Canadians spend from $500 to $1,100 on the average car payment. Learn more about the different variables that affect your monthly car payments, and find out how you can get the best deal when you sign up for a new loan.
The monthly average car payment is approximately $915 for a new car and around $612 for a used car. This is based on the average car prices, interest rates and loan terms in Canada. That said, your monthly car payment depends on several personal factors, such as the price of your vehicle, the interest rate you receive, and the length of your loan.
| Car | Loan amount | Average rate from Statistics Canada | Term length | Monthly average car payment |
|---|---|---|---|---|
| New | $54,493 1 | 6.45% | 72 months | $914.73 |
| Used | $31,306 2 | 6.45% | 60 months | $611.80 |
1. Based on a $60,548 average new car price from AutoTrader, with a 10% down payment
2. Based on a $34,784 average used car price from AutoTrader, with a 10% down payment
The following factors can cause your monthly average car payment in Canada to fluctuate:
Use this calculator to find out your potential monthly payment based on the loan amount, loan term and interest rate.
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Used Cars
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The average price that Canadians spent on new cars, SUVs, trucks and minivans in Q3 2025 is outlined below.
| Location | Average new car price | Amount financed | Average interest rate | Average car payment per month (72 months) |
|---|---|---|---|---|
| Canada | $63,264 | $56,938 | 6.45% | $955.77 |
| British Columbia | $63,912 | $57,521 | 6.45% | $965.56 |
| Alberta | $67,740 | $60,966 | 6.45% | $1,023.38 |
| Ontario | $62,264 | $56,038 | 6.45% | $940.66 |
| Manitoba and Saskatchewan | $63,055 | $56,750 | 6.45% | $952.61 |
| Atlantic Provinces | $57,575 | $51,818 | 6.45% | $869.82 |
| Quebec | $61,652 | $55,487 | 6.45% | $931.41 |
For illustrative purposes only. Your actual monthly payment will vary based on your personal financial situation.
The table below shows an example of what an average car payment in Canada would look like if the borrower buys a new or used car at different rates.
New car | Used car | |
|---|---|---|
Loan amount | $59,904 | $32,178.60 |
Interest rate | 6.99% | 8.99% |
Loan term | 72 months | 72 months |
Average car payment | $1,021.02 | $579.88 |
Total interest paid | $13,609.16 | $9,572.53 |
Credit score | Good | Good |
The interest rate plays a big role in how much you’ll pay for your loan. Used cars typically come with higher interest rates than new cars, but they also have lower prices, so your monthly payments will be smaller.
A good car payment is one that comes with a low interest rate and gives you a monthly payment that you can afford. When negotiating with your dealer, focus on whittling down the price of your car rather than the payment.
A good rule of thumb is to only spend 10% to 15% of your disposable income on a car payment. This ensures that you have plenty of wiggle room to cover other expenses.
According to Statistics Canada, the average car loan interest rate in Canada is 6.66%. Learn more about car loan rates.
Your term length will vary depending on how much you can afford to pay per month, as well as how long you’d like to pay off your loan. The average term length is 72 months.
In the example below, we’ll look at how much your monthly payments will be for the same loan amount based on the length of your term. We’ll also look at how much you’ll pay in interest over the course of your loan.
Loan amount | Loan term | Interest rate | Monthly payment | Total interest |
|---|---|---|---|---|
$40,000 | 3 years | 6.99% | $1,234.90 | $4,456.44 |
$40,000 | 5 years | 6.99% | $791.86 | $7,511.55 |
$40,000 | 7 years | 6.99% | $603.51 | $10,694.98 |
As you can see, the cost of your monthly payments will go up as your term length goes down. That said, you’ll pay less interest over the course of your loan with a shorter term.
You’ll need to consider the following expenses in addition to your average car payment in Canada when budgeting for a car:
| Expense | Average cost |
|---|---|
| Gas | You can expect to pay around $200 per month on gas (on average), depending on a number of factors, including your fuel economy and how far you drive. |
| Insurance | You’ll likely pay between $100 and $200 per month on car insurance, depending on what type of car you have and how much insurance you need. |
| Emergency repairs | You can pay several hundred to several thousand dollars for emergency repairs to your vehicle, depending on the damage. |
| Routine maintenance | You may pay anywhere from $200 to $1,000 per year on routine maintenance. This can include oil changes, tire rotations, filter replacements and other repairs that keep your vehicle running smoothly. |
| Registration. | Registration and licensing fees can cost anywhere from $50 to $250 per year, depending on where you live. |
You can take the following steps to lower your average car payment in Canada:
To make comparing even easier, we came up with the Finder Score. Interest rates, fees and features across 20+ car loans are all weighted and scaled to produce a score out of 10. The higher the score the better the loan—simple.
The amount of money you spend on your vehicle will depend on a number of different factors. As a rule of thumb, you should try to get the shortest term and the lowest possible interest rate. You can also consider buying a less expensive car, making a larger down payment and improving your credit score as ways to help lower your average car payment in Canada.
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