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Compare car title loans

Borrow funds using your vehicle as collateral.

Auto title loans are loans taken out against the title of your car, giving you access to as much as 50% of the value of your car in funding. Our guide below explains how an auto title loan works, the features and eligibility criteria you’ll need to consider when you apply and the pros and cons.

Compare car title loans

Loan providerInterest rateLoan amountLoan term
Loans Canada6.99% - 29.99%$500–$35,0004 - 96 months
Loans Canada6.99% - 46.96%$500–$50,0003 - 120 months
Title Loans Online14% - 49% annual$3,000–$25,00024 - 60 months
Car Title Loans CanadaNot disclosedUp to $25,000Up to 60 months
Snap Car Cash7.5% - 49.1%$1,000–$50,00024–60 months
Fast Access Financial15.75% - 58.99%Up to $10,00012 - 36 months

How do car title loans work?

Car title loans use your vehicle as collateral to secure your loan. You can still drive your car while you’re repaying the loan, but if you don’t make regular payments on your auto title loan, your vehicle can be repossessed and sold by your lender to recoup costs. You will generally have a few months to a few years to repay your auto title loan.

Common features of car title loans in Canada

  • Loan amount. You’ll usually be offered 25–50% of the value of the car. Amounts can be up to $50,000 with some lenders, though they usually average between $100 and $10,000 depending on the value of your car.
  • Eligibility requirements. You’ll typically need to be the sole owner and have a car in good to excellent condition. The car should have a wholesale value that’s over a few thousand dollars, with no liens, major damage or accidents.
  • Funding times. It’s easy to get quick car title loans in Canada. The average funding time is within a few hours to 1 day from the time that you submit your application and get an inspection. It could take longer with online car title loans.
  • Car title requirements. Lenders will determine your car title by looking at your registration/insurance document and, in some cases, a bill of sale. They will use these documents to check that you’re the sole owner of your vehicle.
  • Inspection requirements. Most lenders will require you to bring your vehicle in to get an inspection in person. Lenders offering online car title loans may allow you to upload your inspection and photos of your car or send them in by mail.

Is a vehicle title loan right for me?

Vehicle title loans might be a high-cost financing option, but they can make sense in the following situations:

  • When you need money fast. As long as you have your documents in place, you can get quick car title loans in Canada. The usual turnaround time is a few hours to a few days from the time of application/inspection.
  • When you have poor credit. Vehicle title loan providers typically accept all credit types. Some lenders even offer car title loans with no credit check.
  • When you need a larger loan. Vehicle title loans can sometimes run as high as $50,000, depending on the value of your vehicle and where you live.

How will a car title loan affect my credit?

Auto title loans typically have little to no effect on your credit score if you repay your loan on time. That’s because vehicle title loan providers typically don’t report on-time repayments to the credit bureaus, which means your credit score won’t increase.

However, your credit score may go down if you make late payments or miss payments altogether. Unlike with unsecured loans, at a certain point, your lender will step in and repossess your vehicle to cover the cost of your loan if you continue to default.

What amount can I borrow with a title loan?

How much you can borrow depends on how much your vehicle is worth, who your lender is and where you live.

  • How much your vehicle is worth. The average you can borrow is between 25% and 50% of your car’s resale value (not the original price you paid), though some lenders may offer as much as 120%. You can figure out your car’s resale value using sites like Kelley Blue Book or CARFAX.
  • Who your lender is. Every lender has its own minimum and maximum loan amount. Amounts can start as low as $100 and reach as high as $50,000, though maximums of $5,000 to $10,000 seem to be the norm.
  • Your province or territory. Title loans are provincially regulated and some provinces/territories have limits on how much you can borrow, which can affect the minimum and maximum amount your lender offers.

How much does a title loan cost?

The amount you’ll pay for your car title loan will depend on what type of loan you get and what APR (a combination of interest rate plus fees) you agree to pay.

  • Single-payment title loans. These loans are usually due in full within 30 days. They tend to come with a flat fee rather than a set interest rate. Lenders will often charge the maximum APR for these types of loans, which is 60%. These are often car title loans with no credit check required.
  • Installment title loans. You’ll usually repay these loans over 3 - 60 months. You’ll often pay a set interest rate (around 20% to 30%) as well as any applicable fees. APRs for vehicle title loans typically range between 9% and 49%, though they can reach as high as 60%.

Common fees you’ll pay for car title loans in Canada

In addition to interest rates, car title loan providers may charge the following fees:

  • Vehicle evaluation fee. This is an appraisal fee your lender may charge to determine the value of your car.
  • Search fees. Your lender may charge a fee to verify that your car hasn’t been in any accidents or to check that there aren’t any liens on your car.
  • Administration fees. The lender charges this fee to set up your account in some cases.
  • Registration fee. The lender may charge you to put a lien on your car.
  • Roll-over fee. You’ll pay this fee if you extend your loan term.
  • Prepayment fee. You’ll pay a penalty if you prepay your loan early with some lenders.
  • Installation fee. If applicable, you may need to pay for your lender to install a GPS tracker on your car.

Not all lenders advertise rates and fees online, especially if they aren’t legally required to do so. You might have to call ahead or visit a storefront in person to learn the costs you can expect to pay.

How to get a car title loan

Follow these steps to get a car title loan, whether you apply online or in person.

  1. Compare lenders. Look at features like APRs, how much you can borrow, where the lender is located and the eligibility requirements to find the right fit for you. You’ll also want to figure out if you want to apply for online car title loans or with a local in-person lender.
  2. Fill out the application. Once you’ve narrowed down your search, proceed with the application. Typically, you’ll need your car’s make, model and condition as well as your contact information and your employment and income details.
  3. Provide additional documentation. You may need to provide additional documents to verify your application, including a copy of your driver’s licence, proof of income like a recent pay stub or bank statement, proof of residency like a recent utility bill or lease and proof of insurance.
  4. Upload photos and your car title (if applying online). Upload pictures of your vehicle from various angles based on your lender’s specifications. You’ll also need to upload your car title or send in the original by mail if this is required by your lender (which can slow down the loan process).
  5. Bring your car in for inspection (if applying in person). You’ll need to bring your car in for your lender to inspect to get a proper valuation. You’ll also be required to provide your car title in person at this time.
  6. Agree to your loan and sign your document. Agree to your loan terms (including term length, APR and amount). Make sure you look for hidden fees and read the fine print before you sign off on your loan document.
  7. Receive your funds. Lenders offering online car title loans will send funds to your bank account as soon as the next business day. In-person lenders may pay you on the spot or send funds once you’ve brought your vehicle in for appraisal.

Eligibility requirements for quick car title loans in Canada

Before you apply, make sure you meet the lender’s eligibility requirements and have the necessary documentation to verify these details. While the criteria differ from lender to lender, you’ll likely need to meet these requirements to qualify:

Benefits of auto title loans

  • Easy to qualify. Simply fill out an application and show proof that you own your vehicle, it’s in decent shape and you don’t have any outstanding liens on it. You may also have to meet other eligibility requirements, depending on the lender, but auto title loans are generally quite easy to qualify for.
  • Receive your funds quickly. If you apply in person at a physical location, you can generally receive your approved funds almost as soon as you accept the loan’s contract. With online car title loans, lenders can transfer funds into your bank account by the next business day.
  • Bad credit is OK. Since you’re providing collateral in the form of your vehicle’s title, you don’t have to have a good credit score. Some lenders even offer car title loans with no credit check.

Drawbacks of auto title loans

  • Possibility of losing your car. If you aren’t able to pay back your initial loan plus the interest it accrues, the lender has the right to repossess your vehicle and sell it off to repay your loan.
  • High cost. APRs can reach as high as 60% with car title loans in Canada. You’ll need to do your homework and compare multiple lenders to find a car title loan provider that offers reasonable rates and minimal fees.
  • Few online car title loan providers. There are only a few online car title loan providers. They are often more convenient than in-person loans, but it can also be difficult to tell which of these online lenders are trustworthy.

Watch out for no-inspection title loans

Some online car title loans might advertise that you don’t need to provide an inspection to qualify for a car title loan. Be wary of these lenders since they often offer loans with less favourable rates and terms. You’ll almost always be required to provide proof of an inspection. If a lender skips this step, it could also be a sign of a short-term loan scam or a predatory lender.

    How to compare vehicle title loans

    Consider these factors when you’re comparing auto title loans:

    Can I apply for a title loan with recreational vehicles?

    If you own other vehicles, such as a motorcycle, truck, boat or recreational vehicle (RV), you can also apply for vehicle title loans using these assets to back your loan. They’ll work in the same way – you can take out a loan using your vehicle’s title as collateral and you can still drive your vehicle while you’re paying off your loan.

    You may find a few key differences between traditional auto title loans and title loans for recreational vehicles and motorcycles:

    • Larger amounts are available. Boats, yachts, trucks and RVs usually have a higher resale value than a car. Because of this price disparity, you might be able to secure a larger loan.
    • It takes longer to get appraised. Earmark extra time for an appraisal if you’re applying for a title loan with your boat, yacht, truck or RV. This is because getting these vehicles inspected and appraised may be harder to do than driving your car to the lender or inspection centre.

    Title loan alternatives

    Title loans are a high-cost type of financing and come with several risks, including losing your car if you default or getting trapped in a cycle of debt. If you often need small-dollar loans, consider looking into local resources that can help cut back on basic expenses.

    Alternatives between $100 and $1,500

    • Payday loans. Payday loans in Canada work a lot like a single-payment title loan but don’t require collateral. However, they tend to come with APRs that are easily over 390%. Avoid them wherever more affordable options are available.
    • Credit card cash advance. If you already have a credit card and need money today, you can withdraw funds immediately from an ATM (up to your available credit limit). You’ll typically pay lower APRs than with a title loan but beware of your card’s cash advance fee.

    Alternatives between $500 and $15,000

    • Installment loans. Installment loans are similar to title loans in that they have longer repayment terms, but you don’t have to put your car up for collateral. But like payday loans, these tend to be slightly more expensive than title loans.
    • Friends and family. Though it can be difficult to ask, your friends and family might be willing to help you out. You can even find services to draw up a legally binding contract.

    Frequently asked questions

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