Carma Auto Finance is a Vaughan, Ontario lender that built its name on non-prime auto leasing and financing — car loans for people with bruised credit, no credit, or a past bankruptcy. If you’re researching them in 2026, though, there’s a development you need to know before anything else: Carma has sold most of its customer accounts to Axis Auto Finance, and the company’s lending menu now looks quite different from the pure auto-loan shop it used to be. I’ll walk through what changed, what Carma still offers, what its reputation looks like today, and what to do if you hold (or held) a Carma loan.
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Brief Overview
Carma Auto Finance Inc. is a private, non-prime automotive finance company that has been in business since April 2010. It works through a network of independent dealer partners rather than lending to you directly at a branch, and it has positioned itself as an antidote to the high-fee, restrictive contracts common in subprime vehicle leasing.
| Official Name | Carma Auto Finance Inc. |
| Website | www.carmaautofinance.ca |
| Phone Number | 1-866-511-6922 |
| BBB Rating | C+ (not accredited) |
| In Business Since | April 2010 |
| Headquarters | 111 Zenway Blvd, Vaughan (Woodbridge), Ontario |
| Account Status | Most customer accounts sold to Axis Auto Finance Inc. |
The Big Change: Carma Sold Most of Its Accounts
Carma’s own website now carries a prominent notice: most of its accounts have been sold to Axis Auto Finance Inc., and customers looking for information on their loan are directed to Axis’s customer service line. Here’s where it gets messy, and why I’d tell any Carma borrower to spend ten minutes confirming who actually services their loan today: Axis itself sold its entire auto finance business to Fionic Canada Ltd. in December 2024 and has been winding down since. I covered that whole saga in my Axis Auto Finance review, and it’s worth a read if your loan started life at either company.
So a loan originally written by Carma may have changed hands twice. From my time on the sell side, portfolio sales like this are a completely normal liquidity move in non-prime lending — the loans themselves don’t change, only the name on the servicing. But every transfer is a chance for something clerical to go sideways: a pre-authorized debit pulled under an unfamiliar name, a payment posted late, a tradeline reporting oddly. If you have or had a Carma loan:
- Check your bank statements for the current servicer name on withdrawals.
- Confirm your payout contact in writing before refinancing or selling the vehicle — you need to know who issues the lien discharge.
- Pull your credit report and verify the loan is reporting correctly under whichever company holds it now.
What Carma Offers Now
Carma is still operating and still advertising new lending, but the menu has broadened well beyond auto loans:
- Vehicle lease and finance programs for all credit types, through its dealer partner network
- Small personal loans in the neighbourhood of $2,500
- Loans against paid-off vehicles (title loans) around the $10,000 mark
- Home repair loans for homeowners
- Business loans for companies with at least two years of operating history
- Portfolio purchases — Carma buys existing lease and loan books from other lenders and buy-here-pay-here dealers
That last item is telling. A company simultaneously selling its own accounts and offering to buy other lenders’ books is repositioning itself, not just lending. Nothing wrong with that, but it means the “Carma” you apply to in 2026 is a different animal from the auto-loan specialist the brand was known as.
One small diligence note from me, because these details matter: at the time of writing, Carma’s homepage still contains chunks of placeholder “lorem ipsum” text. I notice things like that the same way I used to notice sloppy footnotes in an issuer’s filings — it doesn’t prove anything by itself, but polish and operational discipline tend to travel together.
Reputation and Customer Feedback
The Better Business Bureau profile for Carma Auto Finance currently shows a C+ rating, with the BBB citing a failure to respond to one complaint. The company is not BBB accredited and is listed under the alternate name Option B Solutions.
On broader review platforms, Carma’s customer ratings sit in the low-to-mid four-star range. The positive reviews follow a consistent pattern: approachable staff, genuine flexibility when borrowers hit rough patches, and approvals for people other lenders wouldn’t touch. The criticism is equally consistent — subprime interest rates sting, and reaching customer service about repayment issues has been a recurring frustration, which the account transfer to Axis likely didn’t help.
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👍 What Carma Does Well
- Second-chance approvals. Bad credit, no credit, and post-bankruptcy applicants are the core clientele, not an afterthought.
- A human touch. Reviews repeatedly mention staff who work with borrowers through job losses and accidents rather than escalating straight to collections.
- A long track record. Fifteen-plus years in a niche where lenders come and go is not nothing.
- Flexible structures. Lease and finance options can be shaped around a borrower’s budget and situation.
👎 Where Caution Is Warranted
- A C+ BBB standing with an unanswered complaint on file — a step down from where a lender courting new customers should sit.
- The account sale creates confusion. Loans have moved to Axis, and Axis’s book has since moved to Fionic. Servicing clarity is on you to chase.
- Expensive money. Subprime pricing applies across the menu; read every rate and fee before signing.
- Title loans are a hazardous product. Borrowing against a paid-off vehicle can cost you the vehicle. The Financial Consumer Agency of Canada’s title loan guide is blunt about the interest, the fees, and the GPS/immobilizer devices some lenders install — read it before you pledge your car.
- Website polish is lacking, with placeholder text still live on the homepage.
Alternatives Worth Comparing
Given the transition Carma is working through, I’d shop this one against at least two or three live alternatives before committing. A broker platform like CompareHub gets you multiple non-prime auto offers from one application. Among the lenders I’ve reviewed individually, Econommi and Western Auto Group serve a similar bad-credit auto niche, while LendCare covers point-of-sale and vehicle financing at scale. And if what you actually need is a small amount of fast cash rather than a car, don’t reflexively reach for the most expensive shelf — my guide on payday loans in Canada and their better alternatives walks through cheaper routes first.
Final Thoughts: Should You Choose Carma Auto Finance?
Carma is a legitimate, long-standing company, and plenty of borrowers credit it with approvals and patience they couldn’t find elsewhere. But I review lenders the way I used to review stocks: on where they are now, not where they were. Right now, Carma is a business in transition — its legacy accounts sold off, its product menu spread across personal, title, home repair, and business loans, and a C+ BBB grade it hasn’t cleaned up. If you apply, get every term in writing, confirm exactly which entity will hold and service your loan, and compare the offer against at least two active competitors. If you’re an existing borrower, your homework is simpler but urgent: find out who owns your loan today, and get it in writing.
Bottom line: check your options now.
If you want one place to start, CCC is a strong option. You can get a clear recommendation based on your situation, and whether the best fit is a DMP or a principal-reduction route like a consumer proposal, they can help you move forward without bouncing between random companies.
FAQ
Is Carma Auto Finance still in business?
Yes. The company is still operating and advertising lease, finance, personal, title, home repair, and business loans. However, most of its existing customer accounts have been sold to Axis Auto Finance.
I had a Carma loan. Who do I contact about my account?
Carma directs account inquiries to Axis Auto Finance’s customer service. Because Axis subsequently sold its auto finance business to Fionic Canada in December 2024, confirm your current servicer in writing and check that your credit report reflects the loan correctly.
Does Carma work with bad credit?
Yes. Second-chance financing for poor credit, no credit, and post-bankruptcy applicants remains the company’s core focus.
What are Carma’s interest rates like?
Rates are risk-based and land in subprime territory, meaning well above bank pricing. Exact figures depend on your file, so get the full rate and fee schedule in writing before signing.
Are Carma’s title loans a good idea?
Treat them as a last resort. Loans secured against a paid-off vehicle carry high costs and put your car at risk if you default — review the federal guidance on title loans before pledging your vehicle.
Mohammed Saqib has a Masters Degree from Wilfrid Laurier University in Waterloo. 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.
