Car loans in Canada: payment calculator, how to get one and what to compare

Pick your province, then enter the price, down payment, trade-in and the rate and length from your offer. You can also start from your monthly budget and see the most car it supports.

• Set a budget with the calculator. Use the monthly budget mode so the car fits the payment, not the other way around. Add insurance, fuel and upkeep, which the loan does not cover.
• Check your credit report and look for mistakes before a lender sees it. Our free credit report guide shows how to get yours.
• Ask your own bank or credit union first. The FCAC says you may be able to get a loan or line of credit directly, and to negotiate a better rate if you have a bank account, a mortgage and a credit card in good standing. OMVIC says an offer from your bank gives you something to compare with the dealer's.
• Ask the dealer for its offer too, and ask which lenders received your application. OMVIC says dealers can reach many lenders, and that many applications can lower your credit score.
• Compare the total cost of borrowing, not only the payment. OMVIC says to look at the monthly payment, the price of the car and the total cost of borrowing.
• Check that the application is accurate, and get every spoken promise written into the contract. OMVIC gives both as advice.
• Before you sign, run the numbers once more in the calculator, with the exact tax and fees from the contract.

Sources: FCAC: Car financing options (modified October 14, 2025, read November 12, 2026); OMVIC, Ontario's vehicle dealer regulator: Car loans (last modified November 7, 2023, read November 12, 2026).

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Source: FCAC: Car financing options (modified October 14, 2025, read November 12, 2026). The FCAC says leases usually have lower payments than a loan with the same term, but you may pay more overall and will not own the car at the end. Breaking a lease early may be very costly, and extra charges such as wear and tear can apply.

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• Dealer financing: the dealer arranges the loan with a manufacturer's finance company, a bank or credit union, or an independent finance company.
• Direct financing: a car loan or line of credit from your own bank or credit union.
• Rent-to-own plans are usually offered by dealers or car rental companies.

Source: FCAC: Car financing options (modified October 14, 2025, read November 12, 2026).

OMVIC says dealers often earn a fee called a reserve, and that higher-rate loans usually pay dealers more. That is a reason to ask what rate the lender approved you for and to compare it with your own bank's offer.

OMVIC also says your credit score largely decides the rates and terms you are offered, and that people with good credit can usually get the best rates or negotiate them.

Source: OMVIC, Ontario's vehicle dealer regulator: Car loans (last modified November 7, 2023, read November 12, 2026). OMVIC covers Ontario dealers. Other provinces have their own regulators.

Tax adds to what you borrow if you finance it. This table shows the general rate on a dealer purchase. Private sales, electric vehicles and trade-in rules can differ, so ask for the tax in writing.

Sources: CRA: GST/HST rates by province (the page lists April 1, 2025; its metadata shows October 7, 2026; read November 12, 2026); BC Ministry of Finance: PST Bulletin 308, PST on Vehicles (issued June 2013, revised August 2026, read November 12, 2026). The BC bulletin gives different rates for private sales (12%) and for electric vehicles. We did not check each province's rules for trade-ins or private sales, so the calculator lets you type your own rate.

A longer loan lowers the payment and raises the total interest. OMVIC warns that loans of 84 to 108 months can lead to owing more than the car is worth. The calculator shows five lengths side by side and the balance left at the end of each year, so you can compare it with what the car is likely worth.

Here is one example from our own arithmetic, on a $25,000 loan at a made-up 15% with equal monthly payments. The rate is not an offer.

Going from 36 to 84 months lowers the payment by $385 a month but adds $9,324 in interest.

• The tax, fees and rate in the contract match what you were told.
• Any promise made out loud is written in the contract (OMVIC).
• You know the total cost of borrowing, not only the payment (OMVIC).
• You asked which lenders received your application (OMVIC).
• You know what happens if you want to end a lease or pay the loan off early. The FCAC says breaking a lease early may be very costly.
• If the rate quoted is very high, read our guide to the criminal interest rate and high-cost loans before you agree.

Sources: OMVIC, Ontario's vehicle dealer regulator: Car loans (last modified November 7, 2023, read November 12, 2026); FCAC: Car financing options (modified October 14, 2025, read November 12, 2026).

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A car costs more than its payment. Check insurance, fuel and how fast it loses value before you decide how much to spend.

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