Canadian Auto Loan Calculator
Calculate your monthly payments and total loan cost with accurate 2025 tax rates
Note: Fill in the boxes below using price and interest rates based on quotes received from the dealer. You can request a quote in writing, by email, or by phone. You might also find this information on the dealer’s website.
Payment Breakdown
For new vehicles, most lenders require a minimum down payment of 10-20% of the vehicle’s purchase price. For used vehicles, the requirement is typically higher at 15-25%. However, these amounts can vary by lender and your credit history.
Longer loan terms (e.g., 72-84 months) result in lower monthly payments but higher total interest costs over the life of the loan. Shorter terms (e.g., 36-48 months) have higher monthly payments but less interest paid overall.
Most lenders prefer a credit score of 660 or higher for the best interest rates. Scores between 600-659 may still qualify but with higher rates. Below 600, approval becomes more difficult and rates significantly increase.
Yes, most lenders allow you to finance the vehicle price plus taxes, registration, and other fees. This increases your loan amount but reduces the cash needed at signing.
Pre-approval gives you an estimated loan amount and rate before car shopping. Final approval comes after you’ve selected a specific vehicle and the lender verifies all details. Rates and terms may change between pre-approval and final approval.
- Shop around for rates: Compare offers from banks, credit unions, and dealership financing to secure the best interest rate.
- Consider a shorter loan term: While monthly payments are higher, you’ll pay less interest overall and build equity faster.
- Make a larger down payment: This reduces your loan amount, monthly payments, and total interest paid.
- Check your credit report: Review your credit report for errors and improve your score before applying for better rates.
- Get pre-approved: Having a pre-approval gives you negotiating power at the dealership.
- Factor in all costs: Remember to budget for insurance, fuel, maintenance, and potential repairs.
- Read the fine print: Understand all terms, including prepayment penalties and what happens if you miss payments.
- Consider gap insurance: This covers the difference between your loan balance and the car’s value if it’s totaled.
Before you commit to an auto loan, it’s important to understand the potential risks and responsibilities:
- Interest rates can vary significantly between lenders
- Longer loan terms may mean lower monthly payments but higher total interest costs
- Your vehicle’s value may depreciate faster than you pay down the loan
- Defaulting on payments can negatively impact your credit score
- Additional fees and charges may apply beyond the advertised price
- Consider gap insurance to cover the difference between the loan balance and vehicle value if it’s totaled
- Be aware of prepayment penalties if you plan to pay off the loan early