. Loan modification scams are particularly common with mortgages as well, according to the FTC. Whether you’re buying a car or a home, be wary of advanced fees
Although not technically considered car loan scams, some tactics dealers use can cheat you out of your money.
A reliable way to avoid being scammed or ripped off by a dealer is to arrange your own financing and to know your credit score.
You might be a victim of car loan scams in one of the following situations:
It’s always best to educate yourself and avoid a scam altogether. However, if you think you’ve been the victim of a scam, you have a few options:
Possibly, if your lender has clearly broken the law. Reach out to a lawyer for a consultation to find out if you have a case.
Generally, you have 2 options when it comes to law suits: You can either join other victims in a class-action lawsuit or sue on your own. If you decide to go solo, be prepared for some steep legal fees.
Check out details from our trusted car loan providers in the table below, like loan terms, rates and credit score requirements. You can compare two or more providers side-by-side by checking the compare box beneath each provider you’re interested in.
Your best defence against scams is knowing what to look for before visiting a dealership. Many common dealer scams target buyers with poor or bad credit scores, but that doesn’t mean you have to settle. Our comparison of the best car loans in Canada can help you sift through your options and find the best deal for you.
Buy cars online and get them delivered straight to your doorstep with this car purchasing and financing platform.
Compare the features of 8 online car dealers in Canada, including inventory sizes, serviced provinces and trial periods.
Find out how to sell your car in BC privately or to a dealer.
Carvana is a popular online car-buying platform in the US, but it’s currently not available in Canada. Here are 5 Carvana equivalents in Canada.
Here’s a look at the 7 best sites to sell a car online in Canada to get the highest offer.
Need a no-hassle car loan with quick approval? Get in-house or standalone financing with Ontario dealer The Loan Arranger.
East Coast Financing is a dealer serving Atlantic Canada. Apply for a used car loan with good or bad credit, quick approval and no requirements for a down payment.
Browse fair credit car loans in Canada. Apply online and get pre-approved within minutes.
Shop with Ontario dealer 401 Auto and get in-house or private sale financing with good or bad credit.
Save money and time when you sell your car to a local dealer in Ontario with this hassle-free car-selling platform.