CarsFast Car Loans
- Borrow from $500 - $75,000
- Rates from 3.90% - 29.90%
- Loan term of 12 - 96 months
If you’re searching for the best car loans in Canada, you have many options. You can apply to a direct lender, dealership or car loan search platform. Consider applying to a dealership or car loan search platform as they have strategic partnerships with lenders to help their customers find the most competitive car loan offers.
Use this guide to find out some of the best car loan providers in Canada. No single car loan is best for everyone, so compare your options to find the right fit for your unique situation.
To approve you for a car loan, lenders will want to see that you’re earning at least $1,200-$1,800 per month. If you have bad credit, it’s possible for some lenders to still approve you, but they will charge higher interest rates.
Car loan provider | APR | Loan term | Key features | |
---|---|---|---|---|
3.90% - 29.90% | 12 - 96 months |
| Go to site | |
0% - 46.96% | 3 - 60 months |
| Go to site | |
From 8.49% | 24 - 96 months |
| Go to site | |
3.90% - 29.90% | 12 - 96 months |
| Go to site | |
6.99% - 29.99% | 12 - 96 months |
| Go to site | |
From 7.99% | 12 - 96 months |
| ||
8.99% - 46.96% | 72 - 84 months |
| ||
10% - 18% | 1 - 5 years |
| ||
From 1.99% | Up to 96 months |
| ||
As low as 10.99% | Varies |
|
Loan amount | $500 – $75,000 |
---|---|
APR | 3.9% – 29.9% |
Term | 12 - 96 months |
Interest Rate Type | Fixed |
Min. Credit Score | 300 |
Fees | Varies by lender, loan type and province |
Turnaround Time | Get pre-approved in less than 60 seconds. |
Serviced Provinces | ON, AB, BC |
Loan amount | $500 – $50,000 |
---|---|
APR | 0% – 46.96% |
Term | 3 - 60 months |
Interest Rate Type | Fixed |
Min. Credit Score | 300 |
Fees | Varies by lender |
Turnaround Time | Varies |
Serviced Provinces | All provinces and territories |
Loan amount | Starting at $7,500 |
---|---|
APR | Starting at 8.49% |
Term | 24 - 96 months |
Interest Rate Type | Fixed |
Min. Credit Score | 580 |
Fees | Service fees will apply depending on where you live: $899 in Nova Scotia |
Turnaround Time | Less than 24 hours |
Serviced Provinces | Ontario and Nova Scotia |
Loan amount | $500 – $75,000 |
---|---|
APR | 3.9% – 29.9% |
Term | 12 - 96 months |
Interest Rate Type | Fixed |
Min. Credit Score | 300 |
Serviced Provinces | Ontario |
Loan amount | $7,000 – $50,000 |
---|---|
APR | 6.99% – 29.99% |
Term | 12 - 96 months |
Interest Rate Type | Fixed |
Min. Credit Score | 300 |
Fees | $0 |
Turnaround Time | 24 Hours |
Serviced Provinces | British Columbia, Alberta, Saskatchewan, Ontario, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland |
Loan amount | Starting at $5,000 |
---|---|
APR | Starting at 7.99% |
Term | 12 - 96 months |
Interest Rate Type | Fixed |
Min. Credit Score | 500 |
Fees | $130 for registering your licence plate |
Turnaround Time | Less than 24 hours |
Serviced Provinces | Ontario |
Loan amount | $500 – $50,000 |
---|---|
APR | 8.99% – 46.96% |
Term | 72 - 84 months |
Interest Rate Type | Fixed |
Min. Credit Score | 550 |
Fees | Varies by lender, loan type and province |
Turnaround Time | Get pre-approved in as little as 60 seconds, and receive money in as little as 24 hours from the time of your application. |
Serviced Provinces | All provinces |
Loan amount | Starting at $7,500 |
---|---|
APR | 10% – 18% |
Term | 1 - 5 years |
Interest Rate Type | Fixed |
Serviced Provinces | All |
Loan amount | Undisclosed |
---|---|
APR | Starting at 10.99% |
Term | Varies |
Interest Rate Type | Fixed |
Serviced Provinces | All across Canada |
Loan amount | $5,000 – $50,000 |
---|---|
APR | Starting at 1.99% |
Term | 96 months |
Interest Rate Type | Fixed |
Serviced Provinces | All provinces |
At Finder, we spend hundreds of hours comparing and analyzing providers and products. Based on this research, we select the best car loans based on specific criteria and reasons. When choosing the best car loans, we consider each lender’s rates, fees, terms, borrowing amounts, funding speed, borrower perks, customer feedback and awards. Use our list of the best car loan suggestions as a tool — to help you narrow down the options and find the best auto financing to fit your needs. Remember, no single car loan will be the best choice for everyone, so compare your options before applying.
In 2023, we completed the Finder: Car Loans Consumer Satisfaction Awards — an annual ranking of car loan providers in Canada, based on customer satisfaction feedback. Read more about these awards and the methodology used to find the best car loan providers, based on customer service scores.
When shopping for the best car loan, you’ll need to consider four main features included in every auto financing contract.
The principal is the total amount you need to borrow from a lender. The amount is calculated using the purchase price of the car plus any fees, extra costs — such as dealer add-ons or upgrades — and taxes, minus any down payments or deposits you made.
The car loan interest rate is the percentage your lender charges on the money you borrow. The interest rate you get will dictate your overall cost of borrowing money to buy a car. To get the best rate, several factors are considered, such as how much you want to borrow, the size of your down payment, your credit score, along with income and debt details.
Read our guide on getting the best car loan interest rate.
A loan term is the amount of time it will take you to repay the car loan. The longer the loan term, the lower your monthly payments but the more interest you pay. The shorter the loan term, the higher your monthly payments but your overall cost to buy a vehicle drops. Typical car loan terms range from one year to seven years.
There is no easy answer to this question but the right answer should balance two competing needs: manageable monthly car loan payments and the overall cost of borrowing to finance a vehicle purchase. For that reason, the best term for a car loan is the shortest term with the best possible rate. This may not mean getting a car loan with the cheapest monthly payments, but it does mean finding a car and a car loan that you can realistically afford.
When comparing car loans, remember to consider all the extra costs and fees. While some extra costs are specific to the type of vehicle others are associated with where you buy a car and the lender you choose.
For example, you may be required to pay a surtax on any import bought through a dealership. Plus, the dealership may add another cost to the overall purchase price because you upgraded from cloth to leather seats. Then you may be required to pay legal or appraisal fees when opening a car loan, or a discharge fee when you make your final payment.
These additional costs can add up and, if you’re not careful, significantly inflate the overall cost of your vehicle purchase.
To compare car loan costs—and find the best car loan—you first need to determine each lender’s annual percentage rate (APR).
The APR is the interest rate on the car loan plus any additional costs and fees associated with the loan. You can find the APR in the loan agreement — and keep in mind, that it’s usually higher than the advertised interest rate.
The APR is a more effective tool when comparing car loans as it reflects the actual cost you pay to buy the vehicle. To learn more, check out our primer on APR and how it impacts the cost of debt.
According to Finder’s Consumer Insights Survey January 2024, the three most important factors for Canadians when looking for a car loan were interest rate (61%), monthly payment (58%) and fees (39%).
And when we asked them which aspects of car buying they found most challenging, the top three most-selected aspects were negotiating the car price (43%), finding a seller they trusted (31%) and finding a car that met their requirements (31%).
To get the best car loan, not only do you need to compare auto finance features, but you need to determine the best type of car loan for your needs. First, consider the types of car loans available in Canada:
To help you narrow down your options, here are the 12 best car loans in the Canadian marketplace, based on the type of loan, what each car loan is best for and where to find more details on these lenders and loans.
Best for: Getting the lowest car loan rates
A secured car loan means the car – or other assets you own – is used as collateral to secure the loan. If you fail to repay the car loan, the lender has the legal right to claim ownership of the asset used as collateral and to sell that asset to repay the debt. The most common type of secured loan in Canada is a mortgage, but lenders also use secured car loans to help reduce the interest rate charged on the loan. Generally, the more secure and less risky a loan, the lower the interest rate. To learn more, read our guide on secured car loans.
Best for: Older used cars
Lenders typically cannot accept older, used cars as collateral because they’ve already lost a lot of value. If you’re planning to buy a used car, you can apply for an unsecured car loan.
Best for: Fixed budgets or large loans
A fixed-rate car loan means the lender uses one interest rate throughout the entire loan term, even if interest rates fluctuate.
The benefit of a fixed-rate car loan is that your monthly payments do not fluctuate — giving you predictable monthly loan repayment. The drawback of a fixed-rate car loan is that the interest rate charged is often higher than variable-rate loans.
Best for: Smaller loans or short loan terms
A variable-rate car loan uses an interest rate that fluctuates based on market conditions.
When negotiating a variable-rate car loan, you’ll be quoted an interest rate based on the lender’s prime rate, plus or minus based on market conditions, your credit score, your income and debt levels along with a few other factors.
When rates fall, the lender should pass on the savings to you, the borrower. However, if rates rise, the lender can either increase your monthly car payment or keep your payment the same, but more will go to paying down interest, not the principal debt.
Best for: Those who are employed but have no savings
This type of car loan can be convenient since borrowers don’t have to use their own money as a down payment to purchase the vehicle but these loans usually come with higher costs. Most non-traditional loans, like no-money-down car loans, will have higher interest rates and many will have extra fees.
In general, it’s not wise to purchase a higher-value asset with no money down, unless you are confident that you can repay the loan. For instance, a new post-secondary graduate may consider this type of car loan if they just secured their first job and need a reliable set of wheels to get to and from work.
To understand whether or not this type of loan is best for you, read our guide on no-money-down car loans.
Best for: People with bad credit (or those dealing with a prior bankruptcy)
When your credit history takes a beating, it can be discouraging to purchase larger ticket items, like a vehicle. But even if you have a bankruptcy in your credit history, you can still use a car loan to help rebuild your credit score and get a car.
The key is to consider auto financing from lenders that specialize in offering car loans to people with bad credit. These lenders are more accustomed to loan applications from people with a few dings against their credit history and can find ways to help you finance your purchase. By paying back the car loan on time, every month you also help to rebuild your credit history and improve your credit score. To learn more, read our guide on bad credit car loans.
Best for: Getting a lower interest rate
In general, the best reason to refinance a car loan is to lower your monthly loan repayments and reduce the overall cost of this debt. Unfortunately, not everyone considering car loan refinancing is trying to take advantage of cheaper interest rates. Quite often, the reason for refinancing a car loan is the monthly payments are no longer affordable. In these circumstances, it’s best to consider all your options. To learn more read our guide on refinancing a car loan in Canada.
Best for: Easy, competitive financing through a dealership
In-house financing — car loans through a dealership — make sense for those eager for a quick and simple car buying process. Once you find the new or certified used car you want to purchase, you can discuss the financing terms with the dealer. However, before going to the dealership, consider getting car loan pre-approval so you have an idea of what financing you qualify for and have more negotiating power.
Best for: Ready to drive your car long-term
It’s a good idea to consider a lease buyout if you are ready to drive a vehicle long-term and can determine whether or not the vehicle is worth buying.
To find the best car loan provider, first consider the four types of lenders who offer auto financing in Canada:
For a quick comparison, use the Finder car loan comparison tool.
To help narrow down your options, consider what type of loan you need and then approach the following lenders:
Type of car loan | Banks | Credit unions | Dealerships | Alternative lenders |
---|---|---|---|---|
Secured car loan | Yes | Yes | Yes | Yes |
Unsecured car loan | Yes | Yes | — | Yes |
Fixed-rate car loan | Yes | Yes | Yes | Yes |
Variable-rate car loan | Yes | Yes | Yes | Yes |
No-money-down car loan | Yes | Yes | Yes | Yes |
Bad credit car loan | — | — | Yes | Yes |
Car loan refinancing | Yes | Yes | — | Yes |
In-house refinancing | — | — | Yes | — |
Lease buy-out | Yes | Yes | Yes | Yes |
The best bank for car loans will depend on a few factors. For example, if you have a long-standing relationship with your bank, and have several other banking products in good standing with it already, you may have a better chance of approval with your current bank.
When looking at bank car loan interest rates, banks tend to offer the best rates and loan terms to customers with good to excellent credit scores. Learn more about car loan interest rates.
To find the best car loan for your needs — and improve your odds of qualifying for a car loan — answer the following seven questions:
What is the best car loan in Canada? Well, like all financial questions the answer depends on your situation and needs. To help, we’ve compiled a list of the best car loans in Canada, based on specific features. Use our list to help narrow down the option that’s right for you, or search our complete comparison tool and select the features that matter most to you.
Still not sure? Learn more about how to buy a car in Canada or read our car loan lender reviews to find a lender that suits your needs.
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