RBC car loans review

Related: Best car loans in Canada

What is RBC?

The Royal Bank of Canada is one of Canada’s “Big Six” banks. It offers a wide range of personal and business banking products to customers, offering Canadians access to credit cards, mortgages, chequing and savings accounts and much more.

RBC’s lending products include personal loans, lines of credit, RRSP loans and car loans.

Is RBC legit?

Founded in Halifax in the 1860s, RBC has its corporate headquarters in Toronto. It’s one of the largest banks in North America in terms of assets, and employs around 97,000 people.

RBC has more than 17 million banking clients around the world and operates in 29 countries. In Canada, it serves customers with a network of over 1,200 branches across the country.

In the J.D. Power 2023 Canada Retail Banking Advice Satisfaction Study, RBC ranked first in customer satisfaction with retail banking advice for a third consecutive year.

Features of an RBC car loan

Feature	Details
Loan amount	From $7,500
Loan term	1 – 8 years
APR	9% - 10%
Serviced provinces	All provinces
Eligibility requirements	Must meet credit score and income requirements, buy a new or used vehicle up to 10 years old

What are the interest rates of RBC auto loans?

RBC car loan rates are not listed on the lender’s website. You’ll need to apply for a loan at a dealership to find out what rate you can qualify for.

As a general guide, the car loan interest rate you get varies depending on factors such as:

• Your credit score and history
• Your income and employment details
• How much you borrow and your down payment amount
• The term of your loan
• Whether you buy a new or used car

RBC also offers special financing rates on vehicles from the following manufacturers:

Related: Car loan interest rates

What we like about RBC auto loans

• Lengthy terms. RBC has terms of up to 96 months for cars and up to 8 months for RVs and boats.
• Flexible payment plans. You can choose to pay off your loan in monthly, semi-monthly, bi-weekly or weekly installments.
• Trade-ins and down payments accepted. You can also opt to trade in your vehicle or provide a lump-sum down payment to bring down the cost of your loan.
• Pre-qualify online. You can fill out an online pre-qualification form to see an estimate of the loan amount you may be eligible to get.
• Newcomers with no credit can apply. RBC has a program dedicated to helping newcomers gain access to credit, even if you don’t have credit history in the country.
• Skip or delay a loan payment. RBC allows borrowers to skip the equivalent of one monthly payment each year and to delay a loan payment.
• Prepayment allowed. You can pay your loan off early without incurring any extra fees.

What to watch out for

• Unclear fees. RBC doesn’t list its fees, so it’s unclear how much you’ll have to pay in terms of service or administration charges.
• Rates not listed. RBC doesn’t specify what it charges on its fixed or variable rate auto loans. Instead, it just says that APRs vary based on available incentive programs, your credit score and terms of your loan.
• Can’t apply online. You’ll need to visit a participating dealership to apply for an RBC auto loan.
• Not suitable for bad credit. Many major bank lenders like RBC typically don’t work with borrowers who have bad credit. Learn more about bad credit car loans.

Alternatives to RBC car financing

What do RBC reviews have to say?

Like many major banks, RBC comes in for plenty of criticism in online customer reviews. Negative reviews commonly mention poor customer service, such as spending a long time on hold when phoning the bank’s customer support line.

However, RBC reviews on Google do vary from branch to branch. So if you plan on doing any face-to-face banking, it’s worth checking the reviews for your local branch.

Finally, while RBC’s mobile banking app has received mixed reviews from Android users (3.5 out of 5 stars from over 36,000 reviews, its iOS app scores an impressive 4.8 out of 5 rating from over 206,000 reviews.

Summary of RBC reviews

Feature	Details
BBB accredited	No
BBB rating	F
Google reviews	Varies from branch to branch
Trustpilot reviews	1.2 out of 5 stars, based on 997 RBC reviews
Facebook reviews	No RBC reviews available
Customer reviews verified as of	22 August 2023

What are the vehicle loans offered by RBC?

There are a few options to consider if you want an RBC car loan:

• Dealership financing. Get approved for a loan to buy a brand new or used car, truck, SUV or minivan from more than 4,500 dealers partnered with RBC. If you’re buying a used car, it must not be more than 10 years old.
• Electric vehicle loans. RBC has a Clean Energy Vehicle Program, providing special rates for select clean energy vehicles from Chevrolet, Chrysler, Kia and Tesla. Learn more about EV financing.
• Newcomer car loans. If you’re a newcomer to Canada, you can apply for up to $75,000 in financing with an RBC car loan. There’s no requirement for Canadian credit history, and terms of up to 96 months are available.
• New or used RV and marine vehicles. Apply for financing for recreational vehicles and boats through participating dealers. Terms of up to 20 years are available. Learn more about RV Loans.

How does borrowing from RBC work?

If you want to take out RBC auto financing, you can’t apply online or by visiting a branch. You will instead need to apply for a loan at the dealership. Here’s what you need to do:

1. Compare vehicle makes and models to find a car that’s right for you. You can search for dealerships that offer RBC car loans on the RBC website.
2. When you’ve found the car you want and you’re ready to buy, tell the dealer you want RBC auto financing.
3. Fill out a financing application with your personal information, contact details, and details of your income and employment.
4. If approved, drive away in your new car.
5. Make monthly, semi-monthly, bi-weekly or weekly repayments towards your loan, and pay off your loan early if possible.
6. You can also manage your loan via RBC Online Banking, allowing you to check your balance, change your payment frequency or skip or delay a payment.

What are the eligibility requirements of an RBC car loan?

RBC doesn’t list its loan eligibility criteria online, specifically the minimum credit score and annual income to qualify.
However, you’ll need to make sure you meet these criteria as a baseline:

• Be a Canadian resident, with a valid address in the province you’re applying for financing in.
• Have a valid driver’s licence and be of the age of majority in your province.
• Must be looking to finance a new or used vehicle at a participating dealership.
• Have a valid Canadian bank account to make payments on time.
• Have a valid Social Insurance Number to pull your credit history.
• Meet the minimum income and credit score.

How to apply for an RBC auto loan

If you’re ready to apply for an RBC auto loan, follow the steps below:

• Book an appointment. Head online or to a local branch to set up an appointment with a loans advisor.
• Get pre-qualified. On the RBC Auto Loans page, click on “Get pre-qualified” to set up an appointment to get pre-qualified for your loan. Plug in your full name, email and phone number and you should hear from an RBC representative that same day.
• Visit a participating dealership. You can also receive an RBC car loan via a local vehicle dealership. You can find a participating dealership near you here.

To apply for an RBC auto loan, you’ll need the following:

• Proof of identity (passport or driver’s licence)
• An idea of how much you want to borrow to purchase your vehicle
• Your Social Insurance Number
• Proof of income (pay stubs or employment letters)
• Your banking information
• Contact information (mailing address, email address and phone number)

Bottom line

RBC car loans are a competitive offering for new and used car buyers. It’s convenient to apply at the dealership, and there are flexible loan terms and payment options available.

Before applying at a dealership, it’s worth getting pre-approval from multiple lenders to find out what interest rate you qualify for.

Frequently asked questions

• I got an RBC Car Loan. Now what?

  Once you’ve made your car purchase with your RBC financing, you’ll need to start making repayments on your loan. Your contract will list the terms of your loan, including your interest rate and loan repayment schedule. Make sure to do the following:

  • Set up a repayment plan. Mark your calendar for due dates or set up automatic withdrawals so you won’t face any late or missed payment penalties.
  • Take advantage of benefits. If needed, benefits such as one skipped payment a year and one delayed payment per year are available.
    Pay off your loan early. If you have the extra cash, RBC says you can pay off some or all of your loan without incurring any prepayment penalties.

• I'm going to be late with my loan payment. What should I do?

  If you’re having trouble keeping up with payments, contact RBC immediately. You can visit a physical branch near you or call their customer support line.

• Do I need to be an existing RBC customer to qualify for a car loan?

  No, you don’t. You may finance a vehicle through RBC even if you don’t have an RBC chequing or savings account.

• Can I skip a payment on my RBC car loan?

  With an RBC Car Loan, you may skip a monthly payment each year but only if you qualify. Interest will still accrue on the outstanding balance.

• How can I find a dealer that offers RBC car loans?

  You can use the “Find a Dealer” tool accessible through the RBC website to find car dealerships that offer RBC auto financing.