Compare car title loans

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 provider	Interest rate	Loan amount	Loan term
	5.4% - 29.99%	$500–$35,000	4 - 96 months	Go to site
	6.99% - 46.96%	$100–$50,000	3 - 120 months	Go to site
	14% - 49% annual	$3,000–$25,000	24 - 60 months
	Not disclosed	Up to $25,000	Up to 60 months
	7.5% - 49.1%	$1,000–$50,000	24–60 months
	15.75% - 58.99%	Up to $10,000	12 - 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%.

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:

• Be a Canadian citizen or permanent resident

  Verify your identity with a government-issued photo ID like your driver’s licence or passport. You may also need to prove you’re from the province you’re applying for a loan in.

• Age of majority

  You must be at least 18 years old (or 19 in some provinces).

• Proof of a steady income

  Lenders often ask to see recent pay stubs, bank statements, receipts from benefits or other proof that you can afford to pay back your loan.

• Clear title in your name

  You must provide registration/insurance in your name to prove you own your car. You may also be required to provide a bill of sale or other proof of ownership, depending on the lender.

• Vehicle inspection

  Lenders may ask for a vehicle inspection certificate to make sure your vehicle is in drivable condition.

• No bankruptcy

  Some lenders offer car title loans with no credit check, but you may have trouble qualifying if you’ve gone through bankruptcy in the past few years.

How to compare vehicle title loans

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

• Interest rate and fees

  The interest rate you get can have a big impact on the overall cost of your loan, so make sure you compare lenders and keep an eye out for hidden fees. The max you can expect to pay for car title loans is 60% APR.

• Loan amount

  The amount you can borrow will depend on how much your car is appraised for and your lender’s maximum loan amount. Generally, you can borrow 25-50% of your vehicle’s resale value, which your lender will assess using valuation tools and your inspection documents.

• Loan term

  Loan terms will differ between providers but can last anywhere from a few months to a few years. You may also get a shorter term – lasting only a few weeks – if you choose to get a single-payment quick car title loan in Canada.

• Payment flexibility

  Find out if a lender lets you make payments weekly, bi-weekly or monthly. You’ll also want to see if you can prepay your loan early without penalty. This will let you save money on interest if you get extra cash and want to use it to pay off your loan ahead of schedule.

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

• What do I need to get a car title loan in Canada?

  You'll usually need to be the sole owner of a car that is in good to excellent condition, with no other outstanding liens on it. The insurance and registration for the car will need to be in your name. From there, you may need to meet other eligibility requirements such as having a bank account and being a Canadian citizen/resident who's the age of majority in your province.

• Can I get a title loan if I don't have a car title?

  It's not possible to get a car title loan without documentation to prove you own the vehicle. If you've lost your car title document (which is your registration in Canada), you can apply for another copy with your province.

• Is it harder to find a car title loan online than it is in person?

  It can be more difficult to qualify for quick car title loans in Canada completely online since most lenders will want to inspect your car in person. Some lenders may be willing to receive photos and an inspection report from a third party, but you'll need to shop around to find one that will let you send this information in virtually, and it will often take more time to process.

• Can I get a car title loan if I don't have a job?

  You can get a car title loan with no job if you have other forms of income coming in, such as unemployment, disability, pension or tax benefits. Most lenders will require you to have some form of income or proof of savings to show that you can pay your loan back on time.

• What happens if I can't pay back a vehicle title loan?

  Your credit score will go down if you miss payments or make late payments. If you default completely on your loan, your lender will eventually repossess your car and sell it off to make up their losses. Depending on where you live, your lender may be required to set you up with a payment plan before this happens, so be sure to talk to them about your options.

• Can I refinance my title loan online?

  It depends on where you live – some provinces have restrictions on how often you can refinance a title loan. If it's legal in your province, some online title loan providers also offer refinancing services. Reach out to your lender to learn what your options are and compare them with other companies offering similar products.

• Can I sell my car that has a title loan on it?

  Yes, but it's not always easy. Learn more about how to sell a car with a lien on it.