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Life is getting pretty expensive these days. The cost of just about everything has spiked, including gas, groceries, and housing. While many Canadians may be weathering this financial storm just fine, many others are struggling.
If that’s you, then you may be looking for some financial help to get you out of a bind. In this case, an auto title loan may be what you need. They’re quick and easy to get, as long as you own a car.
Read on to find out more about auto title loans in Quebec, including how they work and how to get one.
Car Title Loans Quebec Overview
The following chart includes important details about car title loans in Quebec:
| Loan Amount | Up to 50% of the car’s resale value |
| Interest Rate | Higher rates than other types of secured loans |
| Fees | – Administrative fee – Loan origination fee – Title search fee – Car evaluation fee |
| Term Length | 3 months – 3 years |
| Funding Time | Less than 24 hours (if applied & approved with an alternative lender within the same business day) |
Where Can I Get A Car Title Loan In Quebec?
Multiple lenders offer car title loans in Quebec. Here are some lenders available in various cities across the province:
- Car Title Loans Montreal – if you live in Montreal, you can get a car title loan from local lenders such as BHM Financial Group and 514Loans.
- Car Title Loans Quebec City – Max Cash and Cash in 24 are two car title loan lenders available in Quebec City.
What Do You Need To Qualify For A Car Title Loan In Quebec?
Getting a car title loan in Quebec is easier compared to other types of loans since you’re using your car to secure the loan. That said, you still have to meet certain eligibility criteria and submit specific documents to get a car title loan.
Eligibility Requirements For Car Title Loans In QC
- What credit score do you need? You can usually get approved for a car title loan with poor credit since the lender will place more weight on the value of your car. However, the exact credit score minimums will vary among lenders.
- Is there a minimum income requirement? Since you will have to make regular payments toward paying off your car title loan, you’ll likely need more than the minimum wage to support these loan payments. As such, your lender will likely want to see some type of proof of income. The minimum income requirements will depend on the lender, the loan amount, and the car’s value.
- Can you use any type of income? Some lenders might require proof of traditional employment, in which case you may need to supply documents from your employer. Other lenders might accept non-traditional forms of income, such as Employment Insurance (EI) benefits, paternity benefits, disability benefits, pensions, and others.
- Do you need car insurance to qualify? You must have a valid car insurance policy to apply for a car title loan.
- Do lenders accept cars in any condition? Lenders typically have specific criteria that your car must meet for it to secure a car title loan. For instance, the car might have to be in good condition and not have been rebuilt following a previous accident. Further, the car will likely need to meet age and mileage requirements, which impact its value.
- Minimum equity. You cannot have negative equity. You must own your car, which means any previous car loan must be fully paid off.
Documents Required
- Car insurance documents. Your lender will want to see insurance documents from your insurer to prove that the vehicle is adequately protected.
- Personal ID. To verify your identity, your lender will want to see some form of photo ID, such as a passport, driver’s license, or health card.
- Bank statements. To make sure your bank account is active and in good standing, your lender may require bank statements for the past couple of months. These statements will also help your lender verify your account funds and ensure the account is capable of withdrawals and deposits.
- Car title. You will need to supply your lender with vehicle ownership documentation to prove that you are the legal owner of the car.
How Much Money Can You Get Through A Car Title Loan In Quebec?
In general, you can borrow up to 50% of the value of your car. That means the more your vehicle is worth, the more you can borrow.
Your car’s value is based on several factors, including the following:
- Age of the car
- Mileage
- Condition of the car
- History of service and maintenance
- History of accidents or damage
For example, if your car’s resale value is $3,000, you can borrow up to $1,500. On the other hand, if your car’s value is $5,000, the most you can borrow is $2,500. As you can see, the higher the value of your car, the higher the loan amount you may qualify for.
How To Check Your Car’s Value In Quebec?
Since the amount you can borrow on a car title loan is directly tied to your car’s value, it’s worth the time to find out what your vehicle’s resale value currently is.
There are several online resources you can look at to find out what your car is worth based on its make and model, condition, age, and mileage:
- Kelley Blue Book
- Carfax Canada
- Purr
What Happens If You Can’t Make Your Car Title Loan Payments?
If you don’t make your car title loan payments, you’ll be penalized. The severity of the consequences varies depending on how overdue your payments are:
Late Payment Penalty Fees
If your loan payment is late, you may be charged a late payment penalty fee, including interest on the overdue amount. You could also be charged a non-sufficient funds (NSF) fee if there isn’t enough money in your bank account when your lender attempts to withdraw your loan payment.
Car Repossession
If your loan payments are at least 60 to 90 days overdue, your lender may start the process of repossessing your vehicle. In addition to losing your car, your credit score may be negatively impacted.
Car Title Loan Rules And Regulations In Quebec
Businesses in Quebec, including lending companies, must abide by specific rules in terms of how consumers are treated. Lenders who fail to comply with these regulations may face serious repercussions.
As a consumer in Quebec, you should be familiar with your rights, as well as the rules that lenders must follow. To find out what your rights are, contact the Quebec Consumers Affairs office:
| Office de la protection du consommateur 400 Jean-Lesage Blvd., Suite #450 Quebec City, QC G1K 8W4 | |
| Telephone | 418‑643‑1484 or 1‑888‑672‑2556 |
Auto Title Loans Are Expensive: Consider The Following Resources In Quebec Before Applying For One
If you need extra funds for certain expenses such as food, rent, medical treatments, child care costs or some other major expense, check the federal and provincial government for financial support. They often have programs that can help you pay for these expenses, that way more of your income can be used for your other living expenses.
Quebec Social Assistance Program
If you’re considering a car title loan to cover your bills so you don’t miss your payment due dates, you may be eligible for financial assistance through the Social Assistance Program. You may even qualify for specific benefits that can be used to cover the cost of medication, dental care, eye care, and other important needs. The monthly benefit you receive will be based on your specific situation.
Rent Assistance
If you’re having trouble making your rent payments, you may have considered a car title loan to help. But there are programs in Quebec specifically for the purpose of helping residents cover their rent.
The Rent Supplement Program is designed for low-income Quebec households by allowing them to pay rent that is equal to 25% of the total household income. The program pays the difference between the tenant’s payable portion (ie. 25% of their income) and the rent required by the landlord.
Disability Support
Being disabled can make it difficult to hold a job. Before you apply for a car title loan to make up for the lack of income due to your disability, you may want to consider your eligibility for disability benefits under the Quebec Pension Plan. You may be entitled to regular benefits if you are a worker under the age of 65 and have a permanent and severe disability.
Free School Supplies
Sending your kids to school can cost you a pretty penny when considering all the gear required, like backpacks, electronics, and so forth. Rather than put your car on the line to borrow money to cover everything you need for your child to attend class, consider taking advantage of the resources throughout Quebec that offer free school supplies to children.
For example, Sun Youth in Montreal hosts annual school supplies distribution events every August, which provide essential supplies to kids in the Montreal area. The Quebec government also offers a school supply supplement to needy families to ensure all children have when they need to attend school.
Utility Assistance
The cost of home heating continues to increase, leaving lower-income families struggling to pay their utility bills. While a car title loan may be an option to ensure that your bills are paid, you may qualify for assistance to have your utility bill payments reduced thanks to a partnership between Hydro-Québec and Sun Youth. This can help reduce the odds of service interruptions, especially when the temperature drops.
Final Thoughts
If you’re having trouble covering your bills, consider using your vehicle to secure a loan. As long as there’s no outstanding balance due on a car loan, you can use a car title loan to access your car’s equity when you need a little extra cash.
