- Rates from 3.90% - 29.90%
- Borrow $500 - $75,000
- Loan terms from 12 - 96 months
- Pre-qualify within minutes
- Get matched with offers
- Rates from 0% - 46.96%
- Borrow $500 - $50,000
- Loan terms from 3 - 60 months
- Easy process
- Get matched with offers
- 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
If you’re searching for the best car loans in Canada, you have many options. You can apply to a direct lender, dealership or car loan search platform. Consider applying to a dealership or car loan search platform as they have strategic partnerships with lenders to help their customers find the most competitive car loan offers.
Best car loans in Canada
1. CarsFast
$500 – $75,000
Loan amount
Loan amount
3.9% – 29.9%
APR
APR
12 - 96 months
Term
Term
CarsFast is a car loan search platform. Apply online and get matched with financing offers that meet your needs. Purchase a new or used vehicle. CarsFast was the car loan search platform finalist in the Finder: Car Loans Customer Satisfaction Awards 2023 with an overall customer satisfaction score of 82.50%. Full Review
Best benefits
- Access a large network of dealerships. CarsFast is partnered with 350 dealerships to help people with good or bad credit find a car loan.
- Fast quotes. Get your rate offers within minutes of applying.
- Choose the best offer. Receive multiple offers and choose the one that's best for you.
- Accepts bad credit
- Has worked with over 350,000 customers
- Lending network consists of established lenders like the big banks
- No sign up or log in required
- High rates for bad credit
- Offers are limited to dealerships within CarsFast's network
| 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 |
| Turnaround Time | Get pre-approved in less than 60 seconds. |
| Serviced Provinces | ON, AB, BC |
2. Loans Canada
$500 – $50,000
Loan amount
Loan amount
0% – 46.96%
APR
APR
3 - 60 months
Term
Term
With one Loans Canada application you can compare multiple lenders on its innovative online car loan search platform, helping you find the best terms and interest rates on your car loan for your unique needs and budget. Loans Canada can matches you with either a national lender or one that works exclusively in your province or territory. Loans Canada won for best car loan search platform in the Finder: Car Loans Customer Satisfaction Awards 2023 with an overall customer satisfaction score of 86.00%. Full Review
Best benefits
- Save time. Your application will be cast wide and you'll get your results right after you apply.
- Easily compare offers. Compare offers from multiple lenders in one place.
- Work with an established company. Loans Canada has been in business since 2012 and is accredited by the Better Business Bureau (BBB) with an A+ rating.
- Accepts bad credit
- Over 60 lenders in its network
- Fast pre-approvals
- High rates for bad credit
- Offers limited to what's available in Loans Canada's network
| 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 |
| Turnaround Time | Varies |
| Serviced Provinces | All provinces and territories |
3. Clutch
Starting at $7,500
Loan amount
Loan amount
Starting at 8.49%
APR
APR
24 - 96 months
Term
Term
Clutch is an online dealer with a large inventory of used cars. It is available in Ontario and Nova Scotia. Shop for a car online, have it delivered to your door and 'test own' for a period of time. Clutch made it to both the top 15 most recommended and the top 15 best-rated car loan providers in the Finder: Car Loans Customer Satisfaction Awards 2023. Full Review
Best benefits
- Get a seamless experience. Avoid the hassle of dealing with a salesperson. Clutch car prices are non-negotiable as they already price cars competitively.
- Benefit from a trial period. Use the car for 10 days/750 km and return it if you're unhappy.
- Find the best rates. Clutch works with Canada's largest lenders to help you find the best rates.
- Easy process from beginning to end
- One-stop shop
- Options for all credit scores
- Offers limited to Clutch's network
- High rates for lower credit scores
- New cars not available
| Loan amount | Starting at $7,500 |
|---|---|
| APR | Starting at 8.49% |
| Term | 24 - 96 months |
| Interest Rate Type | Fixed |
| Min. Credit Score | 580 |
| Fees | Service fees will apply depending on where you live: $899 in Nova Scotia |
| Turnaround Time | Less than 24 hours |
| Serviced Provinces | Ontario and Nova Scotia |
4. Approval Genie
$500 – $75,000
Loan amount
Loan amount
3.9% – 29.9%
APR
APR
12 - 96 months
Term
Term
Approval Genie is a direct lender that owns a small network of used car dealerships. Operating in Ontario and Quebec, you can also get financing through Approval Genie. Canadians of all credit scores can apply, including those with bad credit. Full Review
Best benefits
- Apply for financing with any credit score. Approval Genie will work with you to secure financing.
- Fast and easy approval process. Approval Genie has a quick, simple application and approval process.
- Good customer reviews. Approval Genie has lots of positive customer reviews online.
- Accepts bad credit
- Fast and easy approval process
- Very positive customer reviews online
- High rates for bad credit
- Offers limited to what's available in its network
- Only in Ontario and Quebec
| Loan amount | $500 – $75,000 |
|---|---|
| APR | 3.9% – 29.9% |
| Term | 12 - 96 months |
| Interest Rate Type | Fixed |
| Min. Credit Score | 300 |
| Serviced Provinces | Ontario |
5. Dealerhop
$7,000 – $50,000
Loan amount
Loan amount
6.99% – 29.99%
APR
APR
12 - 96 months
Term
Term
Get matched with one of Dealerhop's fulfillment partners to finance, trade-in or sell your car online. Full Review
Best benefits
- Get pre-qualified online for financing. Dealerhop offers competitive interest rates and can match you with a lender.
- Apply easily. Buy, sell or trade-in your current vehicle by filling out a quick and easy online application.
- Get your new car delivered. At-home and in-store vehicle deliveries are available with Dealerhop.
- Accepts all credit scores
- Online and in-person shopping available
- High rates for bad credit
- Offers limited to what's available in the Dealerhop network
| Loan amount | $7,000 – $50,000 |
|---|---|
| APR | 6.99% – 29.99% |
| Term | 12 - 96 months |
| Interest Rate Type | Fixed |
| Min. Credit Score | 300 |
| Fees | $0 |
| Turnaround Time | 24 Hours |
| Serviced Provinces | British Columbia, Alberta, Saskatchewan, Ontario, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland |
6. CarDoor
Starting at $5,000
Loan amount
Loan amount
Starting at 7.99%
APR
APR
12 - 96 months
Term
Term
Secure financing, browse through used vehicles online and have your car delivered to your home with CarDoor. CarDoor made it to both the top 15 most recommended and the top 15 best-rated car loan providers in the Finder: Car Loans Customer Satisfaction Awards 2023. Full Review
Best benefits
- Hundreds of vehicles available. Browse and choose from hundreds of used vehicles.
- Money-back guarantee. If you're unsure about the vehicle, set your mind at ease with a 14 day money-back guarantee.
- Trade-in or sell your current vehicle. You can choose to trade-in or sell your existing vehicle with CarDoor.
- Vehicle delivered to door
- 100% online
- Only available in Ontario
- Limited selection of cars and lenders
| Loan amount | Starting at $5,000 |
|---|---|
| APR | Starting at 7.99% |
| Term | 12 - 96 months |
| Interest Rate Type | Fixed |
| Min. Credit Score | 500 |
| Fees | $130 for registering your licence plate |
| Turnaround Time | Less than 24 hours |
| Serviced Provinces | Ontario |
7. LoanConnect
$500 – $50,000
Loan amount
Loan amount
8.99% – 46.96%
APR
APR
72 - 84 months
Term
Term
LoanConnect is a car loan search platform that can match you with lenders. Get multiple offers within minutes and your funds in as little as 24 hours. LoanConnect made it to the top 15 best-rated car loan providers in the Finder: Car Loans Customer Satisfaction Awards 2023. Full Review
Best benefits
- Get approved with any credit score. LoanConnect works with all types of borrowers.
- Get an offer fast. Get pre-approval offers within minutes after applying.
- Apply without a cosigner. Save time from having to find a cosigner since Canada Auto Finance doesn't require this.
- Easy application
- More choice
- Free service
- Transparent terms
- High loan amounts
- Quick deposits
- No collateral required
- Few eligibility requirements
- Offers limited to LoanConnect's network
- High rates for bad credit
| Loan amount | $500 – $50,000 |
|---|---|
| APR | 8.99% – 46.96% |
| Term | 72 - 84 months |
| Interest Rate Type | Fixed |
| Min. Credit Score | 550 |
| Fees | Varies by lender, loan type and province |
| Turnaround Time | Get pre-approved in as little as 60 seconds, and receive money in as little as 24 hours from the time of your application. |
| Serviced Provinces | All provinces |
8. BMO
Starting at $7,500
Loan amount
Loan amount
Undisclosed
APR
APR
1 - 5 years
Term
Term
Get competitive rates and flexible terms from one of the Big Six banks. Take up to 5 years to repay your car loan. BMO Car Loans won the best traditional car loan lender in the Finder: Car Loans Customer Satisfaction Awards 2023 with an overall customer satisfaction score of 90.77%. Full Review
Best benefits
- Choose between a fixed and variable rate. If you get a fixed rate, it will stay the same throughout the life of the loan. If you get a variable rate, it will go up or down depending on what the Bank of Canada does. Save on interest if the rate goes down.
- Get flexibility. Choose between monthly, semi-monthly, bi-weekly and weekly payments, and defer a payment twice a year if you need to.
- Work with a reputable lender. BMO is one of the largest banks in Canada and can offer low rates if you have a strong financial profile.
- No prepayment penalties
- Apply at a dealership for potentially better rates
- Established lender
- Not as easy to make changes to payments
- Bad credit may not qualify
| Loan amount | Starting at $7,500 |
|---|---|
| APR | Undisclosed |
| Term | 1 - 5 years |
| Interest Rate Type | Fixed |
| Serviced Provinces | All |
9. iA Auto Finance
Undisclosed
Loan amount
Loan amount
Starting at 10.99%
APR
APR
Varies
Term
Term
iA Auto Finance specializes in auto financing for Canadians who can't get approved by a bank. iA Auto Finance was the finalist in the best car loan alternative lender category in the Finder: Car Loans Customer Satisfaction Awards 2023 with an overall customer satisfaction score of 84.00%. Full Review
Best benefits
- Work with an established direct lender. iA Auto Finance is owned by iA Financial Group, which was founded in 1892.
- Reduce your car loan rate every year. It offers the Rate Reducing Loan, which allows you to lower your rate by 10% every year when you make on-time payments.
- Get a loan from an award finalist. iA Auto Finance ranked second in the J.D. Power 2023 Canada Dealer Financing Satisfaction Study for the non-captive, non-prime segment.
- Accepts bad credit
- Established direct lender
- Won't be able to compare offers
- High rates for bad credit
| Loan amount | Undisclosed |
|---|---|
| APR | Starting at 10.99% |
| Term | Varies |
| Interest Rate Type | Fixed |
| Serviced Provinces | All across Canada |
10. TD
$5,000 – $50,000
Loan amount
Loan amount
Undisclosed
APR
APR
96 months
Term
Term
Get TD financing from over 4,500 dealerships. Finance a new or used vehicle, including cars, trucks, RVs, marine vehicles, powersport vehicles and privately sold vehicles. Choose between a fixed and variable rate. TD Car Loans was the finalist for the traditional car loan lender category in the Finder: Car Loans Customer Satisfaction Awards 2023 with an overall customer satisfaction score of 87.94%. Full Review
Best benefits
- Work with one of the Big Six. You'll be getting a competitive car loan from a trusted, experienced lender.
- Get a loan from an award winner. TD ranked first in the J.D. Power 2023 Canada Dealer Financing Satisfaction Study for the non-captive, non-prime segment.
- Compare cars on its easy app. TD Wheels allows you to search for cars based on your price range.
- Lengthy terms
- Finance many types of vehicles
- Use the TD Wheels App to search for a car and pre-qualify for financing
- Payment extensions should you need flexibility
- Pay off your loan without penalty
- No down payment required
- Rate offers limited to TD
| Loan amount | $5,000 – $50,000 |
|---|---|
| APR | Undisclosed |
| Term | 96 months |
| Interest Rate Type | Fixed |
| Serviced Provinces | All provinces |
How we selected the best car loans
At Finder, we spend hundreds of hours comparing and analyzing providers and products. Based on this research, we select the best car loans based on specific criteria and reasons. When choosing the best car loans, we consider each lender’s rates, fees, terms, borrowing amounts, funding speed, borrower perks, customer feedback and awards. Use our list of the best car loan suggestions as a tool — to help you narrow down the options and find the best auto financing to fit your needs. Remember, no single car loan will be the best choice for everyone, so compare your options before applying.
In 2023, we completed the Finder: Car Loans Consumer Satisfaction Awards — an annual ranking of car loan providers in Canada, based on customer satisfaction feedback. Read more about these awards and the methodology used to find the best car loan providers, based on customer service scores.
What is a good interest rate on a car loan in Canada?
A good car loan interest rate is the lowest rate you can negotiate for a car loan. One good method of assessing whether your rate is good or not is to compare the car loan rate to the average interest rate for car financing in Canada. At this point in time, the average interest rate for car financing in Canada is 7.50% — which means most Canadians pay between $400 and $900 per month on a car payment — more if they finance a SUV or truck.
But keep in mind, the car loan interest rate you are offered depends on a number of factors, like your credit score, the cost of your vehicle, how much you want to borrow and for how long, among other details. If you have a good or excellent credit score, you may be able to score an interest rate lower than the national average – anywhere between 0% - 7.5% depending on the make and model, while used car loan rates could range around 8% - 10%. If you have a poor credit score, your car loan rates will probably be higher.
To keep your costs low, you want to find car financing with the lowest car loan interest rate and terms that meet your needs. Generally, the lower the interest rate and the shorter the loan term, the more money you’ll save.
How car loan interest rates are calculated
Most borrowers focus on the prime rate, but lenders use a range of factors to set their rates, with risk assessment and market conditions being among the most important factors.
In general, each lender uses five criteria to set their rates.
Risk assessment
Banks and car loan providers assess the risk of lending to an individual based on their credit score, income, employment history and other financial factors. Borrowers with high credit scores and stable financial situations are generally seen as low risk and may be offered low car loan rates.
Loan term
Car loan providers may offer different interest rates based on the length of the loan term. Most lenders offer their most competitive car loan interest rate with a term that helps them reduce risk and maximize earnings.
Competitive landscape
Lenders use the prime rate to establish a baseline but may choose to adjust their rates based on the competitive landscape. As a result, a lender may lower their rates to remain competitive or increase rates if they are no longer interested in attracting business for a certain loan type or in a specific region of the country.
Market conditions
Interest rates can also be influenced by broad market conditions, such as inflation, economic growth and government policies. Banks and lenders might adjust interest rates in response to these factors to manage risk and ensure profitability.
Loan amount
The loan amount might also impact the interest rate, with large loans or secured loans potentially offered at lower interest rates.
Knowing how or why car loan interest rates change helps borrowers negotiate with lenders to try to secure lower interest rates. Even in a volatile economic environment, borrowers with a strong credit score and secure financial situation should negotiate.
What credit score is required for a car loan in Canada?
While it depends on the lender, it’s possible to get a car loan in Canada with any credit score. Credit scores range between 300 and 900. Anyone with a credit score of 650 and higher is categorized as having good to excellent credit, which indicates to lenders that you pay your bills on time and manage your debts responsibly. People in this category are often eligible for a loan from a bank or standalone lender, at a much more competitive interest rate. People with credit scores between 600 to 649 have a “fair” credit score, while anyone with a credit score of 599 and below is considered to have a “poor” credit score. People with poor or fair credit scores usually end up with interest rates that are higher with lower loan amounts.
To appreciate how your credit score can affect your car loan interest rate, and the overall cost of your new vehicle, consider the following. Suppose you want to purchase a $15,000 car with a $2,000 down payment.
| Credit score | Example interest rate range |
|---|---|
| 300 to 659 | 14% to 29.99% |
| 660 to 900 | 0% to 10% |
Note: The interest rates listed above are examples and do not consider all factors lenders consider when evaluating a loan application.
Where to get a car loan with bad credit in Canada?
While having a bad credit score (scores between 300 and 600) will limit your options, there are plenty of lenders who will still work with you and help you get a car loan. Just don’t be a surprised if the loan amount you qualify for is smaller than you wanted and with higher interest rates.
Car dealerships and online car loan lenders offer bad credit car loans for consumers who are dealing with bankruptcy, bad credit, or no credit at all. With bankruptcy, the process of getting a car loan may take a bit more time because your lender may need more information from your trustee.
What do you need to apply for a car loan in Canada?
Most lenders will ask to see at least three documents when you apply for a car loan:
- Your driver’s licence. Your lender might ask to see your licence or require your licence number. Either way, have it on hand.
- Your insurance card. Some lenders require you to have specific car insurance before applying for car financing.
- Employment verification. You might be asked to submit tax returns, bank statements or recent pay stubs to prove you make enough to afford your car financing.
- Government-issued ID. You’ll need to show ID, like your driver’s licence or passport, to verify your identity.
- Bank account information. Supply direct deposit information to pay for your car or arrange to make your monthly repayments.
Basic eligibility criteria to qualify for car loans in Canada:
- Be at least the the age of majority in your province or territory (18 or 19 years old)
- Be a Canadian citizen or a permanent resident with a valid Canadian address
- Be employed and have a steady income
- Meet credit score and income requirements set out by your lender
FAQs
What’s a good APR for buying a used car?
The APR you qualify for will depend on your personal credit score, the cost of the vehicle, your debt levels and your down payment. If you have excellent credit, expect a good used car loan APR could be as low as 8%. If you have poor credit, then the cost of your used car loan will increase. Borrowers with fair or poor credit shouldn’t be surprised to see APRs as high as 29.99%.
Is 0% financing available in Canada?
While you may come across offers from car dealerships or some online lenders promising 0% financing, remember that most zero-financing deals are difficult to qualify for unless you are considered an exceptional borrower. In order to qualify for low-financing offers, customers typically need to have exceptional credit scores, purchase specific vehicles or provide a large down payment.
What credit score do I need to get 0% financing?
Typically, 0% financing is only available to borrowers with excellent credit scores – between 800 and 900. Dealers typically also consider aspects of your personal finances like your income and debt-to-income ratio when deciding your interest rate.
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