As the 4th largest city in Canada, residents that live in Toronto must own a car to get around efficient. If you are looking to invest in one, you have the option to purchase it outright. For some, that might be overwhelming right away, so instead you could apply for an auto loan. This method varies quite a bit depending on which provider you work with since some providers could take up to weeks to deliver a response of any kind. At Smarter Loans, we understand how ridiculous this is and promise to only work with auto loan providers who have streamlined their application process beforehand for our applicants. Our applicants that have started relationships with our auto loan providers located in Toronto have attained their auto loans, or van and SUV financing quicker than ever.
We wanted to accelerate the process further so we enhanced our loan directory. The majority of applicants complained that they wasted a lot of time when researching into our auto loan providers and their history.
This is when we realized it was tough to find accurate information on certain providers without wasting a bunch of time. Thus, we organized sufficient information for our applicants to make an informed decision such as interest rates or customer reviews available directly off our website. Now our applicants are able to start driving their new automobile, SUV, or pickup truck within days of submitting an application form.
Browse through the list below to see which auto loan providers we work with. Click the “Apply Now” button besides the name of the auto loan provider you wish to work with to start an application form. Some applicants rather avoid the process altogether so we suggest for them to pre-apply at Smarter Loans instead. We will help you choose an auto loan provider in Toronto that best suits your needs.
The first step to getting a car loan in Toronto is finding the right lender. There are a few types of lenders available to you.
The easiest way to get a car loan is through your car dealer. Many private dealerships work with car loan providers. If it’s a big car company, the dealer can call their lending department to get you a loan. This makes your car dealer the most convenient option, as they can get you a loan on the spot.
You can also get auto loans from traditional lenders like banks and credit unions. Banks and credit unions offer good rates on car loans. They can also offer more professional and personal service for financing a car.
Alternative lenders are another way you can find an auto loan. If you’re looking for very fast service, alternative lenders will be the fastest choice. They also deal with borrowers with low credit. The only issue is they charge higher rates than the other lenders.
Toronto car loans work the same way as all Ontario car loans. In Ontario, you can get a car loan for the entire value of your car right away directly from your lender. You can also negotiate the rates and terms of your loan. Specifically, you can negotiate interest rates and the total repayment period. Payments are monthly, but you can make your monthly payments smaller by negotiating for a longer term.
Getting a car loan is easy. All you will need is:
Some lenders may have their own separate requirements. Also, different kinds of lenders will need different documents. For example, your bank won’t ask you for proof of income, as they have access to your bank statements. Also, you must be at least 18 years old to take out any loan in Canada.
Yes, you can get a loan with bad credit in Toronto. But getting a loan with no credit will be harder.
For a bad credit car loan, you can often still get a loan from your car dealer or a bank. If your credit score is too low, or if you have no credit, you can still find a loan from alternative auto lenders. These alternative lenders will finance a car for almost anyone, but their rates will be higher. They may also require collateral.
You will still be expected to provide proof of income for bad credit car loans.
Car loans in Ontario carry fixed interest rates. Rates start at less than 3% for borrowers with the best credit. For the borrowers with the lowest credit scores, rates can go much higher. The highest interest rate legally permitted in Ontario is 60%.
The approximate interest rate ranges vary according to your credit score:
If your score is particularly low or you don’t have a credit history, rates can go up to 60%. Average Ontarians can expect a rate of 4.5% to 6%. Also, used cars will carry higher interest rates. You can expect to pay 2%-3% higher interest rates for a used car. Voluntarily providing collateral can also lead to lower interest rates.
Amy Orr is a professional writer and editor with over 10 years of experience in the Canadian, U.S. and U.K. financial markets. She has written for numerous publications on topics as diverse as economic literacy, corporate finance, and technical analysis of numerical data. Prior to transitioning to full-time writing, she worked in the hedge fund sector. Her academic background is astrophysics, and she has a Masters in Finance from the University of Edinburgh Business School.
Jenna West is Smarter Loans' in-house financial writer and content director. She has been covering the Canadian FinTech and finance industry since 2017, including financial trends analysis, industry surveys, regulatory updates and changes in Canadian consumer behaviour when it comes to finance.
