If you live in Ontario and have had a car accident or been in some kind of financial distress, then there’s a good chance you’re familiar with the idea of getting Car Title Loans in Ontario. But maybe you don’t know the details of how it works. This post will explain everything you need to know about car title loans – from how they work, to the risks and benefits, down to questions like “Is it illegal?”
What are Car Title Loans?
Car title loans are different from your standard, cash-for-car loan. They’re typically used in cases where you need to finance a car repair or purchase, but want to avoid paying the large down payment and monthly payments that come with financing from a regular lender. You can borrow up to 80% of the value of your vehicle (plus taxes and fees), and pay that in small installments.
People often get car title loans because they need money quickly to cover essential expenses, like medical bills or emergency repairs on their vehicle.
How Do Car Title Loans Work in Ontario?
If you live in Ontario, there are multiple car title lenders you can apply with. These companies specialize in high-risk loans and have developed their own processes for authorizing, securing, and funding these types of transactions. This is a high-risk industry because the cost of processing these types of loans is much higher than a typical lending arrangement. The companies that take on this risk can’t do it without charging a significant cost for the service.
The process for getting a car title loan is simple. You can apply online or in person, and all you have to do is provide proof of your income, a couple of forms of ID, plus your car title.
You’ll get an estimate for the amount of your loan, which you can accept or decline. If the amount isn’t satisfactory to you, then the lender will request additional financial information to determine what interest rate and corresponding payment schedule work for you.
You’ll then proceed through an authorization process, where you need to confirm that you can repay the full amount within your required timeframe. Once you’ve received your loan, the title lender will contact you to set up the first payment, which is typically the same day.
Benefits of Getting a Car Title Loan in Ontario?
1. If you’re in a bind and need quick cash, car title loans can be ideal. You get the money the same day you apply, which can make them a great option if you have an emergency that requires immediate attention.
2. There’s little credit required to get a car title loan, so they can provide an option for people who haven’t established their credit yet or received low scores from regular lenders.
3. When taking out a car title loan, you don’t need to make a large down payment or pay monthly payments. This can be less stressful than other arrangements and make it easier for people who have lost their jobs.
4. The interest rates are usually significantly lower than what you’d pay for traditional financing, which means that your total loan cost will be much lower.
5. You can get a car title loan in Ontario as long as you own your vehicle, or have the title for it.
6. Since you’re borrowing most of the vehicle’s value, you can have one loan to cover multiple purchases.
7. When you make your payments, the vehicle is properly repaired or gets a new part, the amount you owed will be returned to you.
8. You can get the money back any time you want during your loan term. If you pay off your car title loan early before it’s due, then the lender will send your money back to them and they’ll consider it as a deposit on a new loan.
Top 5 Car Title Loan Providers in Ontario
1. Cash Money Title Loans
Cash Money Title Loans is one of Canada’s leading consumer lenders for car title loans. The company was founded in Toronto, Ontario, and has provided funding solutions to thousands of consumers over the years. It offers all transactions through the use of a computerized lending system that reduces costs and simplifies the process for customers who apply online.
2. Cornerstone Title Loans
At Cornerstone Title Loans, you can get quick cash for your car title loan in one of five states: GA, IL, ME, NV, and TN. The company’s financial professionals know that every customer has different needs, which is why they offer financing solutions in five easy-to-use auto title loan programs to match your individual circumstances.
3. 1st Canadian Cash Services
1st Canadian Cash is one of the top providers of high-risk car title loans in Ontario. The company has a strong reputation for fast, secure processing, which is why they’re one of the most preferred lenders in Canada. It’s easy to apply online, and you’ll receive an instant decision on your loan terms.
4. Coast to Coast Cash Express
Coast to Coast Cash Express is one of the leading providers of high-rate car title loans in Ontario. The company has a dedicated team of financial professionals who have the knowledge and personal experience to evaluate your particular needs. In addition, the company makes it easy for you to get the car title loan that’s right for you by offering their exclusive “Ask Us” service where you can ask questions.
5. United Capital Services Inc.
United Capital Services Inc. provides car title loans in Ontario for the second-best rate in Canada. The company has a strong commitment to customer service, and its loan issuers are friendly and affordable to work with.