Car Title Loans in Ontario – Are They A Scam?

Car title loans in Ontario are in fact not a scam. Although they may seem like a scam, and have higher interest rates than personal loans they are another tool for consumers to use to borrow money.

There are many consumers in Ontario who do not have the equity in their homes to use to post for a secured loan or mortgage, or their credit rating is not sufficiently high for a lender to lend them money on a personal loan basis. They’re viewed as to high a credit risk.

Basically, a consumer who owns a vehicle can use his vehicle as collateral provided that he has sufficient equity in his vehicle to support the loan on a secured basis. For example this consumer has filled out an application for a car title loan and has a vehicle that he claims is worth $25,000. He did not state whether there was any loans against the vehicle or how much equity he has in the vehicle. We will need more information before proceeding on this particular loan.

For example, if his vehicle is worth $25,000 and he only has a $5000 car loan remaining against it, he has  $20,000 equity in the vehicle which can be used to support a car title loan. The interest rate will be higher than a personal loan, particularly the personal loan that is secured by equity in a home for someone who has an excellent credit rating. With the car title loan, the credit rating is not a factor.

As with all industries, the car title loan business is competitive and consumers should always shop around for a car title loan and obtain the best interest rate they can find and also the best terms and conditions. Look at the total cost of the car title loan in terms of interest charges, fees and any other charges that are levied before making a decision with regards to a car title loan.

Loan Amount :: $8,000

Loan Application and Processing Speed (when do you need the funds):: within two weeks

Do you currently have a mortgage? :: no, I currently rent a townhouse

Bank Name and Branch :: Bank of Montreal. Quellette St

What City/Town, State and County do you live in? :: Windsor, Ontario, Canada

Zip ::N8X 3Y8

What is your employment field? :: I work for one of the big three automakers in Windsor Ontario

Employment Position :: Assembly line supervisor

When are you paid? (monthly/weekly/biweekly):: biweekly

Your credit rating to be – excellent, fair, or bad? :: fair

How did you find us? :: looking for a loan applications online and wondering if car title loans are a scam in Ontario

How are you paid? (direct deposit/paper check):: direct deposit into a joint checking account with my wife

Gross Amount Per Paycheck ::$2269

Do you agree to have this information published online, without your PRIVATE information of course? :: no problem

Extra information here please (some detail):: I have spent the last few days browsing the Internet looking for possible companies that would lend me $8000. I have seen quite a few advertisements for car title loans and I’m wondering if car title loans are a scam in Ontario?

Basically I need $8000 to repay a small amount of debt that I have, which is a combination of credit card debt and also $1000 that I owe too buddy. I was temporarily laid off from one of the big three auto companies here in Windsor Ontario and did not have any savings to rely on. I had to use my credit cards and borrow this money from a friend to survive until I was rehired.

I should have known better because this sort of thing happens quite often in the auto industry. If they do not have enough demand, or they are changing over model years and retooling the assembly line quite often many people are temporarily laid off until work is completed or until the demand picks up. This was my situation.

Note to Lender :: in the future I will make sure that I have some savings to rely on for situations such as this. In the meantime I have this $8000 that I need to repay, and particularly the $1000 I owe to my buddy. I would like to pay him off first since he helped me out. I work as an assembly line supervisor and other than temporary layoffs like the one I just had I have full-time employment.

I have a pretty good idea when the next model turnover will be and how much money I need to save to survive during the downtime. I have already started putting some of this money away for that period.

In the meantime can you help me with a personal loan, or a car title loan so that I can repay my credit card debt and my buddy. The Car I drive is a 2011 Buick, which is worth approximately $25,000. It is in excellent shape and worth much more than the car title loan that I’m asking for. Please advise if you can approve this personal loan and also answer my question regarding whether car title loans in Ontario are in fact a scam or are they have a cheaper way of borrowing money.


Category: Loan APR 5% APR 9% APR 14.5%
Loan Principal $8000 $8000 $8000
Payment Schedule Monthly Monthly Monthly
Length of Term 3 3 3
Amount to be paid $8,616.55 $9,109.79 $9,788.00
Total interest paid $616.55 $1,109.79 $1,788.00
Paid per installment $236.07 $249.58 $268.16

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9 Loan Requests

  1. carl applied for the following loan:

    Loan: 2,500

    Speed: today

    Credit: think 540

    Location: toronto canada

    Income: I am on social assistance my earnings is 575.00 month plus extra for diet


    I have no food and no money now things are bad I need help buying food and I promise too pay back the loan all of it if its approved I have my cell phone bill and TV bill back up please help me with this loan thanks

  2. Faye applied for the following loan:

    Loan: $3000.00

    Speed: within 5 days

    Credit: I am not sure but I beleive somewhere around 630

    Location: Valemount, BC Canada

    Income: All I have right now is the OAS and CPP and in January 2015 will be drawing from my RRIF. I have also applied for GIS from the Government of Canada which I qualify for. I now receive $1450,00 a month from my pensions and approximately $450.00 a month from my RRIF in January 2015.


    The purpose for my loan is that I need money for Novembers rent and my sister gave me a car as I didn’t have one and the BC government wants me to pay PST on it as my sister who gave me the car lives in Alberta. They don’t pay PST in that province so now they want me to pay it.My hydro bill is $300,00 for the past 2 months and I want to make payments on my visa.

  3. Tracy applied for the following loan:

    Loan: 30,000.00 (or less)

    Speed: As soon as possible

    Credit: Fair

    Location: Mount Forest, ON Canada

    Income: I work full time. My monthly income is net $ 750 per week ($1600 per week if I include my husbands net income). Both my husband and I work for the same family business that was doing really well until the US market crashed and we lost 50% of our business (exporting). At that time we were put on a wage freeze and have yet to get a raise. With everything increasing in cost and not getting a raise our finances are becoming strapped.


    To borrow enough to consolidate some of our debt into 1 monthly payment at a possible lower interest rate paid back over 6 years.

    On a side note: in roughly 2 years 7 months my car loan will be paid off and that monthly payment will be used to help accelerate my payments (to get the loan paid off hopefully sooner). That car loan is not part of the debt that I want to consolidate as it is at a 0% interest rate.

    We got into debt by being talked into being our own GC on the construction of our home and to build during the winter (to save money). Unfortunately 7 years ago we had a horrible winter – our costs went up due to weather delays, trade delays, increased contract fees (for unforseen site issues), etc. etc. Then the US market crashed and our bank called in our construction loan before we were done building – so on top of paying our trades we had to pay our full mortgage payment (on monies already borrowed – instead of interest only). In the end we ended up with a $75,000 cost overrun on a home that should have saved us money. As a result and with regret we have decided to sell our home this year (which is unfortunate as it was our dream home) and plan to use the proceeds to pay off the balance of the rest of our debt not covered by this loan.

    We are good for the monthly payment – we just need someone to help us out. Please take a chance!!

  4. jason applied for the following loan:

    Loan: 20000$

    Speed: As soon as later than a week from now

    Credit: Fair to poor

    Location: Quebec- Canada

    Income: 4000$ to 5000$


    Need to pay off one credit card immediately to improve my credit rating and make a down payment for a new home. Working on buying anew home as soon as it is done. I tried to consolidate it with my bank , however I need to pay if off to have my mortgage.

  5. Tristan applied for the following loan:

    Loan: 4000

    Speed: Immediate

    Credit: Poor

    Location: Calgary

    Income: Self employed on commission when deals close to completion. My pay varies


    To pay rent while waiting for my husband to start his job. He is looking for work as IT Project manager within Canada.

  6. Daniel applied for the following loan:

    Loan: 10000

    Speed: Doctorate Tuition - final year

    Credit: 650

    Location: Toronto, On.

    Income: 3000. 5-700 tutoring ($40/hour) 2000-2500 bartending/serving. Majority of money is in cash (tips and tutoring)


    In my last year of my doctorate. Will be practicing in August 2017. Struggling to find finances to finish paying for tuition (total tuition is 25000/year). Can pay back monthly payments easily through my two jobs.

  7. SULTAN applied for the following loan:

    Loan: 3000


    Credit: POOR


    Income: i received 2696$ and today i start my new job and i receive some money around 900$ per month in additional to my salary


    to pay emergency expensive need to take care of sooner

  8. Mohamed applied for the following loan:

    Loan: 5500

    Speed: Debt Consolidation

    Credit: Below 500

    Location: Toronto

    Income: 3400 Plus commission


    Consolidate pay day loans and a credit credit and rebuild my credit with one loan

  9. Mohammed applied for the following loan:

    Loan: 10000

    Speed: Immediately

    Credit: 620

    Location: Edmonton, Alberta Canada

    Income: 2300 1 do some side work too where I make roughly 500 month extra I also make some cash on bartending I own a car too worth of $5000


    Need to pay off one credit card immediately to improve my credit rating and make a down payment for a new home. Working on buying anew home as soon as it is done. And I have expenses since I have a 4 year old son. I pay my rent 300
    Other expenses 200

    We are good for the monthly payment – we just need someone to help us out. Please take a chance!! Please help

    I need it ASAP and I will pay back in 2 years time

    With interest… I just wanna know if this is a legit

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