🚗 Canada Auto Loan Calculator 2025

Calculate your monthly car payments, compare interest rates, and find the best auto financing deals across Canada

Latest Update: Current average auto loan rates in Canada range from 5.99% to 10.99% depending on your credit score and loan term. Get accurate calculations instantly!

🧮 Auto Loan Calculator

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📊 Your Loan Results

Monthly Payment: $0
Total Loan Amount: $0
Total Interest: $0
Total Cost: $0
Sales Tax: $0

🏦 Current Auto Loan Rates in Canada (September 2025)

Compare the latest interest rates from major Canadian banks and financial institutions:

Lender New Car Rate Used Car Rate Credit Score Required Maximum Term
TD Auto Finance 2.99% - 7.99% 4.99% - 9.99% 660+ 96 months
RBC Royal Bank 3.99% - 8.99% 5.99% - 10.99% 650+ 96 months
Scotiabank 4.99% - 9.99% 6.99% - 12.99% 640+ 84 months
BMO Bank of Montreal 4.99% - 10.99% 7.99% - 13.99% 630+ 84 months
CIBC 3.99% - 9.99% 5.99% - 11.99% 650+ 96 months
National Bank 4.59% - 9.99% 6.99% - 12.99% 640+ 84 months
Important: Interest rates vary based on your credit score, down payment, loan term, and the age of the vehicle. The rates shown are for qualified borrowers and may differ from your actual approved rate.

📋 Required Documents for Auto Loans in Canada

  • Valid Canadian driver's license
  • Proof of income (pay stubs, T4, NOA)
  • Employment verification letter
  • Bank statements (3-6 months)
  • Proof of residence (utility bill, lease agreement)
  • Credit report and score
  • Vehicle information (VIN, purchase agreement)
  • Proof of insurance

💰 Factors Affecting Your Interest Rate

  • Credit score (most important factor)
  • Down payment amount
  • Loan term length
  • Vehicle age and condition
  • Debt-to-income ratio
  • Employment history and stability
  • Province of residence
  • Relationship with the lender

🎯 Credit Score Impact on Rates

  • Excellent (750+): 3.99% - 6.99%
  • Good (700-749): 5.99% - 8.99%
  • Fair (650-699): 7.99% - 11.99%
  • Poor (600-649): 10.99% - 16.99%
  • Bad (<600): 15.99% - 29.99%

🚙 New vs Used Car Financing

  • New cars: Lower rates, longer terms available
  • Used cars: Higher rates, shorter maximum terms
  • Certified Pre-owned: Special financing available
  • Vehicle age affects eligibility and rates
  • Mileage restrictions may apply
  • Warranty coverage differences

🏪 Compare Canadian Auto Loan Providers

Find the best auto financing deals from trusted Canadian institutions:

TD Auto Finance
From 2.99% APR

Up to $200,000 financing
96-month terms
4,500+ dealerships

RBC Auto Loans
From 3.99% APR

Flexible payment options
No prepayment penalties
Newcomer programs

Scotiabank Auto
From 4.99% APR

#1 Vehicle financing choice
Payment breaks available
Online account management

CIBC Auto Loans
From 3.99% APR

No down payment options
Green vehicle incentives
Up to $75,000 financing

💡 Expert Tips for Getting the Best Auto Loan in Canada

🔍 Shop Around

Compare rates from banks, credit unions, and dealerships. Don't accept the first offer - negotiate for better terms and use competing offers as leverage.

📈 Improve Your Credit Score

Check your credit report, pay down existing debt, and avoid new credit applications before applying for an auto loan to get the best rates.

💵 Make a Larger Down Payment

A down payment of 20% or more can significantly reduce your interest rate and monthly payments while building instant equity in your vehicle.

⏰ Choose the Right Term

Shorter loan terms mean higher monthly payments but less interest paid overall. Consider 60 months or less to minimize total costs.

🕐 Get Pre-Approved

Secure pre-approval from your bank or credit union before visiting dealerships. This gives you negotiating power and a clear budget.

📊 Consider Total Cost

Don't focus only on monthly payments. Consider the total interest paid, loan term, and additional fees when comparing loan options.

📚 Complete Guide to Auto Loans in Canada

Understanding Auto Loan Basics

An auto loan is a secured loan where the vehicle serves as collateral. This means if you default on payments, the lender can repossess the car. Because the loan is secured, interest rates are typically lower than unsecured loans like personal loans or credit cards.

Types of Auto Financing Available

Auto Loan Application Process

  1. Check Your Credit Score: Know where you stand before applying
  2. Determine Your Budget: Calculate how much you can afford monthly
  3. Get Pre-Approved: Shop for rates before choosing a vehicle
  4. Choose Your Vehicle: Stay within your pre-approved amount
  5. Finalize Financing: Compare dealer offers with your pre-approval
  6. Complete Documentation: Provide required documents and sign agreements

Province-Specific Considerations

Each Canadian province has different tax rates and regulations affecting auto purchases:

Money-Saving Tip: If you're buying from a private seller, you may be able to negotiate the declared value on transfer documents to reduce provincial taxes. However, this must be done legally and ethically.

❓ Frequently Asked Questions

What is the average auto loan rate in Canada?

As of September 2025, the average auto loan rate in Canada is approximately 6.86% for new vehicles and 8-10% for used vehicles, according to Statistics Canada data.

What credit score do I need for an auto loan in Canada?

Most lenders require a minimum credit score of 600-650 for auto loan approval. However, you can get better rates with scores above 700, and excellent rates with scores above 750.

How much should I put down on a car in Canada?

A down payment of 10-20% is recommended. For a $30,000 vehicle, this would be $3,000-$6,000. A larger down payment reduces your monthly payments and total interest paid.

Can newcomers to Canada get auto loans?

Yes, many Canadian banks offer newcomer auto loan programs that don't require Canadian credit history. RBC, TD, and CIBC all have special programs for new residents.

What's the maximum auto loan term in Canada?

Most lenders offer terms up to 96 months (8 years), but 60-72 months is more common. Longer terms mean lower monthly payments but more interest paid overall.

Should I finance through the dealer or my bank?

Compare both options. Dealers may offer promotional rates, but banks often provide more competitive long-term rates. Get quotes from both before deciding.