Loans Canada Car Loans Review

• Best for customers who want to compare car loan lenders with one simple and straightforward application.

• Pick something else if you would rather source your own car loan quotes or you want to borrow less than $500.

Expert review

Loans Canada lets you compare lenders with one simple application using its innovative online car loans platform. All you need to do is fill out some basic personal information along with details about your current financial situation. You’ll then be matched to a curated list of providers willing to lend you money.

Using this type of platform lets you find the best terms and interest rates for your car loan based on your unique set of needs and budget. The minimum you can borrow is $500, and you’ll pay between 0% and 29.99% interest on your loan when you sign up. Terms can last between 3 months and 8 years, depending on your preferences and personal circumstances.

First, do I qualify?

To get financing from Loans Canada, you’ll need to be at least the age of majority in your province and have a valid Social Insurance Number. You’ll also need to show that you’re a Canadian citizen or resident with a steady income and regular employment. This means being employed at the same job for at least 3 months and making a minimum of $1800 per month.

In order to qualify for a Loans Canada Car Loans, you may also be required to consent to a credit check. Whatever vehicle you purchase will also be used as collateral to secure your loan. This means it can be repossessed if you fail to make your monthly repayments.

What makes Loans Canada Car Loans unique?

Loans Canada Car Loans are unique because Loans Canada is not a direct lender but instead works to set you up with one. It starts by compiling your personal information and sending it off to a number of different lenders who will do their best to woo you into a loan agreement.

This means that you’ll get the best rates and terms for your loan simply because these lenders will have to compete for your business. Loans Canada Car Loans are also unique because they’re very easy to apply for, and you may be able to qualify even if you have bad credit.

What types of car loans does Loans Canada offer?

You’ll be able to apply for a number of different car loans with Loans Canada Car Loans. The type you can qualify for will depend on which lender you go with:

• New or used car loans. You can use the money you borrow to purchase a new or used vehicle from a car dealership.
• Bad credit car loans. You’ll be able to qualify for a car loan even if you have a poor credit score or a negative mark on your credit report.
• 0% APR loans. It’s possible to get a 0% APR loan if you fulfill certain conditions, such as having a good credit score.
• No down payment loans. You’ll likely be able to qualify for a loan with no down payment if you have an adequate income and stable job history.

What are the benefits of a Loans Canada Car Loans?

• Easy application. You can apply for a loan from the comfort of your own home in a matter of minutes.
• More choice. It’s easy to compare quotes from multiple lenders and you’ll only be matched with lenders who are willing to finance you.
• Free service. Loans Canada is paid by the lenders that offer loans on the site so the service is free of charge.
• 0% APR financing. You may be eligible for 0% APR financing if you meet certain criteria, such as having a decent credit score.
• Long terms. It’s possible to qualify for a term lasting up to eight years if you need help to bring down your monthly payments and don’t mind paying more in interest.
• Easy to qualify. You should qualify as long as you’re 18+ years old, live in Canada and have stable employment (with at least $1800 monthly income).
• Bad credit doesn’t matter. You should be able to qualify for some loans even if you have bad credit or no credit history.

What to watch out for

• Limited providers. You’ll only be able to get quotes from affiliated providers with this service (which means you could miss out on great rates elsewhere).
• Personal information required. You’ll have to input sensitive information online that will be forwarded to the lenders you match with.
• No online quotes. You’ll be required to speak to a customer service representative over the phone to negotiate the terms for your Loans Canada Car Loans.
• Computer-based. You’ll need to be a little bit tech-savvy to navigate the online application and document upload process.
• Fewer options for bad credit. There are typically fewer financing options available for borrowers with bad or no credit.
• Non-sufficient funds fee. In the event of a missed payment, an insufficient funds fee of approximately $45 may be charged (depending on the lender).

How do I apply?

All you need to do to get started with a Loans Canada Car Loans is fill in an online application. To do this, you’ll need to input a number of personal details such as your name, address, phone number, job title and income. You’ll also need to show proof of ID to verify your identity when you sign up for a loan.

From there, you’ll be contacted by a customer service agent to discuss your eligibility, along with rates and terms. You’ll then finalize your loan with the lender you choose to work with. At this point, you’ll make repayments to that lender and they will handle all aspects of your financing (which means your relationship with Loans Canada will end).

What documents do I need to apply?

It’s not clear what documents you’ll need to apply. However, you’ll likely need to submit the following paperwork:

• Proof of ID. This can include a government-issued form of ID as well as your Social Insurance Number (SIN).
• Proof of income. You’ll likely have to submit documents such as letters of employment, pay stubs and tax receipts.
• Credit score. You may need to give Loans Canada permission to pull your credit report so that it can assess your creditworthiness.
• Other financial information. You may need other information about your debts and assets to apply for a Loans Canada Car Loans.

I got the loan – now what?

Once you’ve submitted your application to Loans Canada and you’ve been matched with a suitable lender, you’ll start to repay your loan. From there, you’ll arrange a payment schedule and sign up for automatic withdrawals from your bank account to begin to repay your loan. You won’t deal with Loans Canada for any part of this process.

Frequently asked questions

• How long does it take to apply?

  It will take you less than 10 minutes to apply with Loans Canada Car Loans from start to finish. From there, your application will be assessed and you should get a call from all of the lenders who are willing to finance you.

• How much do Loans Canada car loans cost?

  You won’t pay anything to apply for a loan with Loans Canada, but you’ll need to pay interest on whatever amount you borrow. Interest rates can vary based on your credit score, the term of your loan, how much you borrow and which lender you decide to go with.

• Should I get a loan if I have enough money to pay for my vehicle upfront?

  That depends on what else you might need that money for. For example, you might not want to put all of the money in your bank account down on a new vehicle just in case an emergency comes up. That said, you should make sure you aim to get the lowest interest rate possible if you decide to get a loan so that you don’t end up paying thousands of dollars more than you should for your vehicle.

• Am I guaranteed approval for a Loans Canada car loan?

  Not necessarily, no. While Loans Canada will do everything in its power to get you approved, there are certain circumstances where you won’t be able to borrow money. These include if you’re in bankruptcy, if you’re not a Canadian citizen/permanent resident or if you don’t meet the age of majority in your province (which is 18 or 19 years old, depending on where you live).

• Can I cancel or prepay my car loan without fees?

  That will likely depend on the lender you choose. Some lenders allow for prepayment with no penalties. Others will charge you for putting a lump sum down on your loan unexpectedly or for cancelling your loan altogether.