Canada Drives vs Car Loans Canada: Which Is Better for Canadians?

When shopping for a vehicle or trying to refinance your current car loan, it’s easy to get lost between different online auto finance platforms. Two of the most popular names in Canada are Canada Drives and Car Loans Canada — but they work a little differently.



Here’s a complete breakdown of both companies, how they operate, what to expect, and which one might make the most sense for your situation.

1. Overview

Canada Drives
Canada Drives is an online car retailer and auto financing service. You can apply for pre-approval, get matched with one of their partner dealerships, and even browse available vehicles directly on their site. They also help with trade-ins and delivery in select provinces.

Car Loans Canada
Car Loans Canada works mainly as a referral and loan-matching service. You fill out one application, and they connect you with lenders and dealers that can help based on your credit and income. They don’t sell vehicles directly — their focus is purely financing.

2. How the Application Process Works

Canada Drives:

• Apply online in just a few minutes.
• Get pre-approved before you start shopping.
• Once approved, they connect you with a dealer who finalizes the loan.
• You can often browse vehicles that match your approval amount directly on their site.

Car Loans Canada:

• Fill out one online application.
• Get matched with lenders or dealerships in your region.
• The lender or dealer will contact you to review your application and confirm details.
• Approval times vary depending on the lender, but some claim same-day responses.

3. Credit Flexibility

Canada Drives: Works with all credit types — good, bad, or no credit. They specialize in matching subprime borrowers with dealers willing to approve them, though interest rates can be high for lower credit scores.

Car Loans Canada: Also works with a wide range of credit profiles, from excellent to poor credit. Their lender network includes both prime and subprime financing options.

4. Interest Rates and Loan Terms

Canada Drives:
Interest rates vary based on your credit and the dealer’s lender network. Independent sources list rates ranging from roughly 4.75% to 29.99%. Loan terms depend on the lender but typically range between 12 and 84 months.

Car Loans Canada:
They advertise rates starting from 0% (on promotional offers) up to around 29.99%, depending on credit. Loan terms are generally 12 to 84 months, with flexible payment frequencies (weekly, bi-weekly, or monthly).

5. Coverage Across Canada

Canada Drives:
Available in most major provinces, including Ontario, Alberta, British Columbia, and Saskatchewan.

Car Loans Canada:
Operates in nearly every province, depending on local dealer and lender partnerships.

6. Transparency and User Experience

Canada Drives:
They promote a free, no-obligation pre-approval process. However, some users have mentioned surprise credit checks or aggressive follow-up from dealers. Canada Drives filed for creditor protection and restructured operations in 2023, but they continue to operate under a refined business model.

Car Loans Canada:
Some users report being passed from one dealer to another without clear communication, though others find the process straightforward and fast. Because they are a broker-style platform, the actual terms you get depend on the lender they match you with.

7. Reputation and Reviews

Canada Drives:

• Well-known nationwide brand with mixed reviews.
• Common positives: easy online approval, fast process, and real inventory to choose from.
• Common negatives: hidden credit checks, inconsistent dealer quality, and customer service issues.
• Not BBB accredited but listed on BBB.

Car Loans Canada:

• Smaller but established loan referral brand.
• Reviews are also mixed — some praise quick approvals, others cite poor communication or unauthorized credit inquiries.
• Operates through third-party partners, so experiences vary.

8. Unique Features

Canada Drives:

• You can buy, finance, or sell your car all in one place.
• Vehicle delivery and return options in certain provinces.
• Allows trade-ins and quick vehicle value assessments online.

Car Loans Canada:

• Purely focused on finding financing — no inventory or trade-in process.
• Some lenders offer quick funding or membership perks.
• May include optional services like insurance or credit monitoring.

9. Potential Drawbacks

Canada Drives:

• Rates vary widely between lenders.
• Some customers report confusion over who actually provides the loan.
• Past financial restructuring raises questions about long-term stability.

Car Loans Canada:

• Because it’s a referral service, you may get multiple calls from dealers.
• Limited control over what the actual loan terms are until you’re matched.
• Transparency depends heavily on the lender or dealer you’re referred to.

10. Final Thoughts

If you want a complete end-to-end car buying and financing experience, Canada Drives is the more all-in-one solution. You can apply, get approved, browse cars, trade yours in, and arrange delivery — all from one site.

If you’re more interested in comparing loan options and finding the lowest possible rate, Car Loans Canada offers a simpler, loan-focused approach. It’s ideal if you already have a car in mind or want to refinance.

Pro Tip

Regardless of which you choose, always:

✅ Compare offers from multiple lenders.
✅ Confirm whether they’ll perform a soft or hard credit check.
✅ Read your loan agreement carefully for rates, fees, and prepayment penalties.
✅ Consider refinancing through a specialized lender or marketplace like CarRefinancing.ca to find out if you can get a better rate on your current vehicle loan.