BMO car loans review

Our verdict

Our verdict

BMO car loans offer the choice of a fixed or variable rate, terms of up to 8 years, and the flexibility of monthly, semi-monthly, bi-weekly or weekly payments. You can apply for a BMO loan when buying a car at the dealership, and you can pay off your loan early without penalty. However, if you have bad credit, you'll need to consider car loans from alternative lenders.

Pros

• Flexible repayment schedule
• Choose a fixed or variable rate
• Security of dealing with a big six bank

Cons

• Not suited to bad credit borrowers
• You need to apply at a dealership
• Online pre-approval not available

BMO Car Loans is not currently available on Finder

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BMO was a winner in the Finder: Car Loans Customer Satisfaction Awards 2023.

Overall customer satisfaction score: 90.77%

What is BMO?

The Bank of Montreal is a major Canadian bank that offers a comprehensive range of banking products and services to over 13 million customers around the world. Its products include chequing and savings accounts, credit cards, mortgages, investment accounts, insurance, personal loans and car loans.

Is BMO legit?

BMO is one of Canada’s largest and oldest banks. Established in 1817, It is the eighth largest bank in North America in terms of assets and is one of Canada’s so-called “big six” banks.

Headquartered in Montreal, the bank has eight million personal and commercial customers in Canada and $1,251 billion in total assets.

Features of BMO car loans

What are the interest rates of BMO car loans?

BMO does not list any car loan interest rates on its website. However, the interest rate you get for your loan will vary depending on factors such as:

• Your credit history
• Your income
• Your debt-to-income ratio
• Whether you choose a fixed or variable rate
• Your loan term
• Your down payment amount

What we like about BMO auto loans

• Competitive interest rates. As one of Canada’s “big six” banks, BMO can offer competitive interest rates.
• Fixed vs variable rate. You’ll have the choice between a fixed or variable interest rate, depending on your financial needs.
• Flexible payments. Choose between weekly, bi-weekly, semi-monthly or monthly payments to suit your budget.
• Loan amount. The minimum BMO car loan amount is $7,500, with no specified maximum.
• Loan term. Loan terms can range between 3 years and 8 years.
• Skip payments. You have the option to defer a month’s payment towards your loan up to two times a year.
• No prepayment penalties. If you want to pay your loan off early, BMO will not charge any additional fees.

What to watch out for

• Bad credit not OK. If your credit score is poor, you’ll need to consider alternative lenders. Learn more about bad credit car loans.
• Interest rate is not specified. Car loan interest rates depend on several factors, such as credit score, loan term, down payment and more.
• Need to apply through a dealership. In order to get a BMO car loan, you would have to visit a dealership and let them know you’d like to apply for a BMO auto loan. Before going to a dealership, you might want to find out first what kind of rate and loan term you can negotiate for by getting a pre-approved car loan.
• Inconvenient application process. Not only will you have to visit a dealership, but you might have a more difficult time comparing rates. Do not apply on the spot if this is the first offer you have, because you may miss out on better offers.
• Changing payments. You will need to call or visit a BMO branch if you want to make changes to your car loan payments, such as payment frequency, payment date and payment deferral.

Alternatives to BMO car financing

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CarsFast Car Loans CarsFast Car Loans		Customer Survey: ★★★★★	3.90% - 29.90%	$500 - $75,000	12 - 96 months	Requirements: Min. income of $2,000 /month, 3+ months employed		Go to site More Info	Compare	loading Fetching your data...
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Canada Auto Finance Canada Auto Finance		Customer Survey: ★★★★★	4.90% - 29.95%	$500 - $45,000	3 - 96 months	Requirements: Min. income of $1,500 /month, 3+ months employed		Go to site More Info	Compare	loading Fetching your data...

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What do BMO reviews have to say?

There are plenty of negative BMO reviews online. Customers complain about issues such as poor customer service, account errors and fees. There are some more positive reviews for good-quality customer service at individual BMO branches, but these can vary from one location to the next.

It’s also worth mentioning that BMO’s mobile banking app has picked up plenty of positive reviews, averaging 4.6 or higher out of 5 stars on both Google Play and Apple’s App Store.

Summary of BMO reviews

What are BMO’s vehicle loans?

BMO car loans are designed to help you fund the purchase of a new or used vehicle. With loan amounts of $7,500 or more, you can get behind the wheel of your next car sooner and then repay what you borrow over a term of up to 8 years.

You can choose from a fixed or variable interest rate for your loan, and you can choose from four repayment frequency options based on your income and budget:

• Monthly
• Semi-monthly
• Bi-weekly
• Weekly

How does borrowing from BMO work?

If you want to apply for a BMO car loan, you can’t do so online. You will instead need to apply for a loan at the dealership once you’ve chosen the car you’d like to buy.

Simply let the dealership know that you want a BMO car loan and you will then be able to fill out an application in-store. BMO and the dealership work together to process your application, and you then make loan repayments to BMO.

What are the eligibility requirements of BMO car loans?

BMO doesn’t list any car loan eligibility requirements on its website. However, as a general guide, when applying for a car loan from a bank you will need to:

• Be a Canadian resident and the age of majority in your province or territory
• Meet credit score requirements
• Earn sufficient income to be able to afford loan repayments
• Not have been declined credit within the last six months
• Not have declared bankruptcy in the last several years

How to apply for a BMO auto loan

If you want to apply for a BMO car loan, follow these steps.

1. Compare vehicles at a range of dealerships to find the car you want to buy.
2. Tell the dealer you will be financing your purchase and that you want a BMO car loan.
3. Complete an application by providing your name, date of birth, contact details, and income and employment information.
4. Provide photo ID and proof of employment, such as a letter from your employer or recent paystubs.
5. Submit your application for processing.

Bottom line

If you’ve got good to excellent credit, BMO car loans are well worth a look. They combine competitive rates with flexible repayment schedules, and you get the peace of mind that comes from dealing with a major financial institution.

However, the in-dealership application process won’t suit all car buyers, so make sure you compare a range of car loans to find the best rate and terms that suit your needs.

Frequently asked questions

• I don't want to apply at a dealership. Does BMO offer any other loan options?

  You may want to consider taking out a personal loan or a line of credit with BMO. You can apply for both of these options online and potentially access the credit you need to buy a car.

• Can I pay off my BMO car loan early?

  Yes. You can pay off your BMO auto loan ahead of time without being charged any fees. You'll need to phone BMO or visit your nearest branch to arrange to pay your loan off early.

• How can I check my BMO car loan balance?

  If you have a BMO chequing account, you can check your outstanding loan balance by logging into online banking. However, if you don't have a BMO chequing account, you'll need to phone the bank to check your loan balance.