Top 10 Car Title Loans In Ontario For 2022

A car title loan is a type of short-term loan that uses your car’s title as collateral. The loan amount is based on the value of your car, and you can usually borrow up to 50% of its value. Car title loans are a convenient way to get quick cash, but they’re also expensive.

The annual percentage rate (APR) on a car title loan can be as high as 300%. That’s why it’s important to shop around for the best deal before you take out a loan.

To help you find the best car title loan in Ontario, we’ve compiled a list of the top 10 car title loans In Ontario for 2022. We’ve also included some tips on what to look for when shopping for a loan.

Key Takeaways

  • You’ll learn about car title loan
  • Top 10 Car Title Loans In Ontario For 2022
  • Answers to some frequently asked questions on Car Title Loans In Ontario 
Car Title Loans In Ontario

What Is A Car Title Loan?

A vehicle title loan is a loan in which your automobile serves as security, implying that the lender has the right to repossess your vehicle if you fail on the loan.

Car title loans often have hefty interest rates, implying you will pay more interest than a traditional loan. However, automobile title loans are often more straightforward than traditional ones. This is because when you apply for a vehicle title loan, the lender does not verify your credit history.

Looking around and evaluating multiple lenders is critical if you are contemplating a vehicle title loan. Specific lenders may provide cheaper interest rates than others. Before applying, you should also think about the loan’s conditions. Check to see how long the loan will continue and the payback conditions.

Overall, a vehicle title loan might be a smart alternative if you need money urgently and do not have strong credit. However, evaluating several lenders is critical before applying and ensuring that you understand the loan conditions.

How A Car Title Loan Works

A car title loan is a loan where your automobile is used as collateral, which means that if you can’t make your payments, the lender has the right to take your car back.

Since car title loans are sometimes only granted for a short period of time, they must be returned within a few months. Depending on the lender, the loan term may change, but it typically lasts between 30 and 90 days.

Car title loans have exorbitant interest rates, implying you will have to pay a high-interest rate on loan. A vehicle title loan may have an interest rate of up to 300%, so it is critical to ensure that you can afford the loan before applying.

Several lenders provide car title loans, which may be found online or at storefront lenders. Some lenders need strong credit, while others may deal with those who have terrible credit.

If you’re considering getting a vehicle title loan, understand how they operate and the hazards. This allows you to make an informed judgment about whether or not this sort of loan is appropriate for you.

How To Use Your Car As Collateral For A Loan In Canada

You may always use your automobile as collateral if you need to borrow money but don’t have other assets to offer as collateral. A vehicle title loan in Canada allows you to use your automobile as collateral for a loan.

A car title loan is a secured loan in which the borrower uses their vehicle as collateral. The lender will put a lien on the borrower’s automobile and force the borrower to surrender the title to the lender

Car title loans are an excellent alternative for borrowers who want funds but lack other assets to use as security. They are also an excellent solution for consumers with poor credit who may be unable to get a regular loan. If you’re considering a vehicle title loan, do your homework and shop for the lowest rates and conditions.

Top 10 Car Title Loans In Ontario

With so many options on the market, determining the best car loan for you can be difficult. To make things easier, we’ve compiled a list of the best car loans in Canada based on interest rates, terms, and other important considerations.

1. Loans From Friends Or Family

When you’re in a hurry, you can consider borrowing from friends or family instead of an outside firm. If you are not comfortable taking the monies as a gift, you might consider drafting a loan contract. You may also attempt to monetize your social network by initiating a non-repayable crowdfunding campaign.


  • Rates and conditions are negotiable.
  • Borrow from someone you trust
  • Optional collateral


  • Personal connections may be jeopardized.
  • You must have relatives or friends that are willing to lend you money.

2. Small Loan From A Credit Union

Local credit unions may make small loans to people with bad credit. They will, however, have stricter eligibility criteria than other lenders, and you may be required to join a credit union. Servus, an Alberta credit union, is an example of a credit union that provides quick small loans.


  • More competitive rates
  • Borrow from a reputable financial institution.


  • It isn’t easy to locate
  • Stricter eligibility criteria
  • A credit union membership may be required.

3. Pawn loans

Pawn loans are secured by something you own, such as jewelry, electronic tools, or musical instruments. The amount you can borrow is typically between 20% and 60% of the asset’s resale price.


  • Instead of using your car as collateral, you can use another asset.


  • Rates of interest can range from 5% to 30%
  • Losing your asset could be a risk

4. Installment loans

An installment loan is a personal loan provided by online lenders with smaller loan amounts, higher interest rates, and less stringent qualifying standards than conventional personal loans.

Borrow a sum that you will repay in installments with interest over time. When you apply, lenders will look at your credit score, but they will be more concerned about your capacity to repay the loan.


  • There is no requirement for collateral.
  • Bad credit is taken into account
  • Loan amounts of up to and including $15,000
  • Get a payday loan within 24 to 48 hours.


  • Interest rates can range from 18% to 47%

5. Payday loans

Paycheck loans are modest loans of up to $1,500 that the next payday must repay. In contrast to automobile title loans, no collateral is required. On the other hand, payday loans are extraordinarily costly, with APRs in the triple digits, and they should only be used as a last resort.


  • Same-day financing is available.
  • There is no danger of losing your vehicle.
  • There are more internet choices than title loans.


  • APRs may be greater than for title loans.
  • Title loans have lower loan amounts.
  • It is pretty simple to become caught up in a debt cycle.

6. Credit card cash advance

You may acquire a cash advance as soon as you arrive at an ATM if you already have a credit card. Advances have higher APRs than standard credit card purchases, but they are frequently far cheaper than any other short-term lending product, with rates beginning at approximately 23%.

You will also be charged a cash advance fee, usually a modest percentage of the borrowed amount.


  • More quickly than a title loan
  • No security is needed.
  • APRs are lower than for other types of short-term lending.


  • You must already have a credit card.
  • In addition to interest, there is a cash advance cost.
  • Lower loan amounts are offered than with title loans.

7. LoanConnect

LoanConnect is another online loan search business that has provided one of Canada’s top vehicle offers since 2016. In reality, this company works as a link between payday lenders and banks.

You can rely on LoanConnect to provide you with many loan options, including a vehicle loan, in as little as a minute (as stated on their site).

Furthermore, regardless of credit score, the site is well-known for aiding Canadians in locating low-interest loans of up to $50,000.

According to several consumers, LoanConnect’s platform is straightforward and handy for online usage, and you may complete the entire application process in as little as five minutes.


  • There are only a few eligibility requirements to meet (bad credit, no history, low income)
  • Loans of various types are available.
  • Quick loan application online


  • An origination charge of roughly $100 is possible.
  • You have a few options/lenders to choose from.

8. Car Loans Canada

Car Loans Canada acts as a loan connector. They don’t offer loans but will use your information to connect you with the right lender. They have access to a wide range of lenders in nine Canadian provinces.

But don’t worry if your credit score isn’t good enough to prevent you from getting Car Loans Canada.

Because more than half of the people approved (more than 50%) have poor or bad credit. This loan platform’s best feature is that you can be pre-approved for bad credit loans in just a few moments.

Car Loans Canada can help you if you are unsure of your credit history. They are partnered with the best credit-reporting agencies like Equifax or TransUnion.


  • Pre-approval is possible without a SIN
  • A one-stop shop service that compares multiple lenders
  • You can use the car loan calculator


  • Canada has a limited availability
  • There may be additional fees

9. goPeer

Toronto-based peer-to-peer lender goPeer facilitates loans for creditworthy borrowers by connecting them with investors. They provide Canadians with a new borrowing climate where they can borrow and lend money.

How is this possible? Investors assume the role of the lender by financing all or part of the loans requested by borrowers.

GoPeer is a positive feature that allows investors to earn interest on the original amount borrowed while the borrowers get the funds they need.

If you are applying for a peer-to-peer loan through them, ensure your budget is in order, and you have sufficient savings.

It is easy to use and requires only registration on goPeer. It is easy to submit your application online from the comfort of your home in just a few minutes.

Follow their instructions and receive one of Canada’s lowest auto loan rates.


  • Quick loan processing
  • No hidden or prepayment penalties are charged
  • Online instant quotes are instantly available


  • Eligibility criteria must be strict
  • This is a relatively new platform for car loans

10. LendingArch – CarsFast

CarsFast is an online tool that allows you to compare financing options for your auto loan. It offers free services that allow you to compare rates with pre-approved lenders. You can submit an application and view automobiles for sale by 15.000+ dealers.

This explains why Canada has a large client base with 350.000+ verified customers. Plus, you have 350 dealer connections to help you get an auto loan.

But that’s not all. It will be a pleasure to learn that you have been connected to a loan comparison platform, which is listed as one of the fastest growing businesses in The Globe and Mail’s 2020 Report on Business.

You can apply for these car loans: pre-owned/new car loans, bad credit auto loans, and trade-ins. There are, however, no private auto loans and lease buyouts.

You will also find that it takes only two minutes to apply for a loan with them.


  • 15.000+ satisfied customers
  • Online application is secure and quick
  • Extensive car loan provider network


  • There may be additional fees
  • There are only a few lenders

Read Also:

10 Best Direct Loan Lenders For Poor Credit With Guaranteed Approvals

How To Get A Loan When You Are On Benefits

How To Calculate Payment On A Loan – An Easy Guide


Overall, getting a vehicle title loan is a dangerous business, and it could be worth exploring if you genuinely need the money and have no other choices.

Do your homework ahead of time and look around for the most incredible deals. Also, remember to make all your payments on schedule, or you may lose your automobile.


How Do You Borrow Against A Car?

You should keep a few things in mind if you require a title loan. First, the interest rate will be determined by the credit score of the vehicle. Second, a grace period must be observed before the loan may be accepted.

Third, you’ll need to offer collateral, which is often your automobile or other valued property. Finally, grab an application form and bring it with you when you apply for the loan.

How Can I Use My Truck As Collateral  For A Loan?

To borrow against your vehicle, you must have sufficient equity in your vehicle to support a loan. Many lenders require that you have paid off any previous loans to acquire the car, but others will let you borrow even if you are still paying off a standard auto purchase loan.

What Is A Car Equity Loan?

You may borrow money against the value of your automobile with an auto equity loan. If your automobile is worth $25,000 and you owe $10,000, you have $15,000 in equity that you might borrow against.

How do I Know If I Have Equity In My Car?

To determine your car’s equity, deduct the amount owing on the vehicle from the vehicle’s worth. To determine the worth of your car, utilize a free online assessment tool such as those provided by Kelley Blue Book, Edmunds, or Autotrader.

Can You Borrow Equity From Your Car?

A personal loan enables you to borrow money with no collateral, but an auto equity loan allows you to borrow money against the value of your automobile. While having a secured loan might result in a reduced interest rate, you should weigh the benefits and hazards of a vehicle equity loan before taking one out.

Can You Get An Auto Equity Loan With Bad Credit?

A vehicle equity loan might mean speedy approval for people with weak credit. The bank can assure that it gets its money back since you may use the equity in your automobile as security. Larger loans.

The amount you may borrow, like any equity loan, is governed partly by the amount of equity you have in your automobile.

How Can I Get An Equity Bank Loan For A Car?

If you want to purchase a vehicle, you may question how to secure a loan. There are many methods to get an automobile equity bank loan, but the most typical is a title loan. Many banks provide title loans, which may help you save money on your purchase.

You can learn more from the video below:

About Author

Car Title Loans In Ontario
Lydia Alolade
I am a professional article and e-book writer with 4 years of experience, I write on well research content on cryptocurrency, stocks, loans and finances.

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