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iA Auto Finance review
iA Auto Finance provides financing through partnered dealerships with interest rates starting at 8.99%.
Borrowers may qualify for a rate-reducing loan, which reduces your loan’s interest rate after 12 consecutive months of making payments. This perk comes with certain conditions, so be sure that you can meet them before signing on the dotted line. Otherwise, you may end up with a car loan that costs more than you anticipated.
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$50,000
Max. Loan Amount
N/A
Min. Credit Score
Please note: All information about iA Auto Finance has been collected independently by Finder and this product is not available through this site.
30-second take
- Consider iA Auto Finance if you’re interested in its rate-reducing loan. This loan reduces your interest by 10% of your current interest rate each year if you stay up to date with loan repayments for 12 months and adhere to all the requirements of the loan agreement.
- Pick something else if you prefer to apply for financing on your own before vehicle shopping or if your dealership isn’t partnered with iA. iA provides financing through dealers only.
What should I know about iA Auto Finance?
If you’re shopping for a vehicle and auto loan at a dealership, there’s a good chance your dealer may submit your loan application to iA Auto Finance among other lenders. iA Auto Finance is a subprime B2B auto finance company that provides auto financing through dealers only, so consumers can’t apply directly to this lender. Because of this set-up, consumers can’t see detailed information on interest rate ranges, loan amounts and loan types they may qualify for until they apply.
Reduce your rate every 12 months
iA’s shining feature is its Rate Reducing Loan, which allows borrowers to pay off their loan faster, reduce their interest rate each year and rebuild their credit in the process. However, you only qualify if you meet certain requirements. So if you fail to meet these requirements and your car loan has a high interest rate, you could end up with a loan that costs more than you anticipated.
How rate reduction works with iA Auto Finance
Existing iA Auto Finance borrowers may qualify for the lender’s rate-reduction loan, which cuts the interest rate by 10% of the current interest rate each year.
iA Auto Finance says you may qualify for a rate reduction 12 months into the loan term if you’ve met its requirements, namely making monthly payments on time for 12 months straight. If you miss a payment or miss the mark on other stipulations, iA will reset the clock to month 1. You can try for the rate reduction again if you meet all the requirements over the next calendar year.The other requirements include ensuring no payments are returned for any reason, keeping your vehicle accident-free and keeping iA up to date with your insurance policy. Before signing the contract, understand all the requirements to get your rate reduction.
Do I qualify?
While the eligibility criteria aren’t disclosed online, you’ll need to meet the following basic requirement:
- Be a Canadian resident, with proof of address.
- Provide proof you’re the age of majority in your region, such as a valid driver’s licence.
- Have a valid Canadian bank account to make payments on time.
Details on minimum credit score and monthly income requirements aren’t disclosed online. You’ll need to consult with your dealership to ask for these details.
What provinces and territories are iA car loans available in?
iA says it’s partnered with dealerships across Canada, but its reach may vary in smaller towns compared to major cities.
What are the benefits of an iA Auto Finance car loan?
Borrowing via iA Auto Finance comes with a slate of perks, including the following:
- Dealer-led application. Receive help from your dealership with the auto loan application process. They’ll submit your application to various lenders, including iA, to see where you qualify and under what terms.
- Flexibility with auto loans. You can get a loan without a down payment, provide a trade-in to apply as a credit towards your purchase and choose from terms that go up to as long as 84 months.
- Rate-reduction loan. Existing clients who stay on top of their loan repayments for 12 consecutive months can apply for an interest rate reduction, driving down the overall cost of their loan.
- Interest rates starting at 8.99%. iA says its rates for auto financing start as low as 8.99%, which is pretty competitive. If your credit isn’t in great shape, anticipate much higher interest rates though.
- Manage your car loan online. You can manage your account details online, make payments and live chat with a customer service representative.
What to watch out for
Borrowers should take note of the following red flags:
- Potential for steep interest rates. Interest rate ranges aren’t disclosed online, but they will vary depending on factors such as the dealer you’re working with, your credit score and your income. It’s unclear how high APRs may be with iA.
- Potential for additional fees. You may encounter additional fees and extra costs as you go through the loan process with your dealer, such as origination fees (a fee to process your loan) and dealership fees. Watch out for these charges because they can drive up the cost of your loan.
- Only available via partnered dealers. If you’re interested in securing financing via iA Auto Finance, you must check with your dealer first to make sure it’s partnered with this lender. As always, it’s worth requesting quotes from a few options before you make a final decision.
- Not direct to consumers. While other lenders allow borrowers to apply and get pre-approved on their own before auto shopping, iA provides financing through dealers only.
- Negative reviews online. iA Auto Finance has received some negative reviews online. Reviewers have mentioned repayment issues, poor customer service and high NSF fees to the tune of $100.
Compare other subprime car loans
Before signing a car loan with a dealership, consider comparing it with other offers so you know whether you’re getting the best deal.
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Is iA Auto Finance legitimate?
It is. iA Auto Finance is part of the iA Financial Group, one of the largest insurance and wealth management groups in Canada, with reach into the United States. iA was founded in 1892 and is listed under the Toronto Stock Exchange as IAG (common shares) and IAF (preferred shares).
It provides individual insurance, wealth management and group insurance as well as auto and home financing. The larger iA Financial Group says it manages over 4 million clients as of December 2020.
How do I apply for an iA Auto Finance car loan?
iA provides auto financing through partnered dealers only, so you’ll need to apply via the local dealership where you’re car-shopping. iA says that once you’ve found the car you’d like to purchase, work with your dealer to submit your auto financing application. From there, your dealer will submit your application to various lenders, including iA, to see if you qualify and under what terms.
Check with your dealer to see if iA has requirements for a minimum credit score and monthly income to make sure you fit the criteria.
What documents do I need to apply?
While iA doesn’t disclose which documents you’ll need for the application, these documents are typically required to verify your identity and financial information:
- Proof of identity via a valid driver’s licence and other forms of government-issued ID.
- Employment and income verification via pay stubs, bank statements, CRA notice of assessments or benefits letters.
- A void cheque or direct deposit form for the bank account you want your car payments to come from.
- A copy of your car insurance faxed or emailed to your dealer.
I got the iA Auto Finance car loan. Now what?
Before you’ve secured your financing to purchase your car, read through the loan contract thoroughly to make sure you understand what you’re committing to. Pay attention to the monthly loan repayment amount, due date, interest rate you’ve qualified for and the overall loan term.
With these details in hand, make sure to stay on top of your loan repayments. If you’re diligent without missing any due dates, you may qualify for an interest rate reduction at each anniversary of your loan. This is a perk worth aiming for because you could save thousands in interest over the lifetime of your loan. The onus is on you to email or call iA to get your rate reduction.
