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
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.
Frequently Asked Questions
Everything you need to know, in one place.
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.
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