Compare Car Loans

Quick Pre-Approval

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• Rates from 3.90% - 29.90%
• Borrow $500 - $75,000
• Loan terms from 12 - 96 months
• Pre-qualify within minutes
• Get matched with offers

0% Financing

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• Rates from 0% - 46.96%
• Borrow $500 - $50,000
• Loan terms from 3 - 60 months
• Easy process
• Get matched with offers

Used Cars

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• Rates from 3.90% - 29.90%
• Borrow $500 - $75,000
• Loan terms from 12 - 96 months
• 6 dealerships in Ontario
• Fast and easy approval process

Consumer Rating: ★★★★★ 4.5 / 5

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Best for quick approval: CarsFast Car Loans

$500 – $75,000
Loan amount

3.9% – 29.9%
APR

12 - 96 months
Term

• Info
• Features
• Details

Browse thousands of vehicles from dealers across Canada and get matched with financing that meets your needs. Apply online to purchase a new or used vehicle and get the vehicle delivered to your door.

• Easy application
• Multiple lenders
• Quick financing
• No collateral required
• Long loan terms
• Bad credit doesn't matter
• Available Canada-wide

• Higher interest rates for bad credit
• Only some lenders showcased

Loan amount	$500 – $75,000
APR	3.9% – 29.9%
Term	12 - 96 months
Interest Rate Type	Fixed
Min. Credit Score	300
Fees	Varies by lender, loan type and province
Origination Fee	N/A
Turnaround Time	Get pre-approved in less than 60 seconds.

Consumer Rating: ★★★★★ 4.5 / 5

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Best for all credit scores: Loans Canada Car Loans

$500 – $50,000
Loan amount

0% – 46.96%
APR

3 - 60 months
Term

• Info
• Features
• Details

Get access to financing from multiple lenders across Canada through a single application with Loans Canada. Bad credit, CERB and EI borrowers are considered.

• Affordable interest rates
• Flexible loan terms
• Low minimum credit score requirements
• Bad credit, CERB and EI borrowers are also eligible

• Only get quotes from affiliated providers
• Have to call and speak to a customer service representative to negotiate your loan terms

Loan amount	$500 – $50,000
APR	0% – 46.96%
Term	3 - 60 months
Interest Rate Type	Fixed
Min. Credit Score	300
Fees	Varies by lender
Origination Fee	Dependent on lender
Turnaround Time	Varies

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Best for good credit: goPeer Car Loans

$1,000 – $25,000
Loan amount

8% – 31%
APR

36 - 60 months
Term

• Info
• Features
• Details

goPeer is Canada's first regulated consumer peer-to-peer lending platform that connects creditworthy Canadians looking for a loan with Canadians looking to invest. Get access to competitive rates and loan terms – but keep in mind it may take a while to get financing.

• Easy application
• Competitive interest rates
• High loan amount

• Loan turnaround time can vary
• Origination fee applies
• Need good credit

Loan amount	$1,000 – $25,000
APR	8% – 31%
Term	36 - 60 months
Interest Rate Type	Fixed
Min. Credit Score	600
Fees	Origination fee varies No application or prepayment fees
Origination Fee	N/A
Turnaround Time	Receive a response within 24 hours of your loan application

How does auto financing work?

A car loan is a type of financing used specifically to purchase a new or used car. After buying the car, you’ll make monthly payments of both principal and interest until the loan is fully paid off. Auto loans are usually secured loans — the car itself is used as collateral and can be repossessed if you don’t make payments.

How much you can borrow and what interest rate you get depends on the lender and your personal financial situation. The best way to ensure you’re getting the best deal available to you is to compare offers from multiple lenders before signing on to any car loan.

How much do car loans cost?

When it comes to how much you’ll pay for auto financing, you need to factor in both ongoing costs built into the loan and upfront costs. These are going to include:

Ongoing costs

• Interest rate. The average car loan rate is 4.5% to 6%. The lowest rates hover around 3%, though these are reserved for individuals with excellent credit and a low debt-to-income ratio. Borrowers with poor credit usually see rates in the double digits.
• Fees. Some lenders charge an origination fee of 1% to 5% of the loan amount. Your loan’s APR is interest and fees expressed as a percentage.

In addition to APR, the length of your loan term also affects the overall cost. Your loan term is the amount of time you have to pay off your loan. A short loan term generally results in higher monthly payments, but a lower total loan cost. A longer loan term gives you lower monthly payments, though you’ll ultimately pay more in interest.

Upfront costs

After your APR and term, you’ll want to pay attention to how much you’ll have to pay up front and in taxes:

• Down payment. How much you’re expected to put down affects the immediate cost of your car loan. Expect to pay 10% to 20% of the cost of your vehicle up front.
• Sales tax. Sales tax differs between different provinces and territories, so contact Service Canada to find out more about the tax you should expect to pay. Make sure to factor in sales taxes when estimating the cost of your car, as this can add a hefty amount onto the cost, usually between 13-15%.

Where can I get a car loan?

• Banks. Your bank most likely offers auto financing or a personal loan you can use to purchase a new car. It’s a relatively hands-off experience, and only applicants with good credit typically qualify.
• Credit unions. Credit unions often offer financing with lower rates and more lenient credit requirements. But you need to join to qualify, which can add time to the process.
• Online lenders. Online car loan providers can offer faster funding for people with damaged credit or who are new to auto financing. Some can also help you find a car at a dealership.
• Online connection services. Loan connection services could be an ideal option if you have bad credit, since many offer loans with low or no credit requirements — though it won’t be cheap.
• Dealerships. You can always try to get financing directly from the dealership, though you might need to become a master negotiator to dodge typical dealership tactics.

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Written by

Emma Balmforth

Producer

Emma Balmforth is a producer at Finder. She is passionate about helping people make financial decisions that will benefit them now and in the future. She has written for a variety of publications including World Nomads, Trek Effect and Uncharted. Emma has a degree in Business and Psychology from the University of Waterloo. She enjoys backpacking, reading and taking long hikes and road trips with her adventurous dog. See full bio