Car Deal Canada

Current Car Loan Rates Canada

Current Car Loan Interest Rates in Canada

Take a look at all of the current used vehicle interest rates in Canada. Pick the one you like and go through our quiz to find out if you pre-qualify for one of the lowest car loan rates in Canada

Take a look at all of the current used vehicle interest rates in Canada. Pick the one you like and go through our quiz to find out if you pre-qualify for one of the lowest car loan rates in Canada


On Approved Credit

Current Lowest Car Loan Interest Rate in Canada

Current Lowest Car Finance Interest Rates in Canada

View the car loan bank interest rates below and select the one you want

Scotia Dealer Advantage

6.99% - 11.73%


Current TD CAr Loan rates in Canada
TD Bank

6.99% - 29.99%


Desjardins Car Loan Interest Rate

6.99% - 10.49%


Get the Lowest Car Loan Rates Canada with RBC Car Loan Rates

7.15% - 9.99%


CIBC car loan rates

7.20% - 9.99%


National Bank of Canada
National Bank of Canada

7.49% - 9.99%


BMO Current Car Loan Rates Canada

7.99% - 10.99%


General Bank Of Canada Car Loan Rates
General Bank Of Canada

8.99% - 10.99%


Source One rates
Source One

8.99% - 29.99%


Rifo Car Loan Rates Logo

9.99% - 24.99%


Scotia Dealer Advantage
Scotia Dealer Advantage

9.99% - 29.99%


Axis Auto Finance
Axis Auto Finance

9.99% - 31.99%


Auto Capital
Auto Capital

10.49% - 23.99%


iA Auto Finance Car Loan Rates
iA Auto Finance

10.99% - 29.99%


Northlake Financial Car Loan Rates
Northlake Financial

10.99% - 29.99%


Eden Park
Eden Park

11.99% - 23.99%


Santander Consumer
Santander Consumer

11.99% - 29.99%


Lowest Car Loan Rates Canada with vehicle interest rates

Car Loan Interest Rates in Canada

Unlock the road to unbeatable car loan Interest rates in Canada with Car Deal Canada! Our expertise empowers you to secure the lowest interest rates, making your dream car a reality. We understand the significance of favourable loan terms, offering a streamlined process that matches your financial profile with the best rates available. No matter what the Bank of Canada rate is we will make sure you are getting the best one possible for your situation. 

With a network of trusted lenders and years of industry insight, Car Deal Canada ensures you drive away with not only a fantastic vehicle but also a fantastic deal. We also created an easy-to-use calculator so you can input your chosen rate from above and figure out your potential payments.

Used Car Loan Rates

Used Rates will always be higher then new cars due to the higher risk with older vehicles

New Auto Loan Rates

New car loans always get the best rate. This is where you can potentially qualify for 0% with certain dealers

Canadian Vehicle Rates

Canadian rates will depend on what the current bank of canada rate is

Car Finance Rates

Financing a Car with Car Deal Canada is a great way to build credit and save money with lower rates

Car Loan Interest Rates With a Click Of a Button

At Car Deal Canada, our dedicated team of auto financing specialists is ready to assist you in getting the lowest car loan and finance rates in Canada

Have Questions About Car Loans & Interest Rates in Canada?

The lowest car loan rates in Canada are typically offered by credit unions and major prime banks. Credit unions are able to offer lower rates because they are member-owned and do not have the overhead costs of big banks. Major Banks like RBC, BMO, CIBC, TD and Scotiabank can also offer the lowest rates due to their size. When shopping for a car loan, compare rates from banks, credit unions, and online lenders. Opting for a shorter loan term (e.g. 36 months instead of 60 months) can also get you a lower interest rate. Make sure to check your credit score and shop around to find the best rate for your situation.

Your credit score is one of the biggest factors lenders use to determine your car loan interest rate. The higher your credit score, the lower the rate you will qualify for. Here’s how your credit score impacts your rate:


800+ credit score – You’ll qualify for the lowest rates, likely under 6%.

740-799 credit score – You’ll get a good rate, usually around 7-9%.

680-739 credit score – Your rate will be decent in the 9-12% range.

630-679 credit score – Expect higher rates from 12-17% from most lenders.

Under 630 credit score – You will have difficulty getting approved and pay higher rates if you do.


Improving your credit score before applying for an auto loan can save you thousands in interest, so monitor your credit and take steps to boost your score if needed.

The current average interest rate for new car loans in Canada is around 6-8% and 8-10% for used car loans, according to Ratehub. Rates vary depending on the lender, loan term, your credit score and other factors. Here are the average car loan rates in Canada.


New car loan: 6-8%

Used car loan: 8-10%

36-month term: 6-8%

48-month term: 7-9%

60-month term: 8-10%

72-month term: 9-11%

84-month term: 10-13%


Your individual rate may be higher or lower based on your specific credit and financial profile. Getting pre-approved can help you find out the rate you qualify for.

Here are some tips to get the lowest auto loan rates in Canada:


Check your credit score – aim for a score over 720 to qualify for the best rates. Pay down debts and correct errors in your credit report to boost your score.

Get pre-approved – this allows you to shop for a car knowing the rate you qualify for.

Opt for a shorter term – loans under 60 months tend to have lower interest rates.

Make a larger downpayment – at least 20% down results in lower rates on most loans.

Compare rates from different lenders – check banks, credit unions, and online lenders to find the best rate.

Consider a cosigner – adding someone with excellent credit can help you qualify for the lowest rates.

Look for promotions and discounts – some lenders offer discounted rates on certain cars or to certain groups.

Most lenders in Canada require a minimum credit score of 620-650 to approve you for a car loan. However, the credit score you need depends on these factors:


New or used car – New cars often need a score of 670+, used cars can be 620+

Type of lender – Banks usually need 670+, credit unions can be 640+

Downpayment amount – The higher the downpayment, the lower score you can have

Loan term – Shorter terms need higher scores, long terms can be lower

Interest rate – If you want the lowest rate, aim for 720+ credit score


While it’s possible to get approved with a score in the 600s, interest rates will be higher. Scores above 700 will qualify you for the lowest car loan rates. Checking your credit before applying and improving your score if needed will help ensure approval.

Yes, taking out a car loan and making payments responsibly can help improve your Canadian credit score. Here are some of the benefits for your credit:


– It shows lenders you can handle an installment loan responsibly

– Having a mix of credit (installment loan + credit card) improves your score

– Making monthly payments on time builds your payment history

– It increases the total number of accounts you have

– Keeping your loan balance low compared to the limit is positive


However, applying for too many loans in a short period can negatively impact your score. Try to space out loan applications by at least 6 months. Also, taking on an auto loan you can’t afford with high monthly payments can actually hurt your credit utilization and lower your score.

When applying for a car loan in Canada, most lenders will require these documents:


Proof of income – Recent pay stubs, T4, tax returns if self-employed

Government-issued ID – Driver’s license, passport, etc

Proof of address – Utility bill, bank statement with current address

Downpayment – Proof you have the amount for your downpayment

Insurance quote – To show you’ll be insured on the new vehicle

Current vehicle information – If trading in or already have a loan

References – Some lenders request references


Having all required documents ready will make the application process much smoother and faster. Double check with the lender to ensure you have everything they need to process your auto loan.

Here are some common fees to watch out for with Canadian car loans:


Admin or application fee – Can range from $50-$300+

Prepayment penalty – If you pay off loan early, some charge a penalty of 3 months interest

Discharge fee – $300-$500 fee when the loan has been paid off

Default insurance premium – Added to high-risk loans, can add 2-4% to loan amount

Doc prep fees – Some lenders charge $75-$150 for preparing documents

Dealer admin fees – Dealers sometimes charge their own admin fee of a few hundred dollars


Ask the lender to explain all fees upfront so you know the total cost. Avoid prepayment penalties if possible in case you pay off the loan early.

Yes, getting pre-approved for a car loan in Canada has several benefits:


– Know your interest rate and monthly payment upfront

– Gives you negotiating power when purchasing the car

– Locks in the rate so it can’t change when you find a vehicle

– Speeds up the approval process at the dealership

– Allows you to shop knowing the loan amount you qualify for

– Saves time by completing paperwork ahead of time

– Shows dealers you are a serious buyer with financing ready


The pre-approval process is simple and involves submitting your financial details for evaluation by the lender. There’s no obligation to take the loan once pre-approved.

The longer your car loan term, the higher your interest rate will typically be. Loan terms available in Canada include:


12-36 months – Lowest rates, often under 6%

48 months – Rate remains under 10%

60 months – Average rates of 8-10%

72 months – Rates jumping to 9-11%

84 months – Highest rates of 10-13%


Shorter loan terms have lower risk for lenders so they offer better rates. It takes longer to pay off a 6 or 7 year loan, so the lender charges more interest. Keep your term under 60 months if possible to get the best rate on your auto financing.

Pros of leasing:

– Lower monthly payments

– Drive a new car every 2-4 years

– Latest features and technology

– Under warranty for most of lease term

– No hassle selling or trading in


Cons of leasing:

– Never build equity in the car

– Strict mileage limits

– Expensive overage fees if exceed mileage

– Penalties for excessive wear and tear

– Extra fees at lease end if want to keep car

Pros of financing:

– Build equity as you pay off the loan

– No mileage restrictions

– Keep the car as long as you want

– Customize and modify as desired

Cons of financing:

– Higher monthly payments

– Responsible for all repairs and maintenance

– Need to sell private party or trade in when ready for new car

Here are some great tips for reducing your monthly car loan payments in Canada:


– Make a larger downpayment if possible – at least 20%

– Opt for a used vehicle instead of new

– Choose a loan term under 60 months

– Shop interest rates from multiple lenders

– Pay for extras like warranties upfront instead of financing

– Buy a vehicle with rebates and incentives

– Negotiate the vehicle price; don’t pay sticker price

– Consider a vehicle with better fuel efficiency

– Make extra payments to pay off the principal faster

– Refinance if you secure a lower interest rate later on


Carefully crunching the numbers and doing some negotiating can potentially save you thousands on your auto loan.

If you need a car but have bad credit, here are some options to consider in Canada:


Subprime lenders – Specialize in loans for borrowers with credit challenges; higher interest rates

Co-signer – Adding someone with good credit can help you qualify and get better rates

Used auto loans – More lenders finance used cars for those with bad credit

Secured car loan – Uses collateral like a GIC to secure the loan

Credit rebuilding loans – Designed to help improve your credit over time

Dealer financing – In-house financing from dealership; can get approved with bad credit

Buy here pay here – Allows bi-weekly payments; expensive but more flexible

Save up and buy with cash – Gives time to improve your credit and avoid high interest loans


Don’t give up – with some persistence it’s possible to find a car loan even with poor credit.

Your credit history length is an important factor lenders consider when approving car loans in Canada. Here’s how it impacts your interest rate:


10+ years credit history – Preferred, get the best rates

7-9 years credit history – Qualify for good rates

4-6 years credit history – May get approved but pay higher interest rates

2-3 years credit history – Difficult to get approved, limited options

Less than 2 years – Usually not eligible for an auto loan


A longer credit history proves to lenders you can responsibly manage credit long-term. Having open accounts like credit cards or previous auto loans for many years shows stability.

If you have under 7 years history, you can boost your chances by making a larger downpayment or adding a cosigner with long, established credit.

Here are some tips to avoid mistakes with Canadian car loan applications:


– Don’t apply at too many places as multiple hard inquiries hurt your credit

– Avoid guessing numbers on the application; be accurate to avoid issues

– Read the fine print so you fully understand fees, penalties, etc

– Make sure you provide all required documentation the first time

– Don’t make any major purchases that can affect your debt-to-income ratio

– Check all numbers on documents before signing anything

– Be upfront about bad credit issues rather than letting the lender find them

– Don’t sign the loan agreement until you’ve purchased the car

– Don’t take the first loan you’re offered without comparison shopping


Avoiding these common mistakes will help ensure a smooth, headache-free car loan application!

Get Approved Today

Pre-Qualify for a car loan in under 60 seconds