Clutch review: Car purchase and financing platform

Alternatives for residents not in Ontario

What is Clutch.ca?

Founded in 2016, Clutch claims to be Canada’s first online car retailer that delivers cars to your doorstep so you can test drive them on your own time. Unlike other car-buying sites online, Clutch owns its inventory – it doesn’t connect you to a third-party dealer that has the car you want. It’s similar to Carvana in the US and Canada Drives. Currently, Clutch only operates in Ontario and Nova Scotia.

Overall, Clutch aims to provide customers with a better experience than traditional in-person dealerships through an easy, transparent car-buying process that you can do completely online.

Is Clutch legit?

Yes, Clutch.ca is a legitimate car-buying platform. This reliable company is BBB-accredited with an A+ rating.

Clutch has also been featured in the news such as the The Globe and Mail and CBC, and it currently has a multi-year partnership with the National Hockey League as the Official Online Pre-Owned Car Retailer of the NHL.

Summary of Clutch cars and financing

Feature	Details
Trial period	10 days/750 km
Exchange policy	Exchanges can be made within the trial period
Warranty	90 days/6,000 km
Negotiable prices	No
Loan amount	Minimum $7,500 No maximum
Loan term	24 - 96 months
Interest rate	From 8.49%
Fees	Service fees will apply depending on where you live: $899 in Nova Scotia
Eligibility requirements	3+ months employed, Max.1 bankruptcy, Ontario & Nova Scotia only, Min. 580 credit score
Serviced provinces	Ontario and Nova Scotia

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What we like about Clutch.ca

Easy and convenient

Clutch.ca is a one-stop shop, and it’s all done online. You can apply for financing, shop for a vehicle and have it delivered for a test drive without ever leaving your home. Clutch provides contactless delivery so you can test out your purchase on your own time.

Competitive prices

Clutch sources its inventory from auctions, trade-ins and partnerships with manufacturers. This removes the overhead cost of showrooms and salespeople, so Clutch is able to provide competitive prices to its customers.

Money-back guarantee

You have 10 days/750 km to give your purchase a whirl. If you’re unhappy, you can request a full refund or an exchange.

Large inventory

You can choose from more than 700 pre-owned cars, trucks, SUVs and minivans on offer from Clutch‘s inventory.

High-quality vehicles

All Clutch cars go through a 210-point inspection and come with a free CARFAX report.

Cross-province purchases (but limited)

If you live in Nova Scotia, you can have a car shipped from Ontario for a fee. If you live in Ontario, you can have a car shipped from Nova Scotia for a fee.

Open-ended terms

If you opt for financing your car, the loan is open-ended and can be paid off at any time without prepayment penalties. You are free to put as much money down on the loan as you’d like. You can also ask to increase your payments to any amount to pay off your loan faster. However, you cannot reduce your payments.

No down payment

It’s possible to get a car loan through Clutch without paying any money out of pocket to secure your vehicle.

Flexible payment schedules

You can opt into weekly, bi-weekly or monthly payments. Your first payment must be at least 14 days from your contract date, but you can change your payment date after your first payment comes out.

Trade-ins accepted

Clutch offers the option of trading in your current vehicle to apply as credit towards your next purchase.

Sell your car

You can sell your car to Clutch even if you don’t intend to buy a car from them. Clutch accepts cars 2000 or newer with no limit to the amount of kilometres on the odometer.

Special promotions

Keep an eye out for offers on the Clutch website. Past offers include “No pay for 90 days” in certain provinces and “$2,000 off select cars” on Black Friday.

What to watch out for

Non-negotiable prices

Clutch already prices its cars competitively, so you cannot negotiate for a lower price. This is a perk if you don’t want the stress of dealing with a salesperson, but if you want to be able to negotiate, then Clutch may not be for you.

Not available in all of Canada

Clutch has recently shifted its focus on Ontario and Nova Scotia.

Only used newer cars available

Clutch only has an inventory of pre-owned cars to choose from. Their cars are also on the newer side, so if you’re looking for older, cheaper cars, you’ll need to look elsewhere.

Fees

Clutch will charge a service fee if you live in Nova Scotia.

Money-back guarantee limits

Clutch will not accept a return if the car has been modified, in an accident or damaged. If you decide to exchange your car, you have up to three cars to test own. However, the third car will not have a money-back guarantee.

What do Clutch reviews say about the company?

Clutch is BBB accredited with an A+ rating. Here is a summary of Clutch reviews online:

Site	Clutch review
Better Business Bureau	2.11 – ★★★★★ (18 reviews)
Trustpilot	2.6 – ★★★★★ (14 reviews)
Google (Etobicoke, ON location)	4.7 – ★★★★★ (2,460 reviews)
Google (Bedford, NS location)	4.6 – ★★★★★ (463 reviews)
Facebook	4.0 – ★★★★★ (205 reviews)

Customer reviews were verified on May 15, 2024.

Summary of positive Clutch.ca reviews

Positive Clutch reviews typically discuss how seamless the process was to buy a car online through Clutch. They also talk about how Clutch’s customer support representatives were very helpful and worked closely with customers throughout the entire car buying process. Some positive Clutch.ca reviews also discuss how the cars people bought were in great condition.

Clutch auto reviews that discuss selling or trading in a car on the platform are also largely positive, with people praising the easy process, accurate car appraisal price and quick payment process.

Summary of negative Clutch reviews

Some customers who left negative Clutch reviews mention noticing issues with the car after purchasing it. When trying to sell their car to Clutch, other customer reviews expressed frustration at Clutch for dropping a car’s appraisal value too steeply in response to discovering issues with the vehicle.

Summary of Clutch.ca Reddit reviews

Many prospective Clutch customers have turned to subreddits like r/PersonalFinanceCanada, r/halifax or r/ontario to learn if Clutch is legit and about previous customers’ experience. Based on what we’ve seen in these threads, the Clutch reviews on Reddit are largely positive, with customers praising the smooth, easy car-buying process. People also comment that Clutch offers very competitive pricing.

Where are Clutch’s car centres located?

Clutch has locations in the following cities. Here you can pick up (if you’re buying) or drop off (if you’re selling) your car. You won’t be allowed to visit these locations to view cars before buying.

• Ontario: Etobicoke (223 Evans Ave)
• Nova Scotia: Bedford (20 Duke St)

What types of vehicles can you buy through Clutch.ca?

Browse through over 700 used cars, including cars, SUVs, minivans and Jeeps. You will also have a selection of various makes and models from manufacturers such as GMC, Dodge, Audi, Honda, Hyundai, Chevrolet, Nissan and more.

Dive deeper: Online car dealers: Canada Drives vs Clutch vs CarDoor

Are Clutch cars high quality?

All Clutch cars go through 210-point inspection and reconditioning to ensure they’re safe and clean. They all come with a free CARFAX report, which allows you to review the vehicle’s history, such as accident/damage records, previous registrations, stolen status and service history.

Clutch also offers a complimentary warranty of 90 days/6,000 km, which covers the following:

How does buying a car through Clutch.ca work?

With Clutch, the entire car-buying process is done online. To start, comb through Clutch‘s inventory of used cars.

Reserve the car you want for 72 hours

Once you find a car you like, click “Get Started” to reserve it for 72 hours and fill out the contact information form. You’ll need to pay a $100 refundable deposit. A Clutch customer advisor will contact you to help you finalize your paperwork online and arrange for delivery to your home. You’re responsible for handling insurance for your new car and you must have proof of insurance at the time of your delivery.

Test own for up to 10 days/750 km

After your car is delivered, you have a full money-back guarantee for up to 10 days/750 km so you can to “test own” your vehicle. If you change your mind during this timeframe, contact Clutch by 5pm EST on the final calendar day of ownership to request a full refund or exchange. The car must not be modified, in an accident or damaged.

You’ll be refunded the amount you paid for the vehicle minus government fees and third party fees (if you chose to get financing through a third party partner).

How does financing a car through Clutch work?

Financing with Clutch is similar to buying. After you’ve selected your car, you’ll need to submit a credit application, which takes about 10 minutes to complete. Clutch will submit the application to the bank to determine what interest rate you qualify for. Interest rates start at 8.49%, but they will vary depending on your situation.

Clutch‘s auto loans are open-ended loans that can be paid off at any time without penalty. You are also free to put as much money down on the loan as you’d like. You can even contact Clutch to increase your payments to any amount to pay off your loan faster. However, you can’t reduce your payments.

Am I eligible for a loan?

To be eligible for financing via Clutch, you’ll need to meet the following criteria:

• Be employed for more than three months.
• Have a minimum credit score of 580.
• Be a Canadian resident with a valid Canadian address.
• Have a valid driver’s licence and be the age of majority in the province you live in.
• Have a valid Canadian bank account.
• Have a maximum of one bankruptcy.

When your vehicle is delivered to your home, you’ll also need to provide the following:

• A void cheque or direct deposit form for the bank account you want your payments to come from.
• A copy of your new insurance faxed or emailed to Clutch.
• A valid driver’s licence.

How to apply for Clutch.ca in 8 steps

If you’re ready to apply for Clutch Car Loans, follow these steps:

1. Head to the Clutch homepage to start your application. Select the province you live in to proceed.

2. Search through Clutch‘s inventory of vehicles to zero in on the car you’d like to buy or finance. Clutch lists its overview, pricing, features and specs. You can read through Clutch‘s inspection report for a detailed look at the car’s condition. Clutch also lists what financing would look like. Click either “Get Started” or “Apply for Financing.

3. Start your application by plugging in details, such as your trade-in value if you have a car you’d like to trade in, your down payment and your ideal loan length. Click “Continue with these terms.”

4. Answer if you’re applying on your own or with a co-applicant. Click “Continue.”

5. Provide your full name, email, phone number and date of birth. Click “Continue.”

6. Provide identity verification with your social insurance number (optional), your driver’s licence number, your driver’s licence expiry and the issuing province. Click “Continue.”

7. Read through your application submission and then hit “Submit.”

8. You should receive a phone call from a loan specialist who will help you with the next steps for your loan application.

How do I sell a car to Clutch?

If you want to sell your car to Clutch, you’ll need to complete the following steps:

1. Head to the “Sell or Trade” section of the Clutch website to select your province and enter your car’s VIN.
2. Provide details about your car including its make, model, mileage, features and any cosmetic damage.
3. Upload documents including your driver’s licence, proof of ownership or title for the vehicle, void cheque or direct deposit form, and a loan payout statement (if you still owe money on your vehicle.
4. Receive an online quote from Clutch to buy your vehicle.
5. If you’re happy with the quote, arrange a date to have your vehicle picked up from you or to drop it off at your nearest Clutch facility.
6. Attend the car-selling appointment (either at your home or at a Clutch facility) where a Clutch representative will spend approximately 15 minutes inspecting your vehicle to make sure it matches the details you provided online.
7. Sign a Bill of Sale prepared by Clutch.
8. Get paid via electronic funds transfer.

The entire sale process can be completed in as little as 48 hours.

Clutch vs marketplaces like AutoTrader, Facebook and Kijiji

Clutch and other online car dealers aren’t your only options when shopping for a car online. You can also browse vehicles on marketplaces like AutoTrader, Facebook Marketplace and Kijiji Autos.

However, unlike Clutch, these marketplaces don’t have their own inventory of vehicles. Instead dealerships and private owners can list cars for sale on each platform, and you can then get in touch with the seller directly to arrange an inspection or test drive. In some cases, you can also arrange to have the car delivered to your door.

When you shop on these marketplaces, you also won’t get the same 10 days/750 km trial period on Clutch. Any terms and conditions that apply will vary depending on the dealer that is selling the vehicle.

How much will a car loan from Clutch cost?

The cost of your auto loan will depend on your interest rate (which is decided based on personal and financial factors), loan amount and loan term. As an example, a $20,000 Clutch.ca auto loan with a 6.15% APR and loan term of 60 months (5 years) will have a monthly payment of $388.05 and a total loan cost of $23,283.15, which includes $3,283.15 paid towards interest alone.

• How to use this car loan monthly payment calculator

  1. Enter the amount you want to borrow to buy a car under Loan amount. This might not be the same as the cost of your car when you add sales tax and minus the amount of your down payment.
  2. Write the amount of time you have to pay off your car loan under Loan terms (in years). If your loan term is in months, divide it by 12 first.
  3. Enter the interest rate you expect to pay on a car loan under Interest rate. If your car loan comes with fees, enter the annual percentage rate (APR) instead.
  4. Click Calculate.

How does Clutch’s money-back guarantee work?

Clutch’s money-back guarantee means you get to drive the vehicle you purchase for up to 10 days/750 km, whichever comes first. If you decide it’s not the right car for you, simply contact Clutch via phone or email to arrange a return or exchange.

The vehicle must be in the same condition as when it was delivered to you. You can make up to two vehicle exchanges in a 30-day period, but the 10-day money-back guarantee will not apply to your third vehicle.

Financing fees, government charges and any other third-party fees will not be refunded. It’s also worth remembering that if you traded in your old car when buying a new one, you won’t get your old car back but will be reimbursed for the trade-in value. It may take up to 15 business days to be refunded after you return the vehicle.

Bottom line

In a recent Finder survey, 1,011 Canadians were asked about their spending decisions in 2023. Dealerships are still the most popular method of finding and buying a vehicle. However, buying a vehicle online is fast becoming a popular option. In Ontario, 17% of potential buyers would buy a vehicle online, while 21% of Nova Scotians would buy a vehicle online.

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Clutch offers a modern type of car shopping and a buying experience that you can complete from beginning to end all from the comfort of your home. You can apply for financing (at competitive rates), have the vehicle delivered directly to your door and even exchange or return your car for a full refund. Look elsewhere if you prefer to see a car in person and test drive multiple cars before settling on one you like.

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