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CarsFast Review For 2024: Get Car Loans Fast in Canada

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We have seen how bad credit and limited credit histories kept many Canadians out of the traditional car lending market.

The good news is that platforms like CarsFast are opening doors for them, offering quick car loan approvals to help them purchase their own car.

In this CarsFast review, we will look at how you can get car loan approvals, how to apply, its pros and cons, and more.

Key Takeaways

  • CarsFast is an online platform that offers quick and easy car financing for all types of borrowers.
  • Get up to $75,000 loan amount, terms of up to 96 months, and interest rates of around 4.90% to 29.90% APR, depending on your credit score.
  • Complete the application form and get pre-approved in minutes.
  • CarsFast is partnered with several big banks, including TD, RBC Royal Bank, Scotiabank, and CIBC.

What is CarsFast?

CarsFast is an online car shopping website in Canada that specializes in helping people with various types of credit to 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.

Financial institutions partnered with CarsFast Canada include TD, RBC Royal Bank, Scotiabank, CIBC, HSBC, and BMO Financial Group.

Other CarsFast 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, gives vehicle shoppers the ability to compare multiple car loans in Canada and find the suitable option for their car needs.

Owned by Consumer Genius, Inc., CarsFast received recognition from 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.

Like we always say, you will enjoy lower interest rates on your car loan if you have good credit, have a reliable stream of income, and if you make 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 a process that we find very straightforward. It helps that 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:

  1. Go to CarsFast.ca and click on your preferred type of vehicle.
  2. 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,
  3. Provide proof of identification and other required documents, such as bank statements or pay stubs.
  4. From the CarsFast inventory, select the type of vehicle you want to purchase.
  5. Submit the application form upon completion.
  6. 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.
  7. Compare the rates offered to you and choose the ideal offer for you.
  8. 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.
  9. Sign up for the loan offer you selected after you have discussed your agreement and loan terms with your chosen lender.
  10. 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 legit entity with over 350,000 customers across Canada, 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, nominated by the Canadian National Business Awards 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

What is a normal interest rate for a car loan?

A normal 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.

How to calculate interest on a car loan?

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.

What is the interest rate for Canada Drives?

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.

Will car interest rates go down in 2023?

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 at the end of 2023 or early 2024.

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Author

Gravatar for Enoch Omololu, MSc (Econ)
Enoch Omololu, MSc (Econ)

Enoch Omololu, personal finance expert, author, and founder of Savvy New Canadians, has written about money matters for over 10 years. Enoch has an MSc (Econ) degree in Finance and Investment Management from the University of Aberdeen Business School and has completed the Canadian Securities Course. His expertise has been highlighted in major publications like Forbes, Globe and Mail, Business Insider, CBC News, Toronto Star, Financial Post, CTV News, TD Direct Investing, Canadian Securities Exchange, and many others. Enoch is passionate about helping others win with their finances and recently created a practical investing course for beginners. You can read his full author bio.

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