5 Best Car Loans in Toronto in 2024 Reviews | Providers To Consider Based on Your Credit Situation

January 22, 2024 | Editorial Team

The cost of living in Toronto is among the most expensive in the whole of Canada. Therefore, it is unsurprising that many car buyers in Toronto are choosing to buy their vehicles using a car loan. Regardless of your credit history, it is still possible for you to be approved for a car loan. You can use car loan calculators to get an estimate of your financing options. You can complete a car loan application in a few short minutes, and you can receive your financing within a few days.

Finding the best lender in Toronto can be tricky, even if you have a good credit rating. This article will look at the best car loan providers in Toronto and offer you advice based on your credit situation. Moreover, apart from Toronto, take a look at our car loan reviews for other parts of Canada, namely the whole of Ontario and BC, and also Edmonton, Ottawa, and Calgary. Now, let’s get started!

Best Car Loans in Toronto Reviews

1. LoanConnect

LoanConnect is the largest search engine in Canada for all types of loans. They have dealt with more than $500 million in loan applications so far. It is a popular option for auto loans in Toronto because they provide you access to countless vehicles, dealerships, and lenders across the city.

To search for the perfect car loan, you need to provide LoanConnect with the required personal information. You also need to inform them of the loan amount you will need to purchase your vehicle.

You will then be shown a list of the Toronto companies that can provide you with a loan. LoanConnect may offer you a car loan or a personal loan. You can obtain a loan of up to $50,000 and choose a repayment period between 6-60 months. You can even receive your funds the same day!

A car loan typically comes with lower interest rates than other loan types. This is because if you default on your monthly repayments, your vehicle can be seized as collateral. A personal loan will have a higher interest rate (up to 55% APR) because the loan is unsecured, and your vehicles cannot be seized as collateral.

The loan options you are offered will depend on your credit score. If you have a good credit score, you are more likely to be offered a loan with a low-interest rate. If you already have a bad credit score, paying a down payment may give you a better chance of being accepted for a car loan.

Let’s take a look at some of the pros and cons of obtaining your car loan from LoanConnect.


  • The application process is quick and secure. You can receive your money in less than 24 hours.
  • Even if you have a poor credit score, low can still customize your car loan to suit your requirements.
  • Searching for a car loan on LoanConnect has no impact on your credit score.
  • You can opt for pre-approval when searching for your car loan. LoanConnect will access your credit score. They will then recommend loan providers that are likely to accept your application.
  • You can be pre-approved for a car loan of up to $50,000 in only sixty seconds.
  • Loan terms vary. You can choose a loan term between 6 – 60 months.
  • There are 12 different types of loans from a variety of lenders. You can choose a car loan, an unsecured personal loan, or a bad credit loan.
  • All lenders are vetted and verified.
  • There is no minimum credit score requirement.
  • There is no minimum income requirement.
  • Even if you have debt, you can still get approved for a car loan. To be approved, make sure your debt is less than 60% of your income.
  • Using LoanConnect is completely free. Their online loan search and pre-approval have no commitment requirements. You can search for loans obligation-free.
  • LoanConnect take safety and security very seriously. They take all the appropriate steps to ensure your personal and financial information is protected.


  • The maximum car loan is $50,000. You will not be able to use LoanConnect for cars that are more expensive than this.
  • Those with a poor credit history may not be accepted for a car loan or may be expected to pay high-interest rates.

2. Canada Drives

Canada Drives are a quick and convenient way to apply for a car loan in Toronto. If you are looking for a lending platform that focuses specifically on car loans, Canada Drives could be a fantastic option. They have provided more than 1 million car loans to Canadians since 2010.

Canada Drives is partnered with over 350 car dealerships. Whether you are looking for a new or used car, they can help you find the vehicle of your dreams with an affordable auto loan. Canada Drives provides an easy-to-use car loan calculator. This will help you estimate your interest rate and loan repayment options.

You can then begin your application process. This involves providing your personal information, loan amount, and any down payment you are able to pay. You should also provide an email address or phone number so potential lenders can contact you. Canada Drives will then connect you with dealerships in Toronto that can offer you car loans.

Canada Drives pre-approves you for loans before you even begin shopping for your car. This allows you to see the size of the loan you are likely to be approved for and potential loan providers.

Hopefully, you will be connected to more than one dealership, as this will allow you to choose the best option for you. However, if you have bad credit, your options may be more limited. The dealership will then contact you directly to discuss your vehicle choice and your credit options.

Here are some of the pros and cons of searching for a car loan with Canada Drives.


  • Canada Drives’ online platform has a car loan calculator available for free. This enables you to see what your financing options could be.
  • It is quick and simple to complete a loan application. It can take as little as three minutes.
  • Car loans up to $75,000 are available.
  • Canada Drives has no hidden fees or costs. Their finances are competitive and transparent.
  • Loan terms range from 12-98 months. You can choose the best loan term for your financial situation.
  • 100% of the application process is completed online.
  • A 24-hour helpline is available if you have any questions or concerns.
  • Your new car will be delivered directly to your door.
  • All cars undergo a 150-point inspection. You will also receive a free CARFAX report.
  • You will receive a 7-day money-back guarantee and a 30 day/1,500km warranty.
  • You choose whether you want your repayments to be weekly, bi-weekly, or monthly.
  • Choosing to make a bigger down payment will result in you receiving a better rate for your car loan.
  • Even those with a bad credit score could be accepted for a car loan with Canada Drives.


  • Those with a poor credit score may have to pay interest rates up to 46.96%.
  • A hard credit check is completed when you apply for a loan. This can have a negative impact on your credit score, especially if some loan providers reject your application.

3. Car Loans Canada

Car Loans Canada is one of the top-rated car loan websites in Canada. They provide a quick and easy service for shopping and getting pre-approved for car loans in Toronto. Car Loans Canada has provided more than 1.6 million Canadians with car loans so far. They also approve 12,000 loan applications every single month.

Car Loans Canada’s website has an easy-to-use car loan calculator. This allows you to get an estimate of your auto loan cost. They also offer you information on your credit score.

The application process is quick and straightforward. Car Loans Canada will then match you with companies in Toronto that can provide you with the credit you need to purchase your vehicle.

Car Loans Canada has an all-credit accepted policy. This means that you will be accepted for a car loan, regardless of your credit rating. If you have a bad credit score or no credit history, Car Loans Canada can match you with bad credit car loan providers in Toronto.

For those who may be concerned about the interest rate attached to bad credit car loans, Car Loans Canada’s website provides useful tips and information. This includes topics such as factors that may negatively impact your credit application and steps you can take to improve your chances of acceptance.

Let’s take a look at the pros and cons of choosing a car loan with Car Loans Canada.


  • The pre-approval process allows you to see which loans you are likely to qualify for. Pre-approval helps to protect your credit score.
  • The application is quick and simple. The process takes only two minutes.
  • Your loan options will be tailored to your specific needs.
  • Term lengths are available up to 96 months.
  • Interest rates vary from 3.99%- 31.99%.
  • Car Loans Canada offers advice on whether to buy new or used cars. They help you calculate the cost of the loan and the value of the car at the end of your loan term.
  • You do not need a Social Insurance Number (SIN) to qualify for a car loan.
  • No deposit is necessary.
  • Car Loans Canada has a large network of lenders. Their network includes well-known banks and financial institutions.
  • You can choose an open-ended loan. This allows you to make lump-sum payments. You can also pay off your loan at any time with no financial penalties.
  • You can choose to make your payments monthly, semi-monthly, bi-weekly, or weekly.
  • The website features a Resources section with helpful advice and information about car loans.


  • Car Loans Canada are not as easy to contact as other loan providers. You may even have to wait up to 24 hours for a response.
  • Only those with a good credit score are likely to be eligible for low-interest rates.

4. Refresh Financial

Refresh Financial is a credit building lender designed specifically for those with a bad credit score or no credit history. They help you to improve your credit score and reach your financial goals. Refresh Financial has helped more than 100,000 people across Canada since 2013.

Refresh Financial aims to help you get your finances back on track. It is a great alternative to bad credit loans. Bad credit loans usually have extremely high-interest rates. This means your monthly repayments are likely to be much higher. Additionally, the overall amount you will repay will be significantly more than the borrowed amount.

Choosing Refresh Financial as an alternative to a bad credit loan may help you to save money overall. Additionally, building your credit score can benefit you hugely in the long term.

Refresh Financial is owned by the parent company Borrowell. Borrowell is the biggest online loan provider in Canada. They offer a variety of financial products as well as free credit scores through Equifax.

In order to use Refresh Financial’s services, you first need to complete a digital application. They do not complete a credit check but instead use the information you provide to show you how to build your credit score. They provide automated payments and payment reminders and report directly to the credit bureaus. This helps to build your credit score quickly.

Their Credit Builder Loan does not provide you with any money upfront. You make payments into a secured account. You can access this account at any point and make withdrawals. Making contributions to the Credit Builder Loan builds your credit score. Instead of having access to a traditional loan, your payments will act as a loan you can access in the future. You can then use the money you save to buy a car. Using this service also gives you a much higher chance of being accepted for a traditional loan in the future.

Let’s take a look at the pros and cons of using Refresh Financial as an alternative to traditional car loans.


  • You can deposit funds in a number of ways, including bi-weekly and monthly.
  • Loan terms vary from 36-60 months.
  • Any funds you have deposited can be accessed at any time.
  • Your payment history is reported to both Equifax and TransUnion. Your payments will then show up on your credit report and help to build your credit score.
  • No credit check or credit history is required.
  • You can access a free TransUnion credit report and score. Checking your credit score with Refresh Financial should not impact your credit rating.
  • Credit Builder Loans are available between $1,250 and $25,000.
  • APR is a fixed amount at 19.99%.
  • Black Tier customers will have access to credit reports and credit alerts. They can also access the credit simulator, goal manager and Refresh Academy and Goals. Refresh Financial customers can get a 30-day free trial of Black Tier. 
  • You can also apply for a Refresh Financial secured credit card. This is an alternative way of building your credit score.
  • Their helpful customer service can be contacted by phone or email.
  • The monthly payment amount will vary depending on how much you intend to borrow.
  • You will have access to free educational tools. This helps you to better understand and manage your own finances.


  • Refresh Financial is only recommended for those with a poor credit rating or no credit history.
  • You are not being supplied with a traditional loan. Instead, you save money which you access in the future.
  • Funds can take between 10-15 days to appear in your account.
  • You may be subject to unexpected fees, such as withdrawal fees.

5. Borrowell

Borrowell has more than 50 financial partners and is the biggest online lender in Canada. More than 1.5 million people use Borrowell’s platform. 700,000 people in Ontario alone have signed up to Borrowell.

Borrowell offers a variety of financial products. For those looking for a car loan, you can choose to apply for a car loan, a personal loan or even a bad credit loan.

You can choose a loan between $500-$35,000. Loan terms range from 6-60 months. Borrowell is partnered with Equifax and offers free credit reports.

Once you sign up on Borrowell’s website, you will receive your credit score free of charge. Borrowell will then match your credit profile with their loans. They will then provide you with a list of all your loan options. The list will include loans you are most likely to be accepted for and the interest rates you are likely to pay. This is known as pre-approval. Pre-approval helps you to avoid being rejected for a loan, which can have a negative impact on your credit score.

There is no obligation to commit to a car loan with Borrowell. If you choose a loan and submit an application, Borrowell will perform a free hard credit check. Borrowell will also consider other factors when checking your loan application. This includes the likelihood of you making repayments and the value of the car.

If your credit score is lower than 575, you can still apply for a loan. Borrowell’s bad credit loans improve the likelihood that you will be accepted by one of Borrowell’s 50 financial partners. You can then use this loan to purchase your chosen car.

Here are some of the pros and cons of applying for a car loan with Borrowell.


  • Borrowell will initially only perform a soft credit check. This has less of an impact on your credit score.
  • Ontarians have seen their credit score rise an average of 15 points after signing up to Borrowell.
  • The online platform and mobile app allow you to check your credit score for free.
  • Their online platform shows you the likelihood that you will be approved for a loan without performing a hard credit check. This helps to protect your credit score.
  • It only takes a couple of minutes to input your information and receive a list of loan providers specific to you. The application process and the online platform are very user-friendly.
  • You can make a prepayment or pay off the remainder of your loan early with no fees or financial penalties.
  • Receive your Equifax credit score in less than three minutes. Your credit score is updated every week and you can access your score for free whenever you want. It would usually cost you $19.95 per month to access your credit score on Equifax.
  • There are multiple deposit options available. Choose the best option for your financial situation.
  • Those with a credit score higher than 660 can apply for a car loan with a very low-interest rate.
  • Those who have experienced bankruptcy may still be accepted for a loan.
  • Once you have been provided with a list of loan options, you can tailor your search to include specific requirements. Examples include your preferred loan term and the value of the car.
  • Access free credit tips and educational resources to help you improve your credit score and your understanding of loans.
  • Borrowell has an A+ rating with the Better Business Bureau. This suggests they have good customer service and deal with any complaints efficiently and effectively.


  • Pre-approval does not guarantee you will be accepted as Borrowell does not perform a full credit check.
  • Standard car loans have strict requirements. This includes a minimum annual income requirement of $20,000 and a minimum credit history of 12 months.
  • There is no option to make payments weekly, bi-weekly, or semi-monthly.

The Bottom Line

If you are looking for a car loan in Toronto, you can take steps to reduce your interest rate and monthly repayment amount. Using car loans calculators can help you find the best deals in Toronto. Using a loan comparison website could help you find more than one loan company in Toronto that is willing to offer you the credit you need.

Before committing to a car loan, ensure that you are happy with the interest rate and that you can afford the monthly repayments. Get started on your loan application today and find your dream car in Toronto.