If you’re considering auto financing options in Canada, Northlake Financial might have crossed your radar. The firm operates in a competitive auto-lending space where companies are trying to differentiate themselves by offering unique and out-of-the-box services. The company operates as a certified CLA-certified lender, which adds an extra layer of legitimacy to the company’s services. However, how does it stand out compared to its peers in the space? In this comprehensive review, we’ll take an in-depth look at Northlake Financial, exploring its services, application process, customer feedback, and more to help you make an informed decision regarding the selection of an auto-loan provider.
Brief Overview of Northlake Financial
Northlake Financial is a financial services company focusing on providing auto loans to consumers across the country. With its CLA (Canadian Lenders Association) certification, the company is focused on providing safe and secure lending services for people, including those with a poor credit score. The company has developed dealership networks across Canada to make the vehicle purchase easy for customers.
Key Information about Northlake Financial:
- Official Name: Northlake Financial
- Website: https://northlakefinancial.ca
- Phone Number: 1-888-652-5320
- Google Reviews: 4.4/5 stars (700+ reviews)
- Headquarters: Barrie, Ontario
Services Offered by Northlake Financial
Northlake Financial specializes in auto financing and provides a set of related services. They strive to make the cost of cars affordable to every Canadian. Here’s a closer look at their offerings:
Car Financing for New & Used Cars
Northlake provides auto loans for both new and used vehicles. This means that borrowers can choose from a wide range of cars. The company has partnered with dealerships across Canada with the goal of making the buying process convenient for customers.
Bad Credit Auto Loans
The company targets borrowers with below-average credit scores. Since credit risk is high, interest rates for such loans are normally higher. However, Northlake Financial has strategically placed itself in the market as a company that offers loans to customers who are dealing with low credit.
Flexible Loan Terms
Northlake Financial wishes to satisfy the borrowers’ needs by offering flexible loan terms. Depending on the financial situation of the customer or the type of car being bought, the loan terms can be adjusted.
Pre-Approval Process
Borrowers can go through a pre-approval process with Northlake Financial. This way, applicants know how the amount of loan they are eligible for. This makes the process of purchasing a car less time-consuming.
Partnerships with Dealerships
Northlake Financial has been able to partner with several car dealerships across Canada. These partnerships assist customers in swiftly acquiring a car within their financing capacity.
Interest Rates and Loan Terms
Northlake Financial offers its clients attractive interest rates, which depend on the credit score of the client. For those with good credit scores, the rates may be slightly lower than those with a good credit score. This is because the lender assumes higher risk by lending to the subprime borrowers.
Loan terms are flexible, starting from short term loans (36 months) and extending to long term loans (up to 84 months). It’s important to note that while longer terms may reduce monthly payments, they can result in paying more in interest over the life of the loan.
Customer Feedback and Reviews
Based on Google reviews, Northlake Financial has generally received positive reviews from customers.
Google Reviews: 4.4/5 Stars
Northlake has received positive feedback from customers and has a 4.4 rating on Google reviews. Customers commend the ease of application and the process of purchasing a car. Some of the borrowers with low credit scores have said that they were able to avail car financing from Northlake after being rejected by other financial institutions.
Pros of Choosing Northlake Financial
Bad Credit Friendly
Northlake Financial is one of the few lenders that offer vehicle financing to people who have poor or no credit history.
Flexible Loan Terms
Northlake offers flexible loan terms, allowing customers to choose repayment terms as per their financial situation.
Partnerships with Dealerships
One of the core competitive strengths of the company is strong links with dealerships throughout Canada, so borrowers can search for and purchase a car with ease.
Cons of Northlake Financial
Higher Interest Rates for Subprime Borrowers
Borrowers with a bad credit rating have to deal with higher interest rates, leading to a higher cost of loans.
Customer Service Concerns
A common complaint that some customers have had is that it is very difficult to get a timely response from customer service reps especially when dealing with issues to do with loans.
How Northlake Financial Compares to Other Lenders
Unlike traditional banks and lenders, Northlake Financial specializes in offering auto loans to subprime borrowers. Their interest rates may be slightly steep for the subprime borrower; however, they offer a solution for those who other financial institutions have rejected.
In terms of customer service and responsiveness, Northlake Financial could enhance its performance, according to some of the comments. Yet, the flexibility of their loan terms and the system of pre-approval makes them a suitable choice for many in Canada.
Final Thoughts: Is Northlake Financial Right for You?
Northlake Financial provides a realistic option for subprime borrowers who are looking for car financing. The CLA certification adds a level of trust and transparency to their services. For those who have struggled to get auto financing from traditional institutions, Northlake may be the perfect place to go. However, borrowers should note that the interest rates charged on the loans would be higher because of their credit status and would result in higher overall cost of financing.
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.
