Largest Subprime Auto Lenders in Ontario: What You Need to Know

Buying a car is a big step, especially if your credit history isn’t perfect. For many Ontarians, traditional lenders can be hard to access if you’ve had late payments, collections, or even a bankruptcy in the past. That’s where subprime auto lenders come in.

 

Subprime lenders specialize in helping people with less-than-ideal credit secure car financing. In Ontario, there’s a growing number of options—some of which are large, well-established lenders that work with dealerships across the province.

 

If you're curious about how it works and who the major players are, here’s a transparent look at the largest subprime auto lenders in Ontario and what to consider before signing a contract.

 

 

What Is Subprime Auto Lending?

 

Subprime auto lending refers to financing offered to individuals with lower credit scores, typically under 650. These loans come with higher interest rates than prime loans because the lender is taking on more risk. But for many, it’s a pathway to car ownership when other options are limited.

 

Subprime lenders often look at more than just your credit score. They may consider your income, employment stability, and debt load to assess your ability to repay the loan.

 

The Largest Subprime Auto Lenders in Ontario

 

Several key players dominate the subprime auto lending space in Ontario. While specific rankings may vary by year or region, these lenders consistently appear among the top providers:

 

1. iA Auto Finance

 

A major player in the subprime space, iA Auto Finance is known for working with dealerships across Ontario. They offer flexible loan terms for customers with a range of credit profiles. They also provide tools to help borrowers understand their payment responsibilities.

 

2. TD Auto Finance (Subprime Division)

 

TD Auto Finance isn’t just for prime borrowers—they also operate in the subprime space, working with select dealers to provide financing options for borrowers who may not qualify for traditional loans. Their brand recognition and customer service infrastructure make them a common choice.

 

3. AutoCapital Canada

 

Specializing in non-prime and subprime auto loans, AutoCapital works with dealerships throughout Ontario. They offer flexible terms, fast approvals, and a borrower-focused approach. Their goal is often to help customers rebuild their credit through successful loan repayment.

 

4. Rifco National Auto Finance

 

Rifco is one of Canada’s longer-standing subprime lenders and is active in the Ontario market. They focus on customers with imperfect credit histories and provide auto financing through a wide network of dealers.

 

5. Carfinco (Now part of GoEasy Ltd.)

 

Carfinco has long been recognized as a leading subprime lender. Now operating under GoEasy Ltd., the company continues to provide financing to those with limited or damaged credit, often with fast turnaround times and simplified application processes.

 

Things to Watch For

 

While subprime auto loans can be a lifeline, it's important to fully understand what you're agreeing to. Here are a few things to keep in mind:

 

• Interest Rates: Subprime loans can carry higher interest rates—often between 10% and 29%. Always ask for the annual percentage rate (APR) and calculate the total cost of the loan over time.

 

• Loan Term Length: Longer terms can reduce monthly payments but increase the total interest paid. Make sure the vehicle's value will last throughout the loan period.

 

• Vehicle Selection: Some lenders have restrictions on the age, mileage, or condition of the vehicles they will finance. This can limit your choices, so it’s good to ask early.

 

• Early Payment Options: Check whether there are penalties for paying off your loan early. Some lenders charge fees, while others offer flexibility.

 

Final Thoughts

 

Working with one of the largest subprime auto lenders in Ontario can be a reliable way to get back on the road—even with a challenging credit history. These lenders have experience working with a wide range of financial situations and offer structured solutions for people who may have been turned away elsewhere.

 

That said, not all loans are created equal. Take the time to compare offers, read the fine print, and make sure the monthly payments fit comfortably within your budget. Owning a car is about freedom and reliability—and your financing should support that, not add stress.

 

If you're ready for a car loan in Southern Ontario, we'd love to help with that! Simply fill in the form below to get started.