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These days, you can buy just about anything online, including cars. Thankfully, certain online platforms are available not just to make the car shopping experience more convenient, but also the process of getting a car loan.
Canada Drives, CarDoor, and Clutch are three online car-buying platforms that are available for consumers looking to make their shopping experience more convenient and hassle-free. But which one is best?
Let’s compare all 3 of them to help you determine which resource to use to find and finance your next car online.
Canada Drives is a BC-based fintech firm founded in 2010 that helps Canadians shop for certified preowned vehicles and secure auto financing to cover the cost of a vehicle. The company works with the specific financial profiles and budgets of consumers to help them get the auto financing they need.
Canada Drives has over 350 Canadian dealerships within its network and connects them to consumers in need of financial assistance to buy a car. In additions to matching consumers with vehicle and financing options that meet their needs, Canada Drives also delivers the vehicles in British Columbia, Alberta, and Ontario.
Rather than dealing with the stringent lending criteria from your bank or negotiating with the dealership for a lower price on your car, Canada Drives can help you avoid all that hassle. They’ll connect you with several certified car dealers all over the country that will pair you up with a vehicle that meets your needs and price point.
Credit scores are not a factor when it comes to getting auto financing with the help of Canada Drives, which is often a barrier for many consumers who may be unable to secure a car loan due to poor credit. Instead, Canada Drives helps all consumers, no matter what their credit score may be.
All that’s required is a quick application process. And before long, the car you want can be purchased and delivered to you in as little as 24 hours.
Follow these steps to use Canada Drives to buy your next car:
CarDoor is an online buying and trading platform for vehicles. Consumers can do their shopping for a car completely online and arrange for auto financing at the same time.
The platform allows shoppers to compare different vehicles side-by-side to help make a more informed purchasing decision. Consumers can even pick their own monthly payments that they are comfortable with, and CarDoor will accommodate their financing accordingly.
Buying and financing a car with CarDoor is easy and requires just three simple steps:
Clutch was founded in 2016 to revolutionize the car-buying experience for consumers. The company helps consumers find and buy good-quality vehicles completely online while avoiding the potentially stressful experience that can often come with shopping for a car at a dealership.
Those looking to sell their car can also use Clutch to find a qualified buyer.
How do Canada Drives, CarDoor, and Clutch compare to one another? Let’s take a closer look at some of the features and benefits of each to help you decide which service to use when it comes time to buy a car.
| Canada Drives | CarDoor | Clutch | |
| Car Financing Offered | Yes | Yes | Yes |
| Warranty | 30-day/1,500 km warranty | 90-day/10,000 km warranty | 90-day/6,000 km warranty |
| Test Drive Available | 7 days | 14 days | 10 days or 750 km |
| Car Delivery to Door | Yes | Yes | Yes |
| Trade-In | Yes | Yes | Yes |
Generally speaking, there are two main ways to finance a car purchase, auto loans or dealership financing.
You can approach your bank for a car loan or use an alternative online lender to finance your next car purchase. Ideally, you’ll already have your financing lined up before you agree to buy a car. That way, you’ll know how much you can afford and get approved for before going through the process of buying a car.
The lender will likely want to assess your financial and credit strength by looking at your credit report and income.
Getting financing directly through a dealer is more convenient, but you might not get the best deal. You may actually find a significant difference between an auto loan from a lender versus what your dealer will offer you. That’s because dealers go through an external financial institution and then charge a little extra on top of the lender’s interest rate to make a profit.
If you decide to buy a car online, be sure to consider these tips to help you avoid the pitfalls of online car shopping and score the best deal for you.
Look for cars of the same make, model, and year as the ones you’re interested in buying and compare their prices from different sellers. A couple of good resources are the Canadian Black Book and CARFAX for information on the current market value of vehicles.
Take your time browsing vehicles online. This is not a small purchase. You’ll be committing yourself to a hefty payment when you agree to buy a car, so don’t rush through yourself.
Some online sellers might not be very transparent when it comes to the condition of their vehicles. To protect yourself, consider asking a mechanic to inspect the vehicle and run a VIN check with a CARFAX or other similar company to verify the history of the car you’re interested in.
When it comes to buying a car online, Canada Drives, CarDoor, and Clutch are the best options for Canadian consumers. So how do you choose between them? Focus on the vehicles available and whether or not you can find that meets your needs. The financing options available to you. Which platform is giving you the best deal? And finally, whether or not they deliver to you area.
Rating of 5/5 based on 4 votes.
Lisa has been working as a personal finance writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same.
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