Car Deal Canada

RBC Car Loan Rates

RBC Car Loan Rates

About RBC

RBC Car Loan Rates have been known to be some of the lowest in Canada. Royal Bank of Canada (RBC), is a prominent Canadian multinational financial services corporation.  At present, RBC holds the distinction of being Canada’s largest bank in terms of market capitalization. With a global workforce of more than 86,000 employees, the bank caters to the needs of over 16 million customers worldwide! 

Established in 1864 in Halifax, Nova Scotia, RBC initially had its headquarters in Place Ville Marie, Montreal, Quebec. Throughout its history, RBC has played a significant role in fulfilling the aspirations of countless Canadians, helping them acquire the car they’ve always dreamed of.

About RBC

RBC Car Loan Rates have been known to be some of the lowest in Canada. Royal Bank of Canada (RBC), is a prominent Canadian multinational financial services corporation.  At present, RBC holds the distinction of being Canada’s largest bank in terms of market capitalization. With a global workforce of more than 86,000 employees, the bank caters to the needs of over 16 million customers worldwide! 

Established in 1864 in Halifax, Nova Scotia, RBC initially had its headquarters in Place Ville Marie, Montreal, Quebec. Throughout its history, RBC has played a significant role in fulfilling the aspirations of countless Canadians, helping them acquire the car they’ve always dreamed of.

7.15%

On Approved Credit

Current Lowest RBC Car Loan Rate

Current RBC Used Car Loan Rates

Loan terms of less than 78 months

7.15% - 9.99%

OAC

Loan terms between 79-84 months

7.15% - 9.99%

OAC

Loan terms over 85

7.15% - 9.99%

OAC

Car Loan Application showing RBC Car Loan Rates

RBC Car Loan Calculator

Want to find out your payments with a RBC Car Loan? 

Take advantage of our car loan calculator to estimate your monthly payments conveniently with the Royal Bank of Canada. Just enter your preferred RBC car loan rate based on the rate sheet above and select your desired terms. 

Staying within your budget is paramount while searching for your ideal car, and our specialized car payment calculator is designed precisely for that purpose. It empowers you to remain on track, giving you insights into your payments and ensuring that your chosen car loan rate aligns perfectly with your financial goals.

Questions About RBC Car Loans?

RBC car loan rates currently range from around 7.15% for those with excellent credit up to around 10% for those with poor credit. The exact rate offered will depend on factors like your credit score, income, loan amount and term. Generally, RBC adds a premium of 2.9% to 11.9% on top of their prime lending rate based on your creditworthiness. For a 5-year loan, rates can range from under 5% for the best borrowers up to over 15% for high risk loans. Always check RBC’s current rates as they are variable and do change.

RBC offers flexible car loan terms typically ranging from 12 months up to 96 months (8 years). The longer your loan term, the lower your monthly payments will be, but you’ll pay more interest over the life of the loan. RBC also lets you choose your payment frequency – monthly, semi-monthly, bi-weekly or even weekly. There are no pre-payment penalties so you can pay off your loan faster to save on interest.

To qualify for an RBC car loan you’ll need:

 

– Canadian credit history and income

– Minimum personal/household income of $20,000

– Down payment of 0-50% depending on the vehicle value

– Debt service ratios generally below 40%

– Fair credit (score of 550-600+)

 

RBC also offers car loans to newcomers to Canada through their StartRight program even if you have no Canadian credit history yet.

The easiest way to apply is at the dealership when you are purchasing the car. RBC has partnerships with over 4,500 dealerships across Canada. The dealer will help you through the application and loan approval process. You can also apply directly through RBC for a pre-approval before shopping for your car. Apply online, over the phone or at any RBC branch.

Yes, RBC offers financing for both new and used vehicles. Used car loans make up a significant percentage of RBC’s auto lending. You can finance a used car purchased from a dealership or private party sale. The vehicle generally needs to be less than 10 years old. RBC will finance up to the market value of the used vehicle.

RBC’s minimum credit score requirement is around 550-600, but this can vary by dealership. In general, interest rates under 7% require a score of 700+, 6-7% is 600-700, and over 8% is for scores under 600. The higher your credit score, the lower rate you can qualify for. If your score is below 550, you may need a cosigner or to improve your credit first.

Yes, RBC allows you to get pre-approved for a car loan before shopping for your vehicle. Pre-approval locks in an interest rate and loan amount, puts you in a stronger negotiating position at the dealership, and speeds up the final approval process. You can easily get pre-approved online, over the phone or by visiting an RBC branch.

The maximum you can borrow will depend on factors like your income, existing debts and the value of the vehicle. Most lenders will finance up to 115% of a new car’s value or 100% of a used car’s value. For example, if you purchase a $30,000 used car, RBC may loan up to $30,000. Higher income borrowers may qualify for more.

RBC’s rates are competitive but you can sometimes find even lower interest car loans from other lenders. Secured loans from a credit union can be under 5%. Manufacturer subsidies of 0-3% are available on select new models. Third party lenders like Spring Financial also advertise rates as low as 3.99%. Shop around to find the best rate you qualify for.

RBC charges no application fees for car loans. You may have to pay transaction and registration fees to the government when purchasing and financing the vehicle. Optional creditor insurance will increase your monthly payment. There are no prepayment penalties if you pay off your loan early.

To get the lowest rate from RBC:

 

– Have excellent credit (700+ score)

– Opt for a shorter loan term (under 5 years)

– Provide a down payment of 20% or more

– Keep your debt ratios low (under 30%)

– Choose a fuel efficient, reliable used model

– Apply with a co-signer if needed

To reduce your monthly payments:

 

– Extend your loan term out to 6-8 years

– Put down a smaller down payment

– Buy a less expensive used vehicle

– Trade in your current vehicle to lower the loan amount

– See if you qualify for manufacturer financing deals

– Make extra payments to pay off the loan faster

Be cautious of:

 

Loans over 6 years – you may end up owing more than the car is worth

No money down loans – higher risk of going underwater on loan

Balloon payments – a large payment due at end of term

Adjustable rate loans – monthly payment could go up

Loans with prepayment penalties – charges if you pay off early

Yes, RBC allows you to roll any negative equity from your trade-in into your new car loan. This means you can carry over any unpaid balance still owed on the trade-in and wrap it into the financing for your next vehicle. It makes it easy to transition into a new car but increases your total loan amount.

RBC offers optional creditor insurance products including life, disability, critical illness and job loss coverage to help protect your loan. There is also guaranteed asset protection (GAP) which covers any shortfall between your loan balance and insurance payout in case of theft or total loss. Ask your RBC advisor for details.

Yes, RBC does provide car loans to self-employed applicants, however the qualification requirements are more stringent. You will need 2 years of consistent self-employment income verified through tax returns or financial statements. Have all your documentation ready to speed up the approval process.

RBC will finance a used vehicle purchased from a private party, not just from a dealership. You will need to get the vehicle appraised first to validate its value before applying for financing. RBC will generally loan up to the appraised value on private party car purchases.

If you have a car loan through another lender, RBC may be able to help you refinance at a lower rate. This involves paying off your current loan and replacing it with a new RBC loan. Refinancing could potentially save you thousands in interest, but watch out for fees. Meet with an RBC advisor to review options.

Get Approved Today

Pre-Qualify for car financing in under 60 seconds