{"id":782625,"date":"2019-05-23T12:51:23","date_gmt":"2019-05-23T16:51:23","guid":{"rendered":"https:\/\/www.finder.com\/ca\/?p=782625"},"modified":"2026-03-04T16:35:18","modified_gmt":"2026-03-04T21:35:18","slug":"common-car-loan-scams","status":"publish","type":"post","link":"https:\/\/www.finder.com\/ca\/car-loans\/common-car-loan-scams","title":{"rendered":"Learn About 6 Car Loan Scams & Compare Legit Lenders"},"content":{"rendered":"

According to the Canadian Anti-Fraud Centre, Canadians lost roughly $544 million to fraud as of September 2025. With so many car loan options on the market, how can you tell if a provider is legitimate?<\/p>

As a starting point, you can check out the list of providers below with our reasons for why they\u2019re legitimate. Plus, learn about common car loan schemes and how to avoid them.<\/p>

Which car loan providers are legit?<\/h3>
Car loan provider<\/th>Key features<\/th>How it\u2019s legit<\/th><\/th><\/tr><\/thead>
\"CarsFast\"

<\/strong><\/p><\/td>

CarsFast allows you to pre-qualify for loans from multiple lenders and compare your rates. You can apply with bad credit.

Interest rates: 3.90% - 29.90%<\/span><\/p><\/td>

  • It has helped 350,000+ customers.<\/li>
  • It has been featured in The Globe and Mail.<\/li>
  • It\u2019s partnered with the Big Six banks.<\/li>
  • CarsFast reviews are generally positive, with the company earning a 4.0\/5 on Trustpilot.<\/li><\/ul><\/td>
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\"Loans<\/td>Loans Canada is a broker with the largest lender network in Canada. Get matched with lenders that want to finance your car loan.

Interest rates: 0% - 35%<\/span><\/p><\/td>

  • It\u2019s a Canadian Lender\u2019s Association Approved Vendor<\/li>
  • It\u2019s rated A+ by BBB.<\/li>
  • It\u2019s been mentioned in the media, such as the Toronto Star and CBC.<\/li><\/ul><\/td>
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\"Clutch\"<\/td>Clutch is an online dealer. Browse 1000+ cars and have your car delivered to your door. \u201cTest Own\u201d for 10 days\/750 km.

Interest rates: From 7.99%<\/span><\/p>

\u00a0<\/p><\/td>

  • It\u2019s BBB-accredited with a B rating.<\/li>
  • It has been featured in The Globe and Mail, Global News and TechCrunch.<\/li>
  • It\u2019s partnered with the big banks.<\/li><\/ul><\/td>
\"My<\/a><\/td>My Auto Approval is a loan search and financial services comparison platform designed to help Canadians with less-than-perfect credit access auto financing.

Interest rates: <\/p>

\u00a0<\/p><\/td>

  • It\u2019s owned by Loans Canada, an online loan search platform that was established in 2012.<\/li>
  • It\u2019s partnered with major lenders and dealers.<\/li><\/ul><\/td>
\"Approval<\/td>Approval Genie is a direct lender offering good or bad credit car loans. It owns a small network of used car dealerships.

Interest rates: 3.90% - 29.90%<\/span><\/p><\/td>

  • Thousands of positive reviews on Google and Trustpilot<\/li>
  • It\u2019s very active on social media, including Instagram, Facebook and X.<\/li><\/ul><\/td>
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\"Dealerhop\"<\/td>Dealerhop matches you with one of its fulfillment partners to help you finance, trade-in or sell your car.

Interest rates: 6.99% - 35.00%<\/span><\/p><\/td>

  • It\u2019s reviewed on Trustpilot.<\/li>
  • Its partners work with reputable lenders, including Scotiabank, BMO, TD, CIBC and Rifco.<\/li><\/ul><\/td>
\"Canada<\/td>Canada Auto Finance is a free car loan matching service, connecting auto loan applicants with local dealers.

Interest rates: 4.90% - 29.95%<\/span><\/p><\/td>

  • It\u2019s partnered with local dealers across Canada.<\/li>
  • It doesn\u2019t issue any loans. Instead, it connects you with dealers and lenders who can help you with your car purchase.<\/li><\/ul><\/td>
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\"CarDoor\"<\/td>CarDoor is an online car dealer. It has a trial period of 7 days\/300 km and complimentary warranty of 90 days\/4,000 km.

Interest rates: Undisclosed<\/p><\/td>

  • It\u2019s a registered corporation and can be found in the Ontario business registry.<\/li>
  • It\u2019s partnered with the big banks to provide financing.<\/li><\/ul><\/td>
\"cardealcanada\"<\/td>Car Deal Canada matches applicants with both vehicles and financing via one of their partners.

Interest rates: 6.99% - 34.99%<\/span><\/p><\/td>

  • Over 50,000 Canadians have received financing and vehicles via Car Deal Canada.<\/li>
  • It\u2019s been in business since 2015.<\/li><\/ul><\/td>
\"LoanConnect\"

<\/strong><\/p><\/td>

LoanConnect's search engine shows lenders with highest likeliness of positive results.

Interest rates: 8.99% - 35.00%<\/span><\/p><\/td>

  • It\u2019s accredited by the Better Business Bureau with an A+ rating.<\/li>
  • It has a head office in London, Ontario.<\/li><\/ul><\/td>
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\"Car

<\/strong><\/p><\/td>

Carloans411 is an easy-to-use online platform that lets you get financing from a dealership near you. Get matched with a loan provider.

Interest rates: Undisclosed<\/p><\/td>

  • It has been in business since 2008, with offices in Toronto and Vancouver.<\/li>
  • It\u2019s active on all social media platforms, including Facebook, X and Instagram.<\/li><\/ul><\/td>
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\"Canada

<\/strong><\/p><\/td>

Canada Drives has a large inventory of vehicles so your car shopping experience can be done completely online. It also offers car financing.

Interest rates: Varies<\/p><\/td>

  • It has received more than 1 million applications since 2010.<\/li>
  • It placed 186th on The Globe and Mail\u2019s 2020 Report on Business ranking of Canada\u2019s Top Growing Companies.<\/li><\/ul><\/td>
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\"Auto<\/td>With Auto Credit Deals, apply in three minutes and find out how much you qualify for. Browse vehicles within your budget.

Interest rates: Undisclosed<\/p><\/td>

  • It\u2019s a legally registered business in BC and can be found in the OrgBook BC database.<\/li>
  • It\u2019s owned by Canada Drives Ltd.<\/li><\/ul><\/td>
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\"Driving<\/strong><\/td>Driving with Steve is partnered with certified dealers across Canada. Find out first how much you can borrow, then browse cars within that range.

Interest rates: Varies<\/p><\/td>

  • It\u2019s a legally registered business in BC and can be found in the OrgBook BC database.<\/li>
  • It\u2019s owned by Dealer Media Inc.<\/li><\/ul><\/td>
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\"401<\/td>401 Auto Financing considers applicants who are on ODSP, in a consumer proposal or have bad credit.

Interest rates: Under 4% into the 20s.<\/p><\/td>

  • It\u2019s legally registered in the Ontario Business Registry.<\/li>
  • It has 10 locations in Ontario with a corporate office in Cambridge.<\/li>
  • It\u2019s owned by 401 Auto RV Canada Inc.<\/li><\/ul><\/td>
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\"Iceberg<\/td>Iceberg Finance offers alternative auto financing for borrowers with less-than-perfect credit.

Interest rates: 12.99% - 31.99% <\/span><\/p><\/td>

  • It is a member of the Canadian Lenders Association.<\/li>
  • It clearly displays all contact information (phone, email, address, fax, business hours).<\/li>
  • It has an active business license registered in Quebec.<\/li><\/ul><\/td>
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\"VI<\/td>VI Drives connects prime and subprime borrowers to car financing.

Interest rates: Undisclosed<\/p><\/td>

  • It has a physical location in Nanaimo and has profiles on Facebook, LinkedIn and Google.<\/li>
  • It has a 4.8\/5 score on Google from 390 reviews.<\/li>
  • It was announced as a new business on Business Examiner<\/a>.<\/li><\/ul><\/td>
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\nRelated: <\/span>See our A-to-Z list of car loan provider reviews<\/a>\n<\/div>\n<\/article>

Are other car loan companies legitimate?<\/h3>