Trusted by More than 2,000,000 Canadians since 2016

Car Repair Loans in Canada – Get Back on the Road with Affordable Financing

  • chFinance repairs from $500 and up
  • chRates from 9.99% - 34.99% APR
  • chGet approved for a car repair loan in Canada
up Last updated

October 18, 2025

up Written by:

Amy Orr

up Reviewed by:

Amy Orr

Unexpected vehicle repairs can derail your budget—whether it’s a blown engine, transmission failure, or major suspension work. A car repair loan offers a reliable way to cover these costs and get your vehicle back on the road. On this page you’ll discover how car repair loans work in Canada, what lenders look for when approving repairs, how credit and vehicle condition matter, and how to estimate your payment with our personal loan calculator.

When you’re ready, apply for a car repair loan to access tailored offers.

Compare Lenders

AMOUNT
$300 - $35,000
INTEREST RATE
9.99% - 34.95%
TERMS
6 - 84 Months
AMOUNT
Up to $20,000
INTEREST RATE
19.8% - 34.99%
TERMS
36 months
AMOUNT
$1,000 - $5,000
INTEREST RATE
19.9% - 34.5%
TERMS
12 - 36 months
AMOUNT
$150-$1000
INTEREST RATE
30.4% APR
TERMS
30 Days
AMOUNT
$500 - $1,000
INTEREST RATE
Varies
TERMS
3 - 6 months
AMOUNT
$30 - $250
INTEREST RATE
0%
TERMS
N/A
AMOUNT
$20-$500
INTEREST RATE
0%
TERMS
N/A
AMOUNT
$500 - $2,500
INTEREST RATE
18.99%
TERMS
Variable
AMOUNT
$500 - $150,000
INTEREST RATE
9.99% - 34.99%
TERMS
9 - 240 months
AMOUNT
$500 - $25,000
INTEREST RATE
34.56% - 34.95%
TERMS
6 - 84 Months
AMOUNT
$500 - $15,000
INTEREST RATE
34.37%
TERMS
12 - 60 Months
AMOUNT
$100 - $1,500
INTEREST RATE
Varies
TERMS
2 months
AMOUNT
$1,000 – $15,000
INTEREST RATE
19.9% - 34.9%
TERMS
Line of Credit
AMOUNT
Up to $250
INTEREST RATE
0% APR (Has Fees)
TERMS
Varies
AMOUNT
$100 - $1,500
INTEREST RATE
Varies
TERMS
2 months
View More Lenders

Common Questions About Getting a Car Repair Loan in Canada

What is a car repair loan and when should you consider one?

A car repair loan is a type of financing designed specifically to cover the cost of vehicle repairs - such as engine rebuilds, transmission replacements, major suspension work, or high-dollar maintenance. Instead of using a credit card or paying out of pocket, you receive a lump sum and repay it over time in instalments. It's especially useful when you depend on your vehicle for daily use or work and cannot afford extended downtime.


What kinds of repairs qualify for this loan?

Eligible repairs include mechanical, electrical, structural or safety-related work. For example: engine or transmission rebuilds, full suspension replacements, major collision repairs, body-work after an accident, catalytic converter replacements, or comprehensive brake/ABS system rebuilds. Some lenders may also cover necessary maintenance if the total bill is high enough to justify a loan rather than regular credit use.


What credit or financial profile do lenders require?

While requirements vary, many lenders consider:

  • Your credit score (stronger means better terms)

  • Your monthly income and ability to repay

  • The value and condition of the vehicle being repaired

Some repair-specific programs allow for weaker credit if the vehicle has enough value or you have recent income. For instance, in Canada some companies offer repairs financing with no credit check by assessing vehicle value instead.


How much can you borrow and what are typical terms?

Loan amounts in Canada range from hundreds to tens of thousands of dollars, depending on the repair. Some lenders cover small-scale repairs ($700-$10,000) with terms of 12-48 months. Others specialise in larger sums with longer terms. Terms may be up to 60 months in certain cases when repair is major and payment risk is low.


How does the vehicle's condition and value affect approval?

If the vehicle is older, has high mileage or the repair cost approaches its value, lenders may be more cautious. They look at whether the repair will extend the life of the vehicle enough to justify payment risk. Vehicles with higher value or reputable models tend to get easier approvals.


Can you still qualify if you have poor credit?

Yes - many repair loan providers accept borrowers with weak credit provided other factors (income, vehicle value, repair necessity) are favourable. Some offer no-credit-check options based solely on vehicle value. However, terms may be worse (higher rate, shorter term) so consider cost carefully.


How does a repair loan compare to using a credit card or payday loan?

Repair loans typically offer better structure and terms compared to using a high-interest credit card or resorting to a payday loan for vehicle repairs. With a repair loan you get set instalments, clearer repayment timeline and may avoid interest stacking and rollover debt. Experts note that credit cards and payday loans often cost more in the long run.


What documentation is usually required?

You will likely need:

  • A detailed repair estimate/invoice from a mechanic or shop

  • Proof of identity and residency

  • Proof of income or business income (if applicable)

  • Vehicle information (make, model, year, mileage, VIN)

Having these ready speeds approval.


How fast can funds be available?

Many repair-loan providers offer rapid approvals - some within hours or 24-48 hours - once documentation is complete. This is particularly useful when you depend on your car for work or daily transport.


Are there hidden risks or red flags with repair loans?

Yes. Watch out for:

  • Really high interest rates or fees

  • Loans longer than the remaining useful life of the vehicle

  • Lenders that push you to repair a vehicle that may soon need replacement

  • Lack of early-repayment options or penalties for payoff
    Always check total cost, compare offers and ensure the repair is financially sensible.


Does using a repair loan affect your credit or ability to rebuild credit?

Yes. If the lender reports payments to the credit bureaus, making on-time payments can help rebuild your credit. On the flip side, late or missed payments will harm your credit. Choosing a structured repair loan instead of high-interest debt may help your financial profile long-term.


When is it better to repair vs replace your vehicle?

Consider repair if:

  • Vehicle is in generally good condition and repair cost is less than half of its value

  • You expect to keep the vehicle multiple more years

  • Repair cost improves safety or reliability and avoids downtime

Consider replacement if:

  • Repair cost is very large compared to value

  • Vehicle has other known upcoming issues

  • You'll be upside-down (owing more than vehicle is worth) after repair

Lenders recommend assessing this before taking on debt for major repairs.


What is your first step if you need a car repair loan?

First get a detailed repair estimate from your trusted mechanic. Then use the personal loan calculator to check payment feasibility. Finally, apply to repair-financing lenders by submitting your documents and choosing a plan that fits your budget.

When ready, apply for a car repair loan to access tailored offers.

av
writtenWritten by:

Amy Orr

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.

av
writtenReviewed by:

Amy Orr

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.

Awesome G.
04:46 26 Feb 25
I’m very honoured to shear my experience with this illustrious platform. To be able to systematically choose from a list optional to one’s profile without doing much leg work is truly rewarding. This platform allowed to expand my options and chose which lenders fit my profile, thank you and continue doing what you do best,, connecting people to available wealth opportunities.
Pat M.
03:10 26 Feb 25
Good place to get a loan
Chris “Stufphr” H.
02:07 26 Feb 25
When you feel in need of a loan do it smart and make it a Smarter Loans.
Dan Bott (.
01:41 26 Feb 25
Very Helpful, was assisted in a timely fashion and was ultimately able to receive assistance; I highly recommend!!!
joel K.
22:59 25 Feb 25
I have recommended this place to many friends I feel that this company goes out of their way to help people that they can and they are very easy to work with
Nate C.
13:22 27 Oct 24
This company is reliable, quick, and just has the best customer service and rates it is a easy process with quick results. Would definitely recommend to anyone that needs the help.
Vincent J.
07:08 23 Oct 24
Good place for borrowing a bit of money 😁
Kels H.
06:41 23 Oct 24
Personally love this opportunity and app. Super convenient and easy to use and super awesome variety of great loans. Thanks so much guys for making such an awesome site and app and being there for me over the years. :)
Tara H.
16:23 16 Oct 24
From beginning to end, my experience was great! Very professional and personable agents. They only asked questions that were needed for the loan and payments were extremely reasonable. Would recommend to anyone who needs emergency funds.
A S.
19:43 11 Oct 24
“ Thank you SO very much! My situation was tricky and you guys made the whole process so effortless. The way you guys handle the whole process so discreetly. That truly speaks to how well your office is run and the caliber of specialists who handled the processing of my entire loan!”

Why Choose Smarter Loans?

smart

Access to Over 50 Lenders in One Place

smart

Transparency in Rates & Terms

smart

100% Free to Use

smart

Apply Once & Get Multiple Offers

smart

Save Time & Money

smart

Expert Tips and Advice

As seen on
  • logo
  • logo
  • logo
  • logo
  • logo
  • logo