Bad credit or a limited credit history can easily keep you out of the traditional car lending market. That said, platforms like CarsFast are changing the auto financing landscape and making it easier for Canadians with any credit profile to purchase a vehicle.
In this CarsFast review, I examine how to get car loan approvals in Canada, the application process, and more.
Key Takeaways
- CarsFast is an online platform that offers quick and easy car financing for all types of borrowers.
- Depending on your credit score, you can get a loan of up to $75,000, terms of up to 96 months, and interest rates of around 4.90% to 29.90% APR.
- CarsFast is partnered with several big banks, including TD, RBC Royal Bank, Scotiabank, and CIBC.
What is CarsFast?
CarsFast is a Canadian online car shopping website that specializes in helping people with various types of credit obtain financing to purchase their ideal cars.
The platform has approved more than 350,000 customers across Canada through its dealerships in various provinces and territories and partnerships with car loan providers.
TD, RBC Royal Bank, Scotiabank, CIBC, HSBC, and BMO Financial Group are among the financial institutions partnered with CarsFast Canada.
Other partners are Envision Financial, Savings and Credit Unions of British Columbia, Rifco National Auto Finance, General Bank of Canada, Ally, WS Leasing Ltd. VFC, and Valley First.
CarsFast, a LendingArch subsidiary, allows vehicle shoppers to compare multiple car loans in Canada and find the suitable option for their needs.
Owned by Consumer Genius, Inc., CarsFast was recognized by The Globe and Mail in 2022 as one of Canada’s top-growing companies.
CarsFast Loans
CarsFast offers three types of car loans that anybody with any credit can apply for.
- New and pre-owned vehicles – These loans are for purchasing new, pre-owned vehicles such as cars, minivans, SUVs, or trucks.
- Bad credit car loans – These loans are designed for those with no credit, who have credits that are less than ideal, or who have filed for bankruptcy.
- Trade-ins – CarsFast accepts trade-ins as a down payment to help reduce monthly payments on a new car loan.
CarsFast loan amounts are from $500 to $75,000, with terms ranging from 12 to 96 months. Interest rates vary depending on various factors and may range from 4.90% to 29.90% APR.
Your loan amount and its duration are among the main factors that dictate how much your interest rates will be.
As we always say, you will enjoy lower interest rates on your car loan if you have good credit, a reliable income stream, and a considerable down payment.
The loan contract also details the loan repayments you must make, with the options being bi-monthly and monthly.
Depending on your situation, you may qualify for prepayment without paying penalties if you plan on paying off your loan faster.
How To Apply For a CarsFast Loan
Applying for a CarsFast vehicle loan is straightforward. The website does not require us to create an account before we can start filling out the application form.
Here are the steps in applying for a CarsFast car loan:
- Go to CarsFast.ca and click on your preferred type of vehicle.
- Answer the questions about the following:
- Monthly budget
- Vehicle preferences
- Personal information such as date of birth, home address, email address, and telephone number
- If you own or rent your home
- Your monthly mortgage or rent payments
- Employment information such as employment status, where you work, monthly gross income, and how long you have been earning the income,
- Provide proof of identification and other required documents, such as bank statements or pay stubs.
- From the CarsFast inventory, select the type of vehicle you want to purchase.
- Submit the application form upon completion.
- Get pre-approval within minutes. A CarsFast representative will contact you and send you a list of lenders with pre-approved loan offers for you, including your rates.
- Compare the rates offered to you and choose the ideal offer for you.
- Wait for a phone call from the lenders to discuss the loan quotes offered to you. Ask the lender if you are eligible for prepayments and loan refinancing.
- Sign up for the loan offer you selected after you have discussed your agreement and loan terms with your chosen lender.
- Pay for your vehicle as agreed and start making the monthly payments.
We found the eligibility requirements for a CarsFast quick approval loan as straightforward as its approval process.
When applying for a car loan, you need to meet the following:
- An employment income of at least $20,000 per year
- Employment for a minimum of three months
- A valid driver’s licence
- A citizen of Canada over 20 years old
To qualify for a CarsFast quick approval loan, you must be able to present the following documents:
- Government-issued ID – This can be a passport, a driver’s licence or any ID that provides proof of your identity.
- Proof of residency – This will specify your permanent address in Canada, which is a requisite before any financing is given approval.
- Proof of income – This document, which can be a pay stub, will show your monthly earnings.
- Void cheque – You will need to provide this to CarsFast when setting up a payroll deposit where the lender will deposit your funds and deduct automatic loan payments.
Advantages of CarsFast
There are several reasons why we recommend CarsFast for car financing needs:
Best for comparing options. When you apply, CarsFast provides quotes from several lenders, allowing you to compare the rates on offer and select the most suitable car loan for you.
Easy online application. In two minutes or less, you can apply for financing at CarsFast and get matched with lenders willing to finance your car purchase.
Multiple financing options. After submitting your application, you will receive a list of lenders with pre-approved offers for you to select from.
Fast approval. The pre-approval and approval processes are fast, so you can get financing for your car in a few days, depending on your chosen car loan offer and lender.
No collateral required. CarsFast does not ask you to put up any collateral.
Numerous dealerships. CarsFast has access to 350 dealerships across Canada.
No sign-up or log-in required. Unlike other car financing sites, CarsFast does not compel you to create an account on their website to complete a five-minute car financing application.
Available across Canada. Wherever you are in the country, you can apply for vehicle financing in minutes, obtain quick car loan approval, and get your car from one of its 350 dealers.
If there are advantages that we think CarsFast has over other lenders of its type, they are the multiple loan offers that help borrowers easily find the best option and the fast approval process.
Downsides of CarsFast
While CarsFast has several plus points, it also has some disadvantages you must consider before taking out a loan.
High-interest rates for borrowers with bad credit. If you have bad credit, chances are you will get higher interest rates than borrowers with good credit because you are considered high-risk. This means you will likely have to accept higher rates to get a quick approval loan.
Credit check. CarsFast works with various lenders who offer car financing to borrowers with every type of credit. There may be lenders who will require a credit check before approving any financing application.
No private-sale vehicles available. The platform offers dealership vehicles only through its partnership with over 350 dealerships.
Is CarsFast Legit?
CarsFast is a legitimate entity with over 350,000 customers across Canada. It has access to 350 dealerships and a network of car loan providers, including TD, RBC Royal Bank, Scotiabank, and CIBC.
Its parent company is Consumer Genius Inc., which also owns LendingArch and CarMonk.
Consumer Genius, Inc. is the country’s 15th fastest-growing company, and the Canadian National Business Awards nominated it for the Top Business of the Year Award in 2022.
CarsFast Alternatives
Besides CarsFast, you can find other options for a car financing that work the same way. In this CarFast loans review, we also list the different alternatives you can evaluate and compare.
CarsFast vs Loans Canada
Car financing details:
- Loan amounts: Up to $50,000
- Loan terms: Three to six months
- Interest rates: Varied, but may range from 1.99% to 46.96%
Loans Canada works like CarsFast, connecting lenders with car financing applicants having all types of credit.
The financing application process in both platforms is also generally alike, requiring basic information, documents, and eligibility requirements.
We know Loans Canada as one of the more popular and top-rated platforms that have connected more than 1.5 million users to lenders offering personal loans, car loans and other products.
Both Loans Canada and CarsFast specialize in car loan options for all types of borrowers, from those with no credit to borrowers with below-average credit scores.
Related: Loans Canada Review.
CarsFast vs Clutch
Car financing details:
- Loan amounts: Up to $75.000
- Loan terms: 12 to 96 months
- Interest rates: Varied
Clutch is an online car retailer and a popular alternative often discussed in CarsFast CA reviews due to their similarities.
Both CarsFast and Clutch have easy and fast application and car-buying processes that you can complete entirely online.
Through the Clutch platform, you can easily purchase a car online and have it delivered to your doorstep to test drive.
Unlike CarsFast though, Clutch has its own inventory of vehicles that buyers can choose from. Another major difference is that Clutch is only available in Ontario and Nova Scotia.
We believe that, like CarsFast, Clutch provides a terrific option for car buyers who need financing.
A substantial drawback for Clutch, however, is that it has limited purchases and shipping between select provinces, including Alberta, British Columbia, and Nova Scotia.
Here’s a detailed Clutch explainer.
CarsFast vs Canada Drives
Car financing details:
- Loan amounts: Up to $75,000
- Loan terms: Up to 92 months
- Interest rates: Up to 19.9%, depending on your credit score and other factors
Canada Drives is also an online car shopping website like CarsFast that offers car financing options to borrowers through its network of lenders.
Both offer quick online applications and approval processes, with Canada Drives offering a pre-approval phase that you can complete in three minutes.
A primary difference between them is that borrowers can have Canada Drives deliver their chosen vehicle right to their doorstep.
Also, unlike CarsFast (which is available across the country), Canada Drives is restricted to car shoppers in British Columbia and Ontario, which we think limits the platform’s potential.
Check out this Canada Drives in-depth guide.
FAQs
A standard interest rate for a car loan in Canada can range from 4% to over 10%. The rates are usually affected by various factors such as your creditworthiness, vehicle type, the length of the loan, and other loan characteristics.
The interest on a car loan is calculated based on various factors like your credit score, loan amount, loan type, the amount of your down payment, lender policies, and market conditions. The smaller your loan amount and the shorter its duration, the lesser interest you pay.
The interest rate for Canada Drives is anywhere from 3.99% to 19.9%. The calculation of the actual rate will depend on your credit score, loan amount, loan terms and other factors.
Canada’s central bank raised the interest rate in January 2023 and paused it in March. Industry experts predict that the central bank will begin lowering prime lending rates before the end of 2024.
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