Canada Auto Loan Calculator
Calculate monthly car payments for new or used vehicles in Canada. See total interest and amortization over your financing term.
Loan Details
Results
Monthly Payment
C$710
Principal
C$35,000
Total Interest
C$7,570
Total Paid
C$42,570
For estimation only. Not professional financial, tax, or legal advice. Consult a qualified advisor before making decisions. Full disclaimer.
Car loans in Canada
Canadian auto loans typically run 36-84 months. Bank rates for new cars range from 6.5% (excellent credit) to 12%+ (subprime). Dealer financing can be lower on manufacturer-subsidized promos (0-2.99%) but watch for inflated MSRP that cancels the rate benefit.
Bi-weekly vs monthly
Most Canadian lenders offer accelerated bi-weekly payments, which equates to 13 monthly payments a year and shaves 6-12 months off a typical term. This calculator uses monthly compounding for a direct apples-to-apples comparison.
Leasing vs financing
Lease payments are lower but you own nothing at end. Financing builds equity but longer terms (72-84 months) often leave you “underwater” — owing more than the car is worth. Rule of thumb: don't finance longer than 60 months unless the rate is exceptional.
Tax on private sales
Buying used from a private seller? You still pay PST/QST/HST when you register the vehicle with the province — calculated on the higher of purchase price or provincial wholesale book value.
Common questions about Auto Loan
What is the typical auto loan rate in Canada 2026?+
New-car financing: 6%-9% at bank/credit union, 3%-7% at manufacturer captive (Ford Credit, Toyota Financial etc. with promotional rates). Used car: 8%-12%. Subprime (credit score below 600): 15%-25%.
Should I finance or lease a car?+
Finance if you drive 15,000+ km/year, want ownership, or plan to keep 6+ years. Lease if you want a newer car every 3-4 years, drive under 20,000 km/year, and can always afford payments — never lease-end without equity.
What is the maximum auto loan term?+
Most Big Six banks cap at 84 months (7 years). Some dealers and finance companies offer 96 months (8 years). Avoid 96-month loans — you will be underwater (owe more than car worth) for most of the term.
Are EV loans cheaper in Canada?+
Sometimes. The federal iZEV rebate ($5,000 on eligible BEVs under $55k MSRP) continues through 2026, and BC, Quebec, and New Brunswick stack additional provincial rebates ($2,000-$7,000). Some credit unions (Vancity, Desjardins) offer 0.25%-1.00% green-loan discounts on EV financing. However, EV insurance is 20%-30% higher due to battery replacement costs, and used-EV resale values remain volatile. Calculate total cost of ownership including electricity ($0.11-$0.18/kWh) vs gas savings before deciding.
How does sales tax apply to car purchases?+
Dealer new-car sales: GST/HST on full price. Ontario/BC private-party used sales: PST/HST still owed to province when registering — $15,000 car in ON triggers $1,950 HST at ServiceOntario. Alberta: no sales tax at all. Quebec: QST + GST on dealer sales, private used-car sales at higher of sale price or book value. Trade-in reduces taxable amount (sale price minus trade-in) in most provinces except PST-only provinces where trade-in credit varies.
Should I make a larger down payment?+
Yes if you can. 20% down avoids going underwater (owing more than the car is worth) for most of the loan term. Example: $35,000 vehicle with $7,000 down on a 60-month loan at 7% leaves you slightly ahead of depreciation by month 18. With zero down, you can stay underwater for 3+ years — a write-off or trade-in during that window forces you to roll negative equity into the next loan. Keep your total monthly transportation cost (payment + insurance + fuel + maintenance) under 15% of take-home pay.