Auto Capital is a familiar name in the Canadian auto loan industry. Being CLA-certified, the company adheres to the best practices in lending. However, while the certification may be reassuring, it is crucial to look beyond the surface to assess whether this lender truly lives up to its reputation. One of Auto Capital’s primary selling points is its ability to offer financing options to individuals with varying credit backgrounds. However, you may ask how does the company compensate for the high risk it undertakes while lending to subprime borrowers? In this review, we’ll delve into the services offered by Auto Capital and review the customer feedback—both positive and negative—and evaluate whether the services provided align with the company’s promises. We will explore whether Auto Capital is truly the right choice for securing an auto loan.
Brief Overview
Auto Capital is known for providing auto loans to Canadians who may struggle to get financing through traditional means. With a focus on second-chance financing, the goal is to help those with bad credit, no credit, or even past bankruptcy. A relatively simple procedure of applying and receiving approval helps borrowers obtain the necessary funds for purchasing a vehicle.
Here’s some key information about the company:
- Official Name: Auto Capital Canada
- Website: www.autocapitalcanada.ca
- Phone Number: 1-855-646-0535
- BBB Rating: A
- Google Reviews: 2.9/5 stars (200+ reviews)
- TrustPilot Reviews: 4.8/5 stars (1000+ reviews)
- Headquarters: Toronto, Ontario
Can Auto Capital Help You Get an Auto Loan?
Yes, Auto Capital is an excellent option to look for auto financing if you’re a Canadian and you have poor credit. Auto Capital works under the guidelines of the Canadian Lenders Association (CLA); hence, they operate under the CLA code of ethics when it comes to lending. The company has dealerships and lenders across the country who help you find the right financing plan based on your situation, credit included.
List of Services Provided
Auto Capital offers a range of services designed to make the process of getting an auto loan as simple and efficient as possible. Here’s a look at the key services they provide:
1. Auto Loans for All Credit Types
Auto Capital specializes in providing auto loans to individuals with a wide variety of credit backgrounds, including poor credit, no credit, and post-bankruptcy clients. Their flexible lending criteria ensure that more people can qualify for a loan, even if they’ve faced financial challenges in the past.
Auto Capital is an auto finance company that offers auto loans to customers who have poor credit, no credit, or have just emerged from bankruptcy. This is because their lending terms are quite broad and many people stand a high chance of availing a loan, even if they’ve faced financial challenges in the past.
2. Fast and Easy Application Process
One of the main benefits of Auto Capital is its simple and fast online application process. Customers can fill out an application on the company’s website and, in many cases, receive approval within 24 hours. This streamlined system allows for quick access to financing, which is crucial for people needing a vehicle as soon as possible.
Auto Capital offers the opportunity to apply online with no hassle, and this is one of the main strengths of this company. Customers can apply online by completing the application form on the company’s website, and most of the time, approval takes less than 24 hours. This means that, it is easy to secure fast-financing, which is crucial for people needing a vehicle as soon as possible.
3. Loan Pre-Approval
Auto Capital provides pre-approval on loans, meaning that a customer can know the amount that they are capable of borrowing. This makes borrowers able to search for the car of their desire with full assurance of approval for a loan to finance the car.
4. Vehicle Refinancing
Auto Capital is also able to assist you if you already have an auto loan by helping you refinance it at a lower interest rate. This choice is best for individuals who would like lower monthly installments or want to clear their auto loan faster.
5. No Down Payment Option
Auto Capital also provides auto loans that do not require a down payment, which is very attractive to borrowers especially those that may not afford to pay the down payment. However, we have to keep in mind that no-down-payment loans can be more costly and would require you to pay more in interest.
Customer Feedback and Reviews
Let’s take a closer look at what real clients have to say about their experience with Auto Capital:
Google Reviews: 2.9/5 Stars
Auto Capital is currently rated 2.9 stars by users on Google reviews. Customers have complained about problems they have faced with regard to refinancing questions and payments, where they have had problems with the contract terms and customer service responses. They also complain about the slow processing of refunds.
TrustPilot Reviews: 4.8/5 Stars
On TrustPilot, Auto Capital has a decent rating of 4.8 stars. The clients often appreciate the company for quick turnaround time in approval and the simplicity of the application. But, a couple of reviews point towards higher interest rates, which are common in second-chance lending.
Advantages of Working with Auto Capital
Working with Auto Capital offers several advantages, especially for individuals who may have difficulty securing financing through traditional banks or credit unions. Here are some of the main benefits:
1. Credit Approvals for All Credit Cases
Auto Capital has built a reputation for offering auto loans to individuals in all sorts of credit situations. This means that no matter your credit score, Auto Capital has got your back as far as financing is concerned.
2. Easy and Quick Application
The application process is quite simple which involves the filling of an online application form where a customer can apply for a loan and get a decision, speeding up the time it takes to get behind the wheel of a new vehicle.
3. CLA Certification
Auto Capital is also a member of the CLA which means they have to follow the regulations set by the Canadian Lenders Association.
4. No Down Payment Required
Another advantage is that you do not need to have cash at the beginning to make a down payment.
5. Refinancing Options
Through refinancing service, Auto Capital enables customers to reduce the current auto loan repayments they make.
Potential Drawbacks of Choosing Auto Capital
While Auto Capital has many advantages, it’s important to consider some of the potential drawbacks as well.
1. Higher Interest Rates
Auto Capital charges higher interest rates than most conventional lenders. This is a typical characteristic of second-chance loans, but it is crucial to know about the expenses you will incur when taking a loan.
2. Limited In-Person Interaction
Auto Capital is primarily an online service. If you prefer having a face-to-face meeting, you might not like the customer support experience.
3. Limited Loan Amounts
Auto Capital may be more restrictive in terms of the size of the loans they offer compared with other larger financial institutions, which constrains the types of vehicles some clients with certain credit histories can purchase.
Final Thoughts: Should You Consider Auto Capital?
Auto Capital is a good option for you if you are searching for a good second-chance financing option. Auto Capital’s multiple products and more importantly, their policy on ethical lending make them a good candidate for anyone looking to finance their next car. With a high rating from hundreds of satisfied customers and a transparent application process, Auto Capital is a trusted name in the second-chance financing space.
Nevertheless, like any financial product, it is wise to compare the rates and terms in order to avoid overpaying.
FAQ
Q: What is Auto Capital’s minimum credit score requirement? A: Auto Capital specializes in second-chance financing, so they don’t have a strict minimum credit score requirement. They work with borrowers with bad credit, no credit, and post-bankruptcy clients.
Q: Does Auto Capital require a down payment? A: No, Auto Capital offers auto loans with no down payment required, though loans without down payments may come with higher interest rates.
Q: How long does the approval process take? A: Most customers receive an approval decision within 24 hours of applying.
Q: Can Auto Capital help me refinance my current auto loan? A: Yes, Auto Capital offers refinancing services to help you reduce your monthly payments or secure a lower interest rate.
Q: Is Auto Capital a CLA-certified lender? A: Yes, Auto Capital is certified by the Canadian Lenders Association (CLA), which ensures ethical lending practices.
Saqib has a Masters Degree from Wilfrid Laurier University in Ottawa. He has a robust background in accounting and finance. Mohammed started his career three years ago working as an investment analyst at a sell-side firm. He has extensively covered publicly-listed companies using fundamental analysis as the cornerstone of his approach. Mohammed has been published on SeekingAlpha, InvesorPlace, Yahoo! Finance and others.
