Online car-buying platforms are gaining popularity, with Carvana leading the way in the US. While there isn’t a Carvana Canada yet, here’s a closer look at 5 Canadian equivalents. Canadians can browse through a wide inventory of vehicles, make their purchase online and have their car delivered right to their front door with these easy-to-use online car-buying platforms.
1. Clutch
Available in Ontario and Nova Scotia only
Clutch provides a wide inventory of more than 700 used cars that shoppers can browse through online, so you won’t have to visit a dealership. It also provides delivery straight to your driveway so you can take your new wheels for a spin during a “test to own” trial period of 10 days/750 km.
Who it’s best for: Car buyers who want a seamless online car-buying experience with the option to apply for financing through the platform. You can also sell or trade in your car.
Where it’s available: Ontario and Nova Scotia only
Transparent about kilometres, damage and vehicle issues
Offers financing for good and fair credit borrowers
Accepts cars with a loan on it if you’re selling
Cons
Higher price points with newer used cars
No test drive option before buying
Prep fees if you’re in Halifax
Higher warranty coverage price points
2. Car Deal Canada
Car Deal Canada is another online platform that matches you with a car and financing offer based on your unique situation. It is based in Edmonton, Alberta.
Who it’s best for: Shoppers across Canada who want a one-stop shop for financing, purchasing a vehicle and having it delivered to you.
Where it’s available: All provinces
Pros
20,000 cars available
Free delivery anywhere in all provinces
Financing options for all credit
Quick approvals
Cons
High rates for bad credit
You’re limited to Car Deal Canada’s dealership partners
3. Dealerhop
Based in North Vancouver, BC, Dealerhop is an online platform where you can buy, trade in or sell a car online. To buy a car, simply fill out its application and then Dealerhop will match you with car and financing solutions. You can get a new or used car through this platform.
Who it’s best for: People who want to shop online for a new or used car.
Where it’s available: British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland only
Pros
New and used cars available
Bad credit is okay
Delivery to your door
Partnered with financial institutions for financing
Cons
High rates for bad credit
You’re limited to the dealerships Dealerhop is partnered with
Like its competitors, CarDoor brings the car-shopping experience completely online. Look through CarDoor‘s inventory of hundreds of used cars, do a 360-degree walk around and read through the vehicle’s key features completely online. Once you’ve decided on a car you like, click on “Home Test Drive” to set up a delivery date and to finalize your purchase, including whether you need financing.
After your car is delivered, you have a full money back guarantee for 14 days/750 km. If you change your mind during this time frame, CarDoor will pick up the vehicle and issue a refund.
Who it’s best for: Car buyers prioritizing longer-term warranties, longer return and exchange periods, and solid customer service. You can also sell or trade in your car.
Newer used vehicles on offer with higher price tags
No test drive option before buying
Smaller inventory of options to choose from
Only available in Ontario
5. Canada Drives
With Canada Drives, the entire car-buying process is done online, just like Carvana. Browse through Canada Drives‘ inventory of used cars on its platform, sorting vehicles by year, make, model, colour, kilometres and more.
You can make your purchase online, organize your payment plan and then arrange a date for delivering your vehicle to your front door. After your car is delivered, you have a full money back guarantee within 7 days/500 km.
Who it’s best for: Great for car buyers who want a quick delivery and free 30 days/1,500 km warranty. You can also sell or trade in your car.
Where it’s available: Ontario, British Columbia, Alberta and Saskatchewan only
Pros
Easy-to-use platform
Same-day delivery (where applicable)
Free 30 days/1,500 km warranty, return policy of 7 days/500 km
Upfront about vehicle specs (pricing, kilometres etc)
Apply for financing before shopping
Accepts cars with a loan on it if you’re selling
Cons
Newer used vehicles with higher price points
Not available across Canada
No test drive option before buying
Are Canadians using sites like Carvana to buy a car?
Businesses like Carvana in the US and Clutch in Canada are bringing the car-buying process into the twenty-first century, allowing customers to do everything online from comparison shopping and choosing a warranty to applying for financing and trading in a vehicle. And it seems like Canadians are slowly warming up to the idea.
According to a November 2022 survey from CARFAX Canada, 1 in 10 Canadians say they want to buy their next car completely online and have it delivered. But, interestingly, 1 in 3 Canadians say they can see themselves buying a car entirely online at some point in the future, even if it’s not now.
That’s not surprising considering that a Clutch survey conducted by Ipsos in 2022 showed that 84% of Canadians want the car-buying process to be easier than it currently is, and 76% want to spend less time visiting dealerships to shop for a car.
In our increasingly digital age, and with a lot of dissatisfaction around the current car-buying process, it’s not surprising there are so many online car-buying platforms like Carvana being developed in Canada.
How does the buying process work with an online dealer?
As you can tell, there are only slight disparities between these online car-buying platforms. They all allow shoppers to browse vehicles online, play around with payment calculators to help you find the sweet spot for your budget, and make your purchase (including securing financing) completely online. And the best part: they all deliver your purchase right to your front door.
You can count on these steps when you’re working with any of the Carvana equivalents above:
Search online inventory for your dream car.
Start the process by browsing through cars on each competitor’s platform. You can sort vehicles by year, make, model, colour, kilometres and more. You can “favourite” your top picks or place them in a virtual garage, then zero in on the detailed specs for your top choices.
Select the vehicle you want to purchase.
When you’re ready, proceed with your purchase. At this stage, you can even get a quote on your trade-in if you have a vehicle you’d like to sell. You can also apply a down payment or apply for financing.
Arrange delivery or pick up.
Once your payment is sorted out, work with your dealer to select a date and time for your pick-up or delivery to your front door. You’ll need to provide a picture of your driver’s licence and insurance.
Test drive your vehicle.
With your new purchase in your driveway, take your new wheels for a spin for the allocated time provided by the dealer you’re working with. In some cases, that’s 7 days while others allow up to 14 days. If you aren’t happy, make sure you contact your dealer within the designated time frames to set up a pick-up and a refund or exchange.
Carvana is an Arizona-based online car-buying and delivery platform, that is only available to US residents. The platform allows you to shop for a vehicle with 360º inspection, apply for financing, make your purchase and arrange for delivery or pick-up all online from the comfort of home.
No, Carvana is not available in Canada. Currently, Carvana is only available in the US. However, there are several online car-buying platforms in Canada that are similar to Carvana, like Clutch and Canada Drives.
No. Carvana does not ship outside of the US, so it does not ship cars to Canada.
Yes, you can. Canadian online dealers accept trade-ins if you're making a purchase. Simply provide your car's specs to get an estimate on how much each dealer will pay you for your vehicle.
Yes, they sure do. These specific parameters will vary, but they generally include no driving the vehicle beyond a set mileage, no modifications to the vehicle's interior or exterior, no accidents, no involving the vehicle in an encumbrance (such as using it as security on a loan beyond the financing you've set up for it) and no major cosmetic damages to the vehicle.
Carmen Chai is a freelance writer at Finder, specializing in financial products. She is an award-winning Canadian journalist who has lived and reported from major cities such as Vancouver, Toronto, London and Paris. She has reported on personal finance, mortgages, and banking products for nearly a decade.
Compare the pros and cons of buying a car online vs at a dealership, and choose which option suits you best.
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