9 Best Car Loans in Canada

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 because 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.

Best car loans in Canada

To approve you for a car loan, lenders will want to see that you’re earning at least $1,200–$2,500 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
	0% - 35.00%	12-84 months	Loan search platform with a large lender and dealer network Available across Canada	Go to site Learn more
	From 7.99%	24 - 96 months	Online dealer of used cars with competitive prices Available in ON, NS, NB and PE	Go to site Learn more
	3.90% - 29.90%	12 - 96 months	Loan search platform for new and used car financing Available across Canada	Learn more
	6.99% - 35%	12 - 96 months	Loan search platform for new and used car financing Available in most provinces	Learn more
	3.90% - 29.90%	12 - 84 months	Direct lender that owns a small network of used car dealerships and offers car loans for all credit scores Available in Ontario and Quebec only	Learn more
	From approx. 7.49%	1 – 8 years	Over 4,500 partnered dealerships Available across Canada	Learn more
	7.49% - 29.99%	Up to 84 months	Bank car loan for prime borrowers Available across Canada	Learn more
	From 0%	Varies	Broker that connects borrowers with multiple lenders Available across Canada	Learn more
	8.99% - 35.00%	72 - 84 months	Loan search platform for all credit scores Available in all provinces	Learn more

Best car loans in Canada

1. Loans Canada

9 Excellent

Go to site

$3,000 – $50,000
Loan amount

0% – 35%
APR

12-84 months
Term

• Our Take
• Pros + Cons
• Details

With one Loans Canada application, you can compare multiple lenders on its innovative online car loan search platform, helping you find the best terms and interest rates on your car loan for your unique needs and budget. Loans Canada can match you with either a national lender or one that works exclusively in your province or territory. Full Review

Best benefits

• Save time. Your application will be cast wide and you'll get your results right after you apply.
• Easily compare offers. Compare offers from multiple lenders in one place.
• Work with an established company. Loans Canada has been in business since 2012 and is accredited by the Better Business Bureau (BBB) with an A+ rating.

• Accepts bad credit
• 60+ lenders in its network
• Fast pre-approvals

• High rates for bad credit
• Offers limited to what's available in Loans Canada's network

APR	0% – 35%
Loan Amount	$3,000 – $50,000
Loan Term	12-84 months
Serviced Provinces/Territories	Across Canada
Turnaround Time	Varies
Requirements	Min. income of $1,800/month, 3+ months employed

2. Clutch

8.7 Great

Go to site

Starting at $7,500
Loan amount

Starting at 7.99%
APR

24 - 96 months
Term

• Our Take
• Pros + Cons
• Details

Clutch is an online dealer with a large inventory of used cars. It's available in ON, NS, NB and PE. Shop for a car online, have it delivered to your door and 'test own' for a period of time. Full Review

Best benefits

• Get a seamless experience. Avoid the hassle of dealing with a salesperson. Clutch car prices are non-negotiable as they already price cars competitively.
• Benefit from a trial period. Use the car for 10 days/750 km and return it if you're unhappy.
• Find the best rates. Clutch works with Canada's largest lenders to help you find the best rates.

• Easy process from beginning to end
• One-stop shop
• Options for all credit scores

• Offers limited to Clutch's network
• High rates for lower credit scores
• New cars not available

APR	Starting at 7.99%
Loan Amount	Starting at $7,500
Loan Term	24 - 96 months
Serviced Provinces/Territories	ON, NS, NB and PE
Turnaround Time	Less than 24 hours
Requirements	3+ months employed; maximum 1 bankruptcy; only available in Ontario, New Brunswick and Nova Scotia

3. CarsFast

8.8 Great

$500 – $75,000
Loan amount

3.9% – 29.9%
APR

12 - 96 months
Term

• Our Take
• Pros + Cons
• Details

CarsFast is a car loan search platform. Apply online and get matched with financing offers that meet your needs. Purchase a new or used vehicle. Full Review

Best benefits

• Access a large network of dealerships. CarsFast is partnered with dealerships to help people with good or bad credit find a car loan.
• Fast quotes. Get your rate offers within minutes of applying.
• Choose the best offer. Receive multiple offers and choose the one that's best for you.

• Accepts bad credit
• Has approved over ,000 customers
• Lending network consists of established lenders like the big banks
• No sign up or log in required

• High rates for bad credit
• Offers are limited to dealerships within CarsFast's network

APR	3.9% – 29.9%
Loan Amount	$500 – $75,000
Loan Term	12 - 96 months
Serviced Provinces/Territories	Across Canada
Turnaround Time	Get pre-approved in less than 60 seconds.
Requirements	Min. income of $2,000/month, 3+ months employed

4. Dealerhop

8.4 Great

$7,000 – $50,000
Loan amount

6.99% – 35%
APR

12 - 96 months
Term

• Our Take
• Pros + Cons
• Details

Get matched with one of Dealerhop's fulfillment partners to finance, trade-in or sell your car online. Full Review

Best benefits

• Get pre-qualified online for financing. Dealerhop offers competitive interest rates and can match you with a lender.
• Apply easily. Buy, sell or trade-in your current vehicle by filling out a quick and easy online application.
• Get your new car delivered. At-home and in-store vehicle deliveries are available with Dealerhop.

• Accepts all credit scores
• Online and in-person shopping available

• High rates for bad credit
• Offers limited to what's available in the Dealerhop network

APR	6.99% – 35%
Loan Amount	$7,000 – $50,000
Loan Term	12 - 96 months
Serviced Provinces/Territories	BC, AB, SK, ON, NB, NS, PE, NF
Turnaround Time	24 Hours
Requirements	Min. income of $3,000/month, 3+ months employed

5. Approval Genie

9.1 Excellent

$5,000 – $75,000
Loan amount

3.9% – 29.9%
APR

12 - 84 months
Term

• Our Take
• Pros + Cons
• Details

Approval Genie is a direct lender that owns a small network of used car dealerships. Operating in Ontario and Quebec, you can also get financing through Approval Genie. Canadians of all credit scores can apply, including those with bad credit. Full Review

Best benefits

• Apply for financing with any credit score. Approval Genie will work with you to secure financing.
• Fast and easy approval process. Approval Genie has a quick, simple application and approval process.
• Good customer reviews. Approval Genie has lots of positive customer reviews on websites like Trustpilot.

• Accepts bad credit
• Fast and easy approval process
• Very positive customer reviews online

• High rates for bad credit
• Offers limited to what's available in its network
• Only in Ontario and Quebec

APR	3.9% – 29.9%
Loan Amount	$5,000 – $75,000
Loan Term	12 - 84 months
Serviced Provinces/Territories	Ontario
Requirements	Min. income of $2,000 /month, 3+ months employed, Ontario only

6. RBC

Starting at $7,500
Loan amount

Starting at 7.49%
APR

1 – 8 years
Term

• Our Take
• Pros + Cons
• Details

Best benefits

• Choose between a fixed and variable rate. If you get a fixed rate, it will stay the same throughout the life of the loan. If you get a variable rate, it will go up or down depending on what the Bank of Canada does. Save on interest if the rate goes down.
• Get flexibility. Choose between monthly, semi-monthly, bi-weekly and weekly payments, and defer one monthly payment per year if needed.
• Work with a reputable lender. RBC is one of the largest banks in Canada and can offer low rates if you have a strong financial profile.

• No prepayment penalties
• Apply at a dealership for potentially better rates
• Established lender
• Flexible loan terms

• Financing limited to partnered dealerships
• Bad credit may not qualify

APR	Starting at 7.49%
Loan Amount	Starting at $7,500
Loan Term	1 – 8 years
Serviced Provinces/Territories	All of Canada
Turnaround Time	Varies
Requirements	Canadian resident, of the age of majority in your province, with a steady source of income, good to excellent credit.

7. TD

7.9 Great

$5,000 – $50,000
Loan amount

7.49% – 29.99%
APR

84 months
Term

• Our Take
• Pros + Cons
• Details

Get TD financing from over 3,500 dealerships. Finance a new or used vehicle, including cars, trucks, RVs, marine vehicles, powersport vehicles and privately sold vehicles. Choose between a fixed and variable rate. Full Review

Best benefits

• Work with one of the Big Six. You'll be getting a competitive car loan from a trusted, experienced lender.
• Access thousands of dealerships. TD partners with over 3,500 dealerships across Canada, so you have plenty of options.
• Compare cars on its easy app. TD Wheels allows you to search for cars based on your price range.

• Lengthy terms
• Finance many types of vehicles
• Use the TD Wheels App to search for a car and pre-qualify for financing
• Payment extensions should you need flexibility
• Pay off your loan without penalty
• No down payment required

• Rate offers limited to TD

APR	7.49% – 29.99%
Loan Amount	$5,000 – $50,000
Loan Term	84 months
Serviced Provinces/Territories	All provinces
Requirements	Canadian resident, of the age of majority in your province, with a steady source of income, good to excellent credit and seeking financing at a dealership or private sale

8. Get Approved Canada

7.4 Great

Undisclosed
Loan amount

Starting at 0%
APR

Not disclosed
Term

• Our Take
• Pros + Cons
• Details

With Get Approved Canada, one application can connect you to a network of 23+ lenders willing to offer competitive rates and terms for your vehicle purchase, regardless of your credit score. Approval takes up to one hour and you can typically get your funding within two business days.

Best benefits

• Easily compare offers. Submit one application and get connected with multiple lenders within minutes.
• Tailored offers. Receive loan options that suit your credit score and location.
• Fast funding. Get pre-approved within one hour and receive your funds up to two business days later.

• Works with any credit profile
• Guaranteed approval
• Fully online application
• New and used vehicle financing available

• Not a direct lender
• Small lender network
• APR and loan terms not disclosed

APR	Starting at 0%
Loan Amount	Undisclosed
Loan Term	Not disclosed
Serviced Provinces/Territories	All of Canada
Turnaround Time	Within 48 hours
Requirements	Must have a steady source of income

9. LoanConnect

7.9 Great

$500 – $60,000
Loan amount

8.99% – 35%
APR

72 - 84 months
Term

• Our Take
• Pros + Cons
• Details

LoanConnect is a car loan search platform that can match you with lenders. Get multiple offers within minutes and your funds in as little as 24 hours. Full Review

Best benefits

• Get approved with any credit score. LoanConnect works with all types of borrowers.
• Get an offer fast. Get pre-approval offers within minutes after applying.
• Compare multiple offers. See and choose from a variety of loan options to find the one that best fits your needs and budget.

• Easy application
• More choice
• Free service
• Transparent terms
• High loan amounts
• Quick deposits
• No collateral required
• Few eligibility requirements

• Offers limited to LoanConnect's network
• High rates for bad credit

APR	8.99% – 35%
Loan Amount	$500 – $60,000
Loan Term	72 - 84 months
Serviced Provinces/Territories	All of Canada
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.
Requirements	No min. income requirements

Which bank is the best for car loans?

If you want to get a car loan from a bank, TD and RBC are two of the top options. They offer competitive interest rates for borrowers with good to excellent credit, flexible loan terms and online tools to help you calculate monthly payments.

If you already bank with TD or RBC, having a good existing relationship can improve your chances of approval and may give you access to preferential rates. Learn more about car loan interest rates.

The 4 basic features of car loans in Canada

When shopping for the best car loan, you’ll need to consider four main features included in every auto financing contract.

Principal amount borrowed

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.

Car loan interest rate

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.

Loan term

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.

Costs and fees

When comparing car loans, remember to consider all the extra costs and fees. Some depend on the type of vehicle, while others are tied to the dealership or lender. For example, import surtaxes, optional upgrades like leather seats, legal or appraisal fees, and discharge fees can add up and increase the total cost of your vehicle.

To compare auto loans effectively, look at each lender’s annual percentage rate (APR), which includes both the interest rate and any additional fees. The APR is usually higher than the advertised rate and gives a clearer picture of the true cost of your loan.

The top 3 car loan factors for Canadians

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%).

9 types of car loans in Canada

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:

1. Secured car loan
2. Unsecured car loan
3. Fixed-rate car loan
4. Variable-rate car loan
5. No-money-down car loan
6. Bad credit car loan
7. Car loan refinancing
8. In-house financing
9. Lease buyout

Secured car loan

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 it 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.

Unsecured car loan

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.

Fixed-rate 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 don’t fluctuate, giving you a 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.

Variable-rate car loan

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.

No-money-down car loan

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’re 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.

Dive deeper: Your guide to $0 down car financing

Bad credit car loan

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.

Dive deeper: Best bad credit auto loans

Car loan refinancing

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 that the monthly payments are no longer affordable. In these circumstances, it’s best to consider all your options.

Dive deeper: Refinance a car loan: 8 steps to get better rates & terms

In-house financing

Best for: Easy, competitive financing through a dealership

In-house financing — car loans through a dealership — makes 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.

Lease buyout

Best for: Those ready to drive their car long term

A lease buyout is when you choose to purchase a vehicle at the end — or sometimes during — your lease instead of returning it to the dealership. This can be a good option if you’ve grown attached to the car, the vehicle is in good condition, and the buyout price is reasonable compared with its current market value.

Where can I find the best car loan in Canada?

To find the best car loan provider, first consider the four types of lenders who offer auto financing in Canada:

• Major banks. Biggest brand recognition. They can be a good choice for people with excellent credit scores or low debt ratios.
• Online car loan lenders. Convenient for online applicants or people who want fast funding or a quick answer. They can be a good choice for buyers with poor or fair credit scores.
• Credit unions. Like big banks, credit unions offer car loans and are often best for buyers with good credit scores.
• Dealerships. Good option if you can find a dealer selling a car you want and offering incentives, such as low-interest rate loans. They’re also a good option for those who hate comparison shopping.

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 buyout	Yes	Yes	Yes	Yes

7 questions to ask when shopping for the best car loan in Canada

To find the best car loan for your needs — and improve your odds of qualifying for a car loan — answer the following seven questions:

1. Do I qualify for a car loan? All lenders have credit and income requirements, but some are more lenient, others specialize in certain categories of borrowers (such as self-employed), and others only lend within certain provinces or for certain types of vehicles. Make sure you meet a lender’s qualifications before submitting a formal application since each loan request will be a hard hit against your credit score. Find out the minimum credit score for a car loan.
2. Is my car eligible? Will this lender provide a loan for the car you want to purchase? Some lenders have restrictions on the age or type of vehicle that can be financed, while others require proof of vehicle history. Confirm with your loan provider that you’ll be able to purchase the car you want before you apply.
3. How much can I borrow? The loan amount the lender offers you depends on a couple of factors. Your credit history and financial situation will be important, but for a secured car loan, the loan amount will ultimately depend on the car’s cost.
4. What type of car loan? It can be a loan for a new or used car, a low-interest car loan or loans for those with poor credit. You can even find loans that offer car loan pre-approval before you decide whether to accept the loan. Since all situations are different, look into all your options to determine which type of loan will benefit you the most.
5. Length of the car loan term? What are the loan terms? How long it takes you to pay off a car loan is known as the loan term. In Canada, most car loan terms range between one and seven years — although this is usually expressed in months, so 12 to 84 months. The longer the loan term, the lower your monthly payments, but the higher your overall cost for your vehicle purchase.
6. Are payments flexible? Being able to skip a payment or make extra payments is a great way to manage debt and repay loans. However, some lenders are not in favour of these prepayment privileges. Find out if the lender will penalize you for repaying your car loan early, charge a fee if you make additional payments or allow you to skip a payment.
7. What is the total cost of borrowing? Most of us focus on the loan amount and the interest rate as these are the principal factors determining the monthly payments. But to get a true cost of borrowing, you need to consider all costs, including add-ons, fees and taxes. Comparing different lenders’ APRs is a good way to see if the loan suits your budget as it combines interest and all fees.

Bottom line

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.

Frequently asked questions about car loans

• Do I need pre-approval to get an auto loan?

  You don't need to get pre-approval, but it's highly recommended. Pre-approval gives you a clear idea of your budget, helps you compare offers and interest rates and strengthens your negotiating power at the dealership. It also reduces the risk of surprises later since you'll know what you qualify for before you start shopping.

• Do I need a cosigner to get an auto loan?

  You don't usually need a cosigner, but having one can help if your credit history is poor or limited. A cosigner with strong credit can improve your chances of approval and help you qualify for a lower interest rate. If you meet a lender's income, credit and debt-to-income requirements on your own, you won't need a cosigner.

• How much should I put down on a car to qualify for an auto loan?

  There's no mandatory amount, but most lenders recommend putting down 10% to 20% of the vehicle's purchase price. A larger down payment reduces the amount you need to borrow, lowers your monthly payment and can help you qualify for better rates, especially if you have fair or limited credit. Some lenders offer $0 down options, but these typically come with higher interest rates and stricter approval criteria.