- Rates from 3.90% - 29.90%
- Borrow $500 - $75,000
- Loan terms from 12 - 96 months
- Get matched with offers
Compare Car Loans
Get a competitive interest rate and save money on your next car purchase.
- Rates from 0% - 35.00%
- Borrow $3,000 - $50,000
- Loan terms from 3-60 months
- Get matched with offers
Best for quick approval: CarsFast Car Loans
$500 – $75,000
Loan amount
Loan amount
3.9% – 29.9%
APR
APR
12 - 96 months
Term
Term
Browse thousands of vehicles from dealers across Canada and get matched with financing that meets your needs. Apply online to purchase a new or used vehicle and get the vehicle delivered to your door.
- Easy application
- Multiple lenders
- Quick financing
- No collateral required
- Long loan terms
- Bad credit doesn't matter
- Available Canada-wide
- Higher interest rates for bad credit
- Only some lenders showcased
| 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 |
Best for all credit scores: Loans Canada Car Loans
$3,000 – $50,000
Loan amount
Loan amount
0% – 35%
APR
APR
3-60 months
Term
Term
Get access to financing from multiple lenders across Canada through a single application with Loans Canada. Bad credit, CERB and EI borrowers are considered.
- Affordable interest rates
- Flexible loan terms
- Low minimum credit score requirements
- Bad credit, CERB and EI borrowers are also eligible
- Only get quotes from affiliated providers
- Have to call and speak to a customer service representative to negotiate your loan terms
| APR | 0% – 35% |
|---|---|
| Loan Amount | $3,000 – $50,000 |
| Loan Term | 3-60 months |
| Serviced Provinces/Territories | All provinces and territories |
| Turnaround Time | Varies |
| Requirements | Min. income of $1,800 /month, 3+ months employed |
Best for good credit: goPeer Car Loans
$1,000 – $35,000
Loan amount
Loan amount
8.99% – 34.99%
APR
APR
36 - 60 months
Term
Term
goPeer is Canada's first regulated consumer peer-to-peer lending platform that connects creditworthy Canadians looking for a loan with Canadians looking to invest. Get access to competitive rates and loan terms – but keep in mind it may take a while to get financing.
- Easy application
- Competitive interest rates
- High loan amount
- Loan turnaround time can vary
- Origination fee applies
- Need good credit
| APR | 8.99% – 34.99% |
|---|---|
| Loan Amount | $1,000 – $35,000 |
| Loan Term | 36 - 60 months |
| Serviced Provinces/Territories | All provinces |
| Turnaround Time | Receive a response within 24 hours of your loan application |
| Requirements | Min. income of $40,000 /year |
How does auto financing work?
A car loan is a type of financing used specifically to purchase a new or used car. After buying the car, you’ll make monthly payments of both principal and interest until the loan is fully paid off. Auto loans are usually secured loans — the car itself is used as collateral and can be repossessed if you don’t make payments.
How much you can borrow and what interest rate you get depends on the lender and your personal financial situation. The best way to ensure you’re getting the best deal available to you is to compare offers from multiple lenders before signing on to any car loan.
How much do car loans cost?
When it comes to how much you’ll pay for auto financing, you need to factor in both ongoing costs built into the loan and upfront costs. These are going to include:
Ongoing costs
- Interest rate. The average car loan rate is 4.5% to 6%. The lowest rates hover around 3%, though these are reserved for individuals with excellent credit and a low debt-to-income ratio. Borrowers with poor credit usually see rates in the double digits.
- Fees. Some lenders charge an origination fee of 1% to 5% of the loan amount. Your loan’s APR is interest and fees expressed as a percentage.
In addition to APR, the length of your loan term also affects the overall cost. Your loan term is the amount of time you have to pay off your loan. A short loan term generally results in higher monthly payments, but a lower total loan cost. A longer loan term gives you lower monthly payments, though you’ll ultimately pay more in interest.
Upfront costs
After your APR and term, you’ll want to pay attention to how much you’ll have to pay up front and in taxes:
- Down payment. How much you’re expected to put down affects the immediate cost of your car loan. Expect to pay 10% to 20% of the cost of your vehicle up front.
- Sales tax. Sales tax differs between different provinces and territories, so contact Service Canada to find out more about the tax you should expect to pay. Make sure to factor in sales taxes when estimating the cost of your car, as this can add a hefty amount onto the cost, usually between 13-15%.
Don’t forget to ask about any rebates you might be eligible for
If you’re financing with a dealer, ask about any cashback discounts to avoid leaving money on the table. Three main types include cash rebates, low-interest dealership financing and special leases. Government rebates for low-emission or hybrid vehicles are also available in many states.
Where can I get a car loan?
- Banks. Your bank most likely offers auto financing or a personal loan you can use to purchase a new car. It’s a relatively hands-off experience, and only applicants with good credit typically qualify.
- Credit unions. Credit unions often offer financing with lower rates and more lenient credit requirements. But you need to join to qualify, which can add time to the process.
- Online lenders. Online car loan providers can offer faster funding for people with damaged credit or who are new to auto financing. Some can also help you find a car at a dealership.
- Online connection services. Loan connection services could be an ideal option if you have bad credit, since many offer loans with low or no credit requirements — though it won’t be cheap.
- Dealerships. You can always try to get financing directly from the dealership, though you might need to become a master negotiator to dodge typical dealership tactics.
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