Loans & Debt · Auto loans
Best auto loans in Canada
Shopping a car loan online is frustrating for one reason: no major bank publishes a rate. Auto financing is quoted at the dealer, per applicant. So this page surfaces the few lenders that do post a number, explains how 0% manufacturer financing actually works, and flags the long-term trap that costs Canadians the most.
The lenders that actually publish a rate
Rare in this category — and exactly why they make a strong pre-approval benchmark before you walk into a dealership.
| Lender | Rate | Term | Notes |
|---|---|---|---|
| DUCA (credit union) Direct online credit union | New-car loan 6.90% – 7.60% fixed (1–5 yr terms); 6.94% variable | 12 – 60 months | The cleanest published auto rate in Canada — a direct online new-car loan with posted figures. Used-car rates are not posted. |
| Vancity (credit union) Direct credit union — EV / green loans only | Prime + 1% to + 2% (≈ 5.45% – 6.45%) on electric / low-emission vehicles | 60 months standard; up to 120 months for EVs | A genuinely low published rate, but only for electric and low-emission vehicles. Confirm the exact figure with Vancity before relying on it. |
| iA Auto Finance Non-prime / subprime (dealer channel) | Floor as low as 8.99%; a customer example on its own site shows 29.99% declining-balance | Up to 72+ months | A non-prime lender for weaker credit — the rate you actually get depends heavily on your file and can reach the high 20s. High-cost; treat the floor as best-case only. |
Get a credit-union pre-approval (DUCA posts rates and lends directly) so you arrive at the dealer with a number to beat — the single most effective car-loan move there is.
The big banks: no published rate
Every Big Six bank prices auto loans at the dealer. This is the accurate picture, not a gap in our research.
| Bank | Rate | Max term | Notes |
|---|---|---|---|
| RBC Bank — dealer-arranged (4,500+ dealers) | Not published — quoted at the dealer | Up to 96 months | Also finances EVs, RVs and marine; vehicle must be 10 years old or newer. |
| TD Auto Finance Bank — dealer-only channel (3,700+ dealers) | Not published — quoted at the dealer | Up to 96 months | You cannot apply directly; financing is arranged through the dealership. |
| Scotiabank Bank — dealer-arranged (4,000+ dealers) | Not published — quoted at the dealer | Up to 96 months | New, or used 7 years old or newer; amounts up to $200,000. Payment deferrals available. |
| CIBC Bank — dealer-arranged (3,200+ dealers) | Not published — rate guaranteed 30 days once quoted | Up to 96 months | Vehicle 10 years old or newer; minimum loan $7,500; payment skips allowed. |
| National Bank Bank — direct AND dealer | Not published — quoted on application | Up to 96 months | One of the few big banks you can approach directly rather than only through a dealer. |
| BMO Bank — exited consumer auto lending (2023) | No product | — | BMO stopped offering consumer auto loans in 2023 and now steers car buyers to a personal loan (60-month max — shorter than typical auto terms). |
RBC publishes a personal-loan rate: 10.99%–19.74% fixed (or Prime + 3.24% to + 12.49% variable) — RBC personal loan. A personal loan isn’t a car loan, but it’s one of the few posted rates you can compare — and it lets you buy from a private seller without dealer financing. See also the best personal loans.
How 0% manufacturer financing really works
Manufacturers’ in-house finance arms (Toyota Financial, Honda Financial, Ford Credit, GM Financial) offer subvented rates on select NEW models — the automaker buys the rate down, so advertised APRs run from 0% up to a model-specific cap.
- Promo rates apply only to specific new models and trims, for a limited window, for credit-qualified buyers.
- It is usually an either/or trade: take the low APR OR the cash rebate, rarely both — so a 0% offer can cost more than a higher rate plus the rebate.
- Used-car and standard (non-promo) new rates are materially higher and quoted individually.
- No captive publishes a single fixed financing APR; the rate is set at the dealer after a credit check.
Toyota Financial caps terms at 84 months; Honda offers open loans with no prepayment penalty (both verified first-party).
Frequently asked questions
What is a good interest rate on a car loan in Canada?
It’s hard to even define one, because no major bank publishes a consumer auto-loan rate — financing is quoted at the dealer after a credit check. The few posted figures give a reference: a direct credit-union new-car loan around 7% (DUCA), or a green/EV loan near Prime (Vancity), with Canadian prime at 4.45%. Strong credit on a new car can do better through a manufacturer promo; weaker credit through a subprime lender can run into the high 20s. If a dealer’s quote is far above ~10% and your credit is good, shop it.
Is 0% car financing actually a good deal?
Sometimes — but read the trade. A manufacturer’s 0% (or low-promo) APR is "subvented": the automaker buys the rate down on select new models, and it is almost always offered as an either/or against a cash rebate. Taking 0% can mean giving up several thousand dollars in rebate, so a higher rate plus the rebate can cost less overall. Always price both ways. And 0% applies only to specific new inventory for credit-qualified buyers — used and standard rates are much higher.
Why won’t the bank tell me my car loan rate before I apply?
Because auto financing in Canada runs mostly through the dealer channel — RBC, TD, Scotiabank and CIBC arrange loans through thousands of partner dealers, and the rate is set per applicant at that point. National Bank is one of the few you can approach directly. BMO exited consumer auto lending in 2023 altogether. The practical move: get pre-approved (a credit union like DUCA posts rates and lends directly) so you walk into the dealer with a number to beat.
How long should a car loan be?
As short as you can afford the payment on. Canadian terms now stretch to 84 or 96 months, and the longer the term, the longer you owe more than the car is worth — FCAC warns this "negative equity" gets rolled into your next loan if you trade in early, and that stretching the term to lower the payment means more interest overall. A 60-month term is the traditional ceiling for good reason. Model the payment math with the loan calculator.
Bank, dealer, or credit union — who has the best car loan?
There’s no published winner, so compete them. Credit unions like DUCA post real rates and lend directly — a strong pre-approval benchmark. Dealer/manufacturer financing can beat everyone on a new-car promo, but watch the rebate trade-off. Banks rarely post a rate and route through dealers. Get a credit-union or pre-approval number first, then make the dealer beat it — and never let the focus shift from the car’s price to "the monthly payment."
Sources
- Lender rates & terms verified at each lender’s own pages (linked in the tables above), June 13, 2026.
- Federal criminal-rate cap (35% APR) — Criminal Code s.347
- Extended-term / negative-equity risk — FCAC research (2016)
Educational information, not financial advice. Auto-loan rates are quoted per applicant at the dealer and are not published by most lenders; the figures here were verified at each lender’s own pages on June 13, 2026 and change without notice. Subprime auto rates are high-cost; the federal criminal interest rate caps any consumer auto loan at 35% APR. Manufacturer promo rates depend on model, term and credit, and are often an either/or trade against a cash rebate. Confirm all terms before signing.