401 Auto: Dealer and financing review

What is 401 Auto?

401 Auto is a car dealer that offers in-house and private seller financing across Ontario.

• Car dealer. You can visit one of 401 Auto‘s dealership locations in Cambridge, Barrie, London, Ingersoll, Peterborough, Hamilton, Ottawa or Sudbury. Each dealer has a large and rotating inventory of cars to choose from.
• Financing. Its financing division, 401 Auto Financing, offers interest rates between around 4% and 30%. You can apply with good or bad credit, and borrow up to $50,000 with $0 down for most cars. You may need to apply with a cosigner in some cases.

Features of car loans from 401 Auto Financing

401 Auto car loans come with the following features:

• Ontario based. You can only get 401 Auto financing if you live in Ontario.
• Bad credit financing. You’ll be able to apply with bad credit even if you’re in bankruptcy or a consumer proposal.
• Good rates for good credit. Get rates as low as 4% when you apply with a decent credit score.
• Large inventory. Shop for thousands of cars from several 401 Auto dealerships across Ontario.
• Trade-ins available. Trade your vehicle in for a new car even if your old car has an outstanding loan.

Is 401 Auto legit?

401 Auto is a legitimate car dealer licensed to operate in Ontario. It is owned by 401 Auto RV Canada Inc. (corporation number 2289293). 401 Auto’s dealerships have a collective rating of over 4.7 stars on Google with thousands of reviews. The company has an A+ score with the Better Business Bureau, and many of its dealership locations have good ratings on review sites such as Yably and Nicelocal.

Summary of 401 Auto reviews

401 Auto‘s dealerships have a Google rating between 4.7 and 4.9 stars. Many reviewers indicate that the company offers good customer service and quick and efficient financing. A handful of negative reviews complain of issues such as faulty vehicles and high interest rates, especially for bad credit.

Information above is as of May 3, 2022.

What are the benefits of car loans from 401 Auto Financing?

Enjoy the following benefits when you shop with 401 Auto:

• Fast application. It takes less than 5 minutes to apply for 401 Auto financing and you may be able to drive away in a new vehicle in under 24 hours.
• Easy approval. Get approved for 401 Auto financing with good or bad credit, as long as you make an income of per month and meet eligibility criteria.
• $0 down payment. You won’t have to put any money down to buy a car with 401 Auto in most cases.
• Many financing options. Apply for in-house financing, trade-ins, refinancing or private sale loans.
• Large loan amounts. Qualify for as much as $50,000 depending on your credit score and what type of car you want to buy.

What to watch out for

Consider these drawbacks before buying a car with 401 Auto:

• Higher rates for bad credit. You’ll typically pay much higher rates if you have a credit score below 660.
• Third-party lenders. Your financing will be issued by a third-party lender instead of directly by 401 Auto.
• May require a cosigner. You may need to enlist a cosigner if you have bad credit and can’t qualify without additional support.
• No online shopping. You can’t shop for 401 Auto vehicles online since the inventory on the website doesn’t reflect the actual stock of cars.
• Minimum income requirements. You’ll need to make at least per month to qualify for 401 Auto financing.
• Not available across Canada. You can only buy cars or get in-house financing if you live in Ontario (and vehicles may not be available in remote areas).

Car loans like 401 Auto Financing

What types of vehicles can you finance through 401 Auto Financing?

401 Auto financing can help you finance the following types of vehicles:

• In-house vehicles. Buy used cars, trucks, vans and SUVs with in-house financing and pick them up at one of 401 Auto‘s dealership locations.
• Trade-in vehicles. Request an appraisal to trade your old car in to get a better price on one of 401 Auto‘s vehicles.
• Refinanced vehicle. Refinance an existing car loan to get lower interest rates if you have good credit and qualify for better terms.
• Private sale financing. Apply with 401 Auto Financing to purchase a private sale vehicle.

What types of vehicles does 401 Auto not finance?

401 Auto doesn’t seem to sell recreational vehicles such as boats, RVs, ATVs or motorcycles at its dealership locations. For this reason, you won’t be able to finance these vehicles through 401 Auto unless you go through a private sale.

Do I qualify for a car loan from 401 Auto Financing?

Eligibility criteria

You’ll need to meet the following criteria to qualify for 401 Auto financing:

• Be a Canadian resident who is the age of majority in your province
• Have a valid Canadian mailing address and active bank account
• Be regularly employed and make at least per month.

What provinces and territories is 401 Auto available in?

401 Auto works exclusively in Ontario and doesn’t seem to have plans to expand to other regions. The company operates dealerships in Cambridge, Barrie, London, Ingersoll, Peterborough, Hamilton, Ottawa and Sudbury.

How do I apply for a car loan from 401 Auto?

Apply for 401 Auto financing by following these steps:

1. Visit the 401 Auto homepage and click “Apply now” in the upper-right corner.
2. Indicate what type of vehicle you want to buy (truck, van, car or SUV) and input your available budget.
3. Estimate your credit score and enter your monthly income, employment status, current address and whether you rent or own your home.
4. Input your contact details such as your full name, email address and phone number.
5. Submit to a credit check and wait to be contacted by a 401 Auto financing advisor to discuss your vehicle and loan options.

Required documents

You may be required to submit the following documents to qualify:

• Valid government ID. Submit a valid piece of ID such as your driver’s licence or passport.
• Proof of monthly income. Show proof that you make at least per month using documents such as pay stubs or bank statements.
• Credit score. Give 401 Auto permission to pull your credit report so that a financing advisor can assess your creditworthiness.

I got a car loan from 401 Auto Financing. Now what?

You can use the money from your 401 Auto loan to buy a car with the dealership or with a private seller. The loan will be sourced through a bank or a private lender that 401 Auto works with. You’ll begin to repay the loan after it’s deposited into your bank account. You’ll pay back your principal amount plus interest to the third-party lender until your loan is paid off in full.

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Frequently asked questions

• How long does it take to apply?

  You can apply on the website in less than 5 minutes, and you should get a call from a financial advisor in under 24 hours. From there, you can visit a sales location to find a car that fits within the budget you’re approved for.

• How does 401 Auto financing work?

  You’ll apply for financing with 401 Auto but your application will go to various lenders. These lenders will offer different rates and 401 Auto will give you the best deal available. You’ll then be financed through that third-party lender.

• How much will I pay for 401 Auto financing?

  You’ll pay interest rates between around 4% and 30% depending on your credit score. It’s not clear if you need to pay additional fees to get a car loan with 401 Auto financing since there’s no information about fees listed on the company’s website.

• Am I guaranteed approval for a car loan with 401 Auto?

  You have a very high chance of getting a car loan with 401 Auto, though it’s not guaranteed. For example, you may not be able to qualify if you don’t meet age, citizenship, employment or income requirements.

• How do trade-ins work with 401 Auto?

  You can trade in a vehicle with 401 Auto even if you still owe money on it. This can be helpful if you’re currently dealing with a car loan you can’t afford. You can also trade in a paid-off car to help lower the costs of buying a new vehicle.