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📅 Last Updated: October 25, 2023 ✏️ Written By Lisa Rennie 🕵️ Fact-Checked by Priyanka Correia, BComm
Source: BC Business Practices and Consumer Protection Act
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Many residents of BC are feeling the pinch as a result of the soaring cost of living. If you fall under this category, you may be finding it more difficult to keep up with your bills. And at some point, you may find yourself in need of a little financial help.
If so, a car title loan may be something to consider. These loans are easier to get approved for compared to traditional loans, and you can often get your hands on your borrowed funds within hours.
Let’s get into more detail about car title loans in BC and how to qualify.
Car Title Loans BC Overview
The following chart details the costs, terms, and funding time of car title loans in BC:
| How Much Can You Borrow? | – Up to 50% of the car’s value, though the exact amount will vary by lender. |
| Interest Rate | – Rates vary by lender and the borrower’s financial and credit profile. – Rates are generally higher than other secured credit products. |
| Fees | – Lenders may charge a variety of fees including administrative fees, car title search fees, installation fees for a GPS tracker, vehicle inspection fees and more. |
| Term Length | – 12 to 60 months. |
| Funding Time | – Varies by lender, but some offer funding in less than 24 hours. |
Where Can You Get Car Title Loans In BC?
Many BC lenders offer car title loans in cities across the province, including the following:
Car Title Loans Vancouver – If you’re looking for local car title loan providers in Vancouver BC, you’ll have plenty of options. Some good car title loan lenders in the area include: Mr. GOOD Loans, Get Loan Approved, and Snap Car Cash.
Car Title Loans Victoria – There are many car title loan providers in BC. For example, if you live in Victoria, BC, you can get a car title loan from Cash Advantage, Canadian Title Store, and Car Title Loans Canada.
Car Title Loans Kelowna – While the population in Kelowna is much lower than in the big city of Vancouver, you can still find many local car title loan providers. ULoan Canada, Pit Stop Loans and Instant Cash Canada all provide loans to residents of Kelowna, BC.
What Do You Need To Get Car Title Loans In BC?
It’s easier to get approved for a car title loan in BC compared to other loan types, particularly unsecured loans. As long as you own the vehicle outright with no remaining loan balance, you can use your vehicle as collateral to back your car title loan. That said, there are still some eligibility requirements that must be met and documents to provide to your lender to get approved.
Eligibility Requirements
- Income. Your lender may require proof of income to show that you can comfortably cover your loan payments. The minimum income requirements will vary depending on the lender, the amount you need to borrow, and your car’s value.
- Car insurance. You must have an active auto insurance policy on the vehicle that is backing the car title loan.
- Vehicle condition. Lenders usually have specific criteria that the vehicle must meet that directly affect the vehicle’s value, such as the car’s age, condition, and mileage.
- Equity. You must own your vehicle outright. That means you cannot have any remaining loan balance on a previous auto loan.
Do You Need Good Credit For Car Title Loans In BC?
Unlike traditional loans, you can get approved for a car title loan with bad credit. That’s because the loan is secured by your vehicle. That said, a higher score can help you qualify for a lower interest rate.
Documents Required
- Personal identification. Your lender will want to see some form of government-issued photo ID, such as a driver’s license, health card, or passport.
- Insurance documents. Proof of insurance will be required to show your lender that your car is adequately protected.
- Bank statements. Your lender may want to verify that your bank account is active and in good standing, which is why they may request bank statements.
- Car title. You’ll need to prove that you are the rightful owner of the vehicle, which you can do by showing the lender your vehicle permit.
How Much Can You Borrow Through Car Title Loans In BC?
The amount you can borrow varies by lender and the value of your car. Most lenders allow borrowers to borrow up to 50% of their car’s value. For example, if your car is worth $18,000 according to the current market, that means you can borrow up to $9,000 on an auto title loan.
The value of your car is based on several factors, including the following:
- Age of the car
- Vehicle condition
- Mileage
- Accident history
- Car make, model and brand
How Can I Calculate My Car’s Market Value?
The more your car is worth, the more you can borrow against it. As such, you’ll want to determine the value of your vehicle before applying for an auto title loan in BC, which you can do using the following online resources:
- Kelley Blue Book
- Carfax Canada
- Purr
What Happens If You Can’t Pay Back Your Car Title Loan?
If you don’t repay your auto title loan by the due date, the following could happen:
You’ll Pay Late Payment Penalty Fees
Your lender may charge you interest on your overdue payments and other late payment penalty fees. You could also be charged NSF fees if there’s not enough money in your bank account when your loan payment is due.
Your Vehicle Could Be Repossessed
If your loan account is overdue by at least 60 to 90 days, your lender could take steps to seize your car. Plus, your credit score could take a big hit due to loan default.
How To Protect Yourself From Car Title Lenders: Rules And Regulations In BC
BC is one of a few provinces with high-cost credit regulations that certain lenders (including car title loan lenders) must comply with. In BC, a high-cost credit product is one that comes with an annual percentage rate (APR) of least 32%. Any lender that offers this type of product is required to adhere to the High-Cost Credit Products Regulation under the Business Practices and Consumer Protection Act in BC.
| Max Interest Rate | In BC, there is no maximum interest that a high-cost credit lender can charge, as long as the APY does not exceed 60%, as per Section 347 of the Criminal Code. |
| Fee Caps | While there are no provincial caps on fee charges, there are federal rules. The total fees, cost and interest of a high-cost personal loan cannot be more than the criminal interest rate of 60% APY. |
| Do Lenders Require A License? | High-cost credit lenders must be licensed in BC and comply with requirements under the Business Practices and Consumer Protection Act. This license number must be clearly displayed on the high-cost credit lender's storefront or website. |
| Debt Collection Rules | When collecting debt, high-cost credit lenders have rules to follow under the Business Practices and Consumer Protection Act. Lenders cannot: - Collect a debt payment before the due date. - Require information that would give the lender direct access to a borrower's bank account. - Use account information for any purpose other than to process a pre-authorized payment. - Use threatening, intimidating or coercive language in an attempt to collect unpaid debt. - Communicate with the borrower's family, neighbours, friends, or employer in a manner that is considered harassment. - Collect debt payments until the borrower has been informed in writing. - Communicate with a borrower to collect a debt until five days after written notice has been provided. |
For more information on what businesses in BC can do, reach out to your provincial Consumers Affairs office:
| Consumer Protection BC 3600 Uptown Blvd, Suite 321 PO Box 9244 Victoria, BC V8W 9J2 | |
| Telephone | 604‑320‑1667 1‑888‑564‑9963 |
| info@consumerprotectionbc.ca |
Alternatives To Consider Before Applying For A Car Title Loan In BC
The rates on auto title loans make these types of financing products very expensive. Before you apply for an auto title loan, consider these community resources first:
Healthy Kids Program
If you’re a parent who needs extra cash to help cover dental costs for their child, consider the Healthy Kids Program in BC. It provides up to $2,000 in coverage for basic dental needs such as exams, x-rays, cleaning, fillings and extractions. It also provides coverage for prescription eye glasses and hearing instruments like hearing aids.
Income Assistance
You may qualify for provincial income assistance if you’re in financial need while looking for employment. Income assistance payments are made every month to qualifying BC residents.
Rent Assistance
The Rental Assistance Program (RAP) provides low-income individuals and families with monthly assistance to help cover rent payments. Benefit amounts range from $1,067 to $1,250, depending on the location of the home and size of the household.
Disability Support
Disability assistance is available to eligible residents in need of financial or medical support. You must be classified as a Person with Disabilities (PWD) to qualify for disability assistance.
Food Banks
If food is a major income drainer, consider covering part of your groceries through food banks. Then you can use the income saved on groceries for other essential needs.
Final Thoughts
If you own a car that’s not financed, you might be able to use it to secure a car title loan. This type of financing is relatively easier to qualify for, so you don’t need good credit. And if you need fast cash, the funds from a car title loan can be accessible in as little as a few hours. As long as the car isn’t financed, you can use it to borrow fast to cover a host of expenses.
Frequently Asked Questions
Can I get a car title loan on EI?
Yes, some lenders may approve you for a car title loan on EI. Depending on the lender, they may approve you for a loan whether your income comes from a traditional job, self-employment, or even a non-traditional source, such as government benefits.
Can I get a title loan on a car that’s financed?
No, your car cannot be financed. Any auto loan that you had on the vehicle must be fully repaid before you can qualify for a car title loan.
Can I get a car title loan in BC with bad credit?
Yes, you can still get approved for a car title loan despite having bad credit. Many lenders in BC offer car title loans to bad credit borrowers.
How fast can I get a loan through an auto title lender?
In many cases, you can get approved and funded for an auto title loan the same day you apply. In other cases, it may take 24-48 hours.
