How to apply for online car loans

Compare lenders then follow these steps to apply. Many lenders offer same-day approval.

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Applying for a car loan online allows you to compare lenders and speed through the application process. But to avoid hurting your credit score, only submit a full application to the lender you’re most interested in.

Car Loans Canada

  • Min. Loan Amount: $7,500
  • Max. Loan Amount: $55,000
  • Interest Rate: 3.99% to 29.90%
  • Loan Term: 12-84 months
  • $0 down options available
  • All credit scores considered
  • Quick and simple financing
  • Safe and secure loans

Car Loans Canada

Search thousands of vehicles online, including $0 down options, from dealers across the country and get matched with affordable financing options. Auto loans are also available to those with bad credit, consumer proposals and bankruptcies to help rebuild credit.

  • Min. Loan Amount: $7,500
  • Max. Loan Amount: $55,000
  • Interest Rate: 3.99% to 29.90%
  • Loan Term: 12-84 months
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How do I apply for a car loan online?

To apply for a loan online:

  • Fill out the online application. This will likely include giving the lender information about yourself, your finances, your credit and the car or loan amount you’re interested in. Be honest and make sure you provide accurate answers to avoid any trouble later on.
  • Gather supporting documentation. You may be able to upload your documentation directly to the loan application, or you may need to fax or email them in.
  • Wait for the lender’s decision. Once you’ve submitted your application and supporting documents, your lender will either notify you of its decision or ask for further information. In many cases, lenders can give you approval or preapproval almost instantly after submitting an application while supporting documents and other requested information are still pending.
  • Review and sign the contract. If approved, your lender will send you a loan contract for review. This contract contains vital information including your loan term, repayment schedule and interest rate, so take your time reviewing it. After reviewing, if you’re comfortable with the terms, you’ll sign the contract and return it to your lender, who will then distribute the funds to the vehicle seller.

What do I need to apply for a car loan online?

The information and documentation you need to complete the application will vary by lender. But in general, you should have the following on hand:

  • Personal information. This includes information such as your driver’s license number, contact information, income and residential status.
  • Employment information. This includes details regarding your employment history to help your lender assess your stability as an applicant.
  • Requested loan details. You’ll need to provide your requested loan amount along with your preferred method of repayment.
  • Driver’s license or certified ID. Your driver’s license or other valid identification is used as proof of your current address and to help your lender conduct a credit check. If your credit history is an obstacle, it’s possible to get apply for a no credit check car loan, but this also has its drawbacks.
  • Proof of income. These include bank statements, pay stubs, financial statements, rental income statements or anything else serving as proof of the income declared on your application.
  • Proof of insurance. Depending on the lender, you may be required to provide proof of insurance on the car you plan to purchase.
  • Vehicle details. Some lenders may ask you for information about the vehicle you’re planning to buy — including the make and model — as well as the seller’s asking price, name of business and address.

Compare a range of online car loans

Name Product Min. Loan Amount Interest Rate Fees Loan Term Min. Credit Score
Car Loans Canada
$7,500
3.99% to 29.90%
Varies by lender, loan type and province
12-84 months
300
Search thousands of vehicles online, including $0 down options, from dealers across the country and get matched with affordable financing options. Auto loans are also available to those with bad credit, consumer proposals and bankruptcies to help rebuild credit.
CarsFast Car Loans
$500
4.90% to 29.90%
Varies by lender, loan type and province
12 months - 8 years
300
Browse thousands of vehicles from dealers across Canada and get matched with financing that meets your needs. Apply online to purchase a new or used vehicle and get the vehicle delivered to your door.
LoanConnect Car Loans
$500
1.90% to 46.96%
Varies by lender, loan type and province
6-60 months
550
Get access to 25+ lenders through LoanConnect's brokerage. Receive pre-approval in as fast as 60 seconds and get your funds in as little as 24 hours.
Carloans411 Car Loans
$500
1.90% to 19.99%
Varies
Up to 84 months
300
Get connected with suitable lenders through CarLoans411. Finance your next car, van or truck with loans available in amounts from $500 to $35,000. Check eligibility for this loan through LoanConnect.
Auto Arriba Car Loans
$3,500
8.99% to 29.50%
Contract fee of $499.00
6-84 months
N/A
Auto Arriba offers car loans starting at $3,500 up to $100,000, with as little as a 30 minute loan turnaround time. On a limited number of approved loans, Auto Arriba is currently offering a rebate of the amount of your first scheduled payment 30 days after it has been processed up to a maximum of $500.
Fairstone Secured Personal Loan
$5,000
19.99% to 23.99%
Varies by province
3-10 years
560
Fairstone offers secured personal loans up to $35,000.
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Pros and cons of applying for an online car loan

Pros

  • Quick process. Many lenders can come to a decision on the same day you apply and, in some cases, you can get funds disbursed in as little as one day.
  • More options to choose from. You’re not restricted to just banks or credit unions when applying for a car loan online, giving you a wider selection of lenders to choose from.
  • Convenience. Applying for a car loan online is usually more convenient than having to apply in person at a dealership or bank.

Cons

  • Easy to over-apply. Lenders may deny your application if they see you’ve been applying for too many loans within a short period of time. Doing this also lowers your credit score.
  • Short preapproval window. Keep in mind that any preapproval you get from a lender will likely expire in 30 days.
  • May come across shady lenders. When considering your online car loan options, it’s easy to come across a lender you’re not familiar with. Research the lender’s website security, business practices and borrower reviews to make sure it’s legit before applying.

What should I avoid?

When applying for any car loan — online or in person — try to avoid the following:

  • Getting into too much debt. Since car loans involve a lengthy financial commitment, make sure you can afford the repayments required by your lender.
  • Getting mixed up with shady sellers. Avoid any seller that tells you to falsify information on your loan application. Not only is it illegal, but you carry all the risk while the seller carries none. In addition, make sure you’re fully aware of the car’s condition before buying it. Have any used car you’re interested in inspected by a mechanic not connected to the seller.

Bottom line

Applying for a car loan online is easy, but that doesn’t mean it’s a good idea to apply for multiple loans at once. Instead, compare your options before getting started and only apply to the lender you’re most interested in.

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