Based in Ontario, Clutch is a car financing and buying service created by Steven Seibel in 2016. Their goal is to provide a stress-free experience for Canadians who are looking to purchase used cars online.
Check out the Clutch website to view and compare 1000+ certified vehicles offering service to those in Ontario, Nova Scotia, New Brunswick and Prince Edward Island.
What Does Clutch Offer?
As one of Clutch’s many consumers, you can buy, sell, or trade in your car online. They also offer their clients the option to finance their car through Clutch.
Buy
If you want to buy a car upfront, Clutch allows you to do it entirely online. Just make an account, pick your vehicle and go through the validation process. Afterward, a Clutch Customer Advisor helps you complete the required paperwork and organize pick up or delivery to your address.
Sell
You can also use Clutch to sell your existing car. Add a few quick details about your vehicle and you will receive a firm offer instantly. If you accept, they’ll arrange for the car to be picked up or you can drop it off at one of their locations. Instant payment is available for most transactions. Otherwise, it may take up to three days via EFT.
Trade
If your second-hand vehicle has adequate value, Clutch may even let you trade it in. You can get a firm offer using their online calculator. Like selling a vehicle, you would simply need to get a firm offer and arrange a pick-up. The money you get from the trade-in can then be used towards your new car purchase, which will also save you a decent amount of money in taxes.
Finance
Since many drivers can’t afford to buy a car upfront, Clutch also features loans for vehicle financing. Applying is easy and getting prequalified only takes 10 minutes and has no effect on your credit score. Plus, Clutch charges zero hidden fees and offers some of the best interest rates on the market.
Financing Your Car With Clutch
Clutch financing allows you to cover the cost of your car using an installment-based loan. While you have to qualify for and eventually pay back that loan, this often makes the car buying process more affordable.
Here’s how Clutch auto financing works:
- Prequalify – Click “Get pre-qualified” and enter the required information to see if you would qualify for a loan that appeals to you. As mentioned, this won’t affect your credit and it shouldn’t take long to get an estimate (keep in mind that the figures you receive may not be the final costs and conditions of the loan).
- Choose Your Car – Remember, there are roughly 700+ cars in Clutch’s inventory at any given time, so it’s best to compare several makes, models and prices before making your choice. Don’t just pick a car that looks great. Make sure it’s reliable, cost-effective when coupled with your loan and has all the features you want.
- Apply For Financing – Once you’re satisfied with your estimate and choice of vehicle, the last step is to apply for your loan. This can be done 100% online through Clutch who is partnered with major lenders like TD, BMO, Scotiabank, and Desjardins. If approved, you’ll receive your funds and payment plan within a few days.
Clutch Financing Requirements
While your SIN# is optional when you apply for Clutch financing, there could be other documents and personal details required, like your:
- Name
- Date of Birth
- Address
- Province
- Income & Banking Information
Additionally, when a Clutch service representative delivers the vehicle and loan contract to your residence, you’ll have to present a:
- Valid driver’s license
- Direct deposit form or VOID cheque from your designated bank account
- Copy of a new car insurance policy with the borrower’s name indicated on it (sent by fax or email)
Learn more: How To Buy Car Insurance
Benefits Of Clutch Financing
There are plenty of positive things about Clutch financing, including:
- Fast & Easy Approval – Clutch accepts drivers from all walks of life, so you don’t necessarily need a great income or credit score to qualify for a loan. Basically, if you’re able to make payments on time, getting approved shouldn’t be too difficult.
- Zero Hidden Fees – Although you may have to pay service fees once you begin your payment term, Clutch will always inform you about every cost associated with your financing plan before confirming your car loan.
- Best Interest Rates – When you apply for a car loan through Clutch, your bank picks the interest rate that you qualify for. Applicants with good credit scores and high incomes can typically qualify for prime rates, which vary based on what is set by the Bank of Canada.
- No Social Insurance Number (SIN) Required – Unlike other vehicle services, which take ages to apply with, Clutch only requires the most relevant personal and financial information for approval (but your SIN may speed up the process).
- Open-Ended Terms – Clutch accepts any amount for down payments and loans are open-ended, meaning you can pay them at any time, penalty-free. Payments can’t be reduced, but you can ask your bank for larger installments to pay your debt faster.
- Flexible Payments – Before confirming your loan, you can also pick a payment frequency that works for you (bi-weekly, monthly, etc.). Every bank sets its own rules, and you’re often allowed to change your payment date with prior notice.
The Cost Of Financing A Vehicle With Clutch
Prior to financing a vehicle through Clutch, don’t forget that the sales prices you see on their website don’t include the taxes that get added to your final bill. Here are some other important costs to consider when financing a car with Clutch.
- Interest Rates – Your rate can vary based on numerous factors, such as your credit score, payment history, gross income, vehicle type and financing amount. Clients with stronger finances will normally qualify for lower rates and vice versa.
- Financing Amount – With Clutch, the minimum amount you can apply for in car financing is $7,500 after taxes. While you can offer a down payment once you surpass this limit, the price may still be higher than some clients can afford.
- PPSA Fee – A “Personal Property Security Act” fee is what banks charge to register a loan financing contract. The size of the fee depends on where you get your loan and how long your term is, but generally ranges from $55 – $170.
- Car Prep Fee – Another major cost you could encounter when you finance with Clutch is a vehicle preparation fee of $899, which is applied to vehicles sold in Atlantic Canada. When you look through Clutch’s inventory, the Car Prep fee is disclosed in each vehicle’s pricing section.
How To Buy Your Next Car With Clutch
Even if you aren’t interested in financing your next car purchase with Clutch, you can still find and purchase an affordable vehicle in Clutch’s inventory. Clutch prices are non-negotiable but very competitive.
When browsing vehicles, there are several filters to choose from too, including:
- Price
- Payment Method
- Make
- Model
- Color
- Body Type
- Mileage (in KM)
- Fuel Type
- Drivetrain
- Transmission
- Cylinders
All of Clutch’s vehicles have passed a 210-point inspection and come with a clear title, as well as zero reported fire, flood or frame damage. By eliminating the overhead charges associated with the average car dealership, Clutch’s great pricing is also due to their business policy: price competitively and sell fast.
Clutch Delivery Service
Clutch offers delivery to your door, which comes at an additional fee. This fee changes based on your distance from their location and may not be available for all areas.
A few hours before delivery, a Clutch Concierge will call you to confirm that you’re home (anyone involved in the agreement must be present during delivery or pickup). Similar conditions apply to financing, only you’ll also be contacted by a Credit Manager to lock in your payments and interest rate.
Learn more: Everything You Need to Know Before Buying a Car Online
Selling Your Used Car Or Trading It In With Clutch
Remember, if your current car has value, Clutch may buy it from you or let you trade it in for a lower price on your next car. Here’s how it works:
- Get An Instant Offer – The Sell or Trade tool will give you a firm offer for your vehicle. It will be generated instantly after you enter a few details about your car.
- Complete the Transaction – When you meet to sell your vehicle to Clutch they will inspect the car to ensure it is in the condition you disclosed. If there are any large discrepancies, they may adjust your offer. If you accept it, they’ll take possession of the vehicle and pay you on the spot.
Benefits Of Selling Or Trading Your Car With Clutch
There are several benefits to doing a sale or trade-in with Clutch, such as:
- Instant Offers – Their firm offers make it easy to decide whether selling or trading your car is worth the money and effort before you commit to buying or financing another one.
- Trade-Ins Accepted – Clutch takes trade-ins when other car services won’t. Whether you are selling or trading your car, you will get the same offer amount.
- Firm Offers & Pickups – When a Clutch specialist makes an offer on your car for sale or trade, that’s the price you’ll eventually get.
Clutch Care Protection Plans
Another great thing about Clutch is that they offer guarantees when it comes to the safety and satisfaction you receive upon buying or financing a car:
- Refund Period – Every vehicle from the Clutch inventory comes with the option of a 10-day or 750 km grace period, during which you can return your car without penalty.
- Limited Warranty – Once your car purchase or financing plan is confirmed, you’ll also get a 3-month (or 6000 km) warranty, although it is only available with select packages. This warranty gives you roadside assistance and covers repairs, replacements, rental car fees and partial tow costs caused by most manufacturer defects, including:
- Engine
- Transmission
- Axles
- Brakes
- Fuel System
- Suspension
- Electrical Components
- Optional Extended Warranty – If you’re worried about car problems after three months, you can pay for a warranty that covers those same issues for up to 8 years.
Vehicle Protection Plan
Clutch’s 3-month and extended warranties provide basic coverage for most vehicle problems that you aren’t responsible for. However, they don’t cover:
- Components that wear down or get replaced with general maintenance
- Interior or cosmetic issues that don’t affect the car’s performance or safety
- Recommended or scheduled maintenance, repairs and servicing
- Aftermarket accessories or parts that aren’t produced by the manufacturer
Luckily, thanks to the First Canadian Protection Products company, you can secure even better coverage through a Clutch Vehicle Protection Plan. This increases the coverage you get from a basic warranty to include more unexpected costs, like:
- Hotel expenses following trip interruptions
- Wheel damage from road hazards (nails, potholes, etc.)
- A larger variety of internal issues (timing belt/chain, emission system, etc.)
Visit the Clutch website to find a full coverage list for the Clutch Vehicle Protection Plan.
GAP Insurance
If your car gets stolen or written off, Guaranteed Auto Protection (GAP) insurance can cover the difference between your insurance policy payout and whatever loan debt you have left owing on the vehicle, and any deficit transferred from past loans.
Example:
- You have $20,000 left to pay on your car loan
- Based on the car’s appraisal value, your insurance payout is $10,000
- Clutch GAP insurance will cover the remaining $10,000 of loan debt
Learn more: Gap Insurance For Your Vehicle
Undercoat Protection
Driving in Canada can lead to a multitude of car body issues, like rust. That’s why Clutch also offers Undercoat Protection, which is a clear, wax-based coating that helps preserve the vehicle’s paint against moisture and road salt using a one-time spray.
Along with that, you’ll receive the following guarantees:
- Only one application and no drilling necessary
- 10-year guarantee for current-year model cars
- 6-year guarantee for older model ca
- Guaranteed transfer after you sell the vehicle
Looking For Your Next Used Car?
Then Clutch might be the perfect vehicle financing and buying service for you. Check out their website for more information about the cars, prices, payment options and protection plans they offer. They’re safe, flexible, and affordable.
