Car Loan Calculator — Canada
Estimate your monthly car-loan installment in CAD using Canada's typical auto-finance rates, and see the full interest cost. No signup, no account needed.
Enter a car price, a down payment of 0–90%, a rate between 0% and 100%, and a term above zero (up to 50 years) to see results.
Car finance rates in Canada (2026)
Car loans in Canada typically run about 6–8% p.a. new, 8–11% used. Manufacturers often run promotional rates around 0–3.99% on select models.
These are reference figures for 2026 - always confirm the current rate and the effective (reducing-balance) APR with the lender before you commit.
Where to get a car loan in Canada
Commonly used providers include TD Auto Finance, Scotiabank, RBC and Ford Credit Canada. Rates and terms vary by lender, your credit profile, and whether you are buying new or used - it pays to compare at least two or three offers.
Deposit and loan term
Deposit requirements vary by lender. Loan terms run up to about 96 months (8 years). A bigger deposit and a shorter term both cut the total interest you pay - use the calculator above to see the trade-off for your own numbers.
Worked example
For every $32,000 financed at 2.99% over 5 years:
- Monthly installment: $575
- Total repaid: $34,491
- Total interest: $2,491
Scale to your financed amount, and remember a bigger deposit and shorter term lower the total interest.
How to pay less interest on your car loan
- Put down a larger deposit - it reduces both the monthly payment and the total interest.
- Pick the shortest term you can comfortably afford; a longer term lowers the monthly cost but raises the total.
- Compare the effective reducing-balance rate, not a headline flat rate - a flat rate looks cheaper than it really is.
- A stronger credit profile usually earns a lower rate, so it is worth checking before you apply.
A named-lender rate check: TD Auto Finance (2026)
Major Canadian banks generally don't publish a single advertised auto-loan APR — financing is arranged per-applicant through a dealer. TD Auto Finance points buyers to its own special-rates offers and lends over terms up to 96 months on select vehicles — check TD's site for the current rate. For the broader market, Bank of Canada data put the average rate on new chartered-bank auto loans at 6.66% in July 2026.
A more realistic example: financing C$30,000 at 2.99% over 5 years works out to about C$539/month, with total interest of roughly C$2,336 — treat 2.99% as an illustrative promotional rate rather than a universal one, since actual approvals depend heavily on credit profile.
Sales tax on your car purchase depends entirely on your province
Canada has no single national sales-tax rate on vehicles: what you pay on top of the sticker price depends on where you register the car. As of the 2026 tax year, Ontario charges 13% Harmonized Sales Tax (HST) while Nova Scotia, New Brunswick, Newfoundland and Labrador, and Prince Edward Island charge 15% HST. Alberta, the Northwest Territories, Nunavut and Yukon charge only the 5% federal GST with no provincial sales tax on top. British Columbia, Manitoba and Saskatchewan charge 5% GST plus a separate provincial sales tax (7%, 7% and 6% respectively), and Quebec charges 5% GST plus 9.975% Quebec Sales Tax (QST). On a C$30,000 vehicle, that's the difference between C$1,500 in Alberta and roughly C$4,500 in Nova Scotia or New Brunswick — worth factoring into your total budget, not just the loan payment this calculator estimates.
Canada's criminal interest rate cap on car loans
Every consumer loan in Canada, including car financing, is subject to the Criminal Code's criminal-rate-of-interest ceiling. Effective 1 January 2025, that ceiling was lowered from an effective annual rate of 60% to an annual percentage rate (APR) of 35%, covering the total cost of credit — interest plus most fees and charges — not just the headline interest rate. A lender that charges an individual borrower more than the applicable cap is committing a criminal offence, regardless of province. In practice this ceiling is far above the roughly 6–11% rates most banked borrowers see; it mainly protects thin-file or subprime borrowers who might otherwise be steered into very high-cost dealer financing.
No cooling-off period, but dealers must disclose in writing
Unlike some other consumer contracts, there is no general “cooling-off period” for buying a car in Canada — once you sign a purchase or finance contract with a registered dealer, the sale is final, and trying to cancel afterward can expose you to liquidated damages the dealer is entitled to claim. In Ontario, the province's dealer regulator, the Ontario Motor Vehicle Industry Council (OMVIC), requires every registered dealer to disclose material facts about a used vehicle in writing before you sign — including prior use as a taxi, police car or rental, any known damage over $3,000, and whether the vehicle carries a salvage or rebuilt brand — because verbal disclosures alone don't satisfy the law. Other provinces have their own dealer regulators (such as Alberta's AMVIC or British Columbia's VSA) with broadly similar written-disclosure requirements, so read the disclosure statement, not just the numbers on this calculator, before you sign.
Frequently Asked Questions
What is the typical car loan rate in Canada?
As a 2026 reference, car finance in Canada runs about 6–8% p.a. new, 8–11% used. Your actual rate depends on the lender, your credit profile, and whether the car is new or used.
How much deposit do I need for a car loan in Canada?
Deposit requirements vary by lender. A larger deposit lowers both your monthly payment and the total interest you pay.
Which lenders offer car loans in Canada?
Commonly used providers include TD Auto Finance, Scotiabank, RBC and Ford Credit Canada. It pays to compare two or three offers, since rates and terms vary by lender and by your credit profile.
How is the car loan installment calculated?
Using the reducing-balance formula P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1) on the financed amount. Dealers may quote a lower-looking flat rate; convert to the effective rate to compare.
Is car financing regulated in Canada?
Auto loans from federally regulated banks in Canada fall under OSFI's supervision; provincial regulators oversee non-bank and dealer financing.
What car loan rate does TD Auto Finance advertise?
TD does not list a single headline auto-loan rate on its car-loan page; it points to current special-rate offers, with terms up to 96 months on select vehicles — check TD's site for today's rate. Actual approved rates depend on credit score, loan term, vehicle age, and down payment.
Why don't Canadian bank websites (TD, Scotiabank, RBC) list a car loan rate directly?
Major Canadian banks typically don't publish a single advertised auto loan APR on their own websites because auto financing is arranged through dealers and priced individually based on the applicant's credit, term, and vehicle.
What is the average car loan interest rate in Canada right now?
Bank of Canada data show the average rate on new auto loans from Canadian chartered banks was 6.66% in July 2026, with a wider observed range of roughly 3%–10%+ APR depending on the borrower's credit tier and whether the loan is a promotional new-car rate.
How much sales tax will I pay on a car in Canada?
It depends on your province. As of the 2026 tax year: Alberta and the northern territories charge only 5% GST; Ontario charges 13% HST and the other Atlantic provinces charge 15% HST; British Columbia, Manitoba and Saskatchewan charge 5% GST plus a 6-7% provincial sales tax; and Quebec charges 5% GST plus 9.975% QST.
Is there a maximum legal interest rate on a car loan in Canada?
Yes. Since 1 January 2025, the Criminal Code caps the total cost of credit on any loan to an individual, including car loans, at a 35% annual percentage rate; a lender charging more is committing a criminal offence.
Can I cancel a car purchase contract in Canada after signing?
Generally no. Canada has no general cooling-off period for vehicle purchases, so a signed contract with a dealer is final and cancelling can expose you to liquidated damages. Registered dealers must, however, give you written disclosure of material facts (such as prior taxi or rental use, damage, or salvage branding) before you sign.
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Sources
Rates are compiled from each country's central-bank publications and the typical offerings of its major commercial banks, reviewed for 2026 and subject to change — always confirm the current rate with a lender before deciding. See our methodology and editorial policy for how we source and update this data.
Additional sources for this page
Bank of Canada, Interest rates charged for new and existing lending by chartered banks — auto loans, July 2026 (accessed 15 October 2026). TD Canada Trust, Car Loans & Flexible Financing Options (accessed 15 October 2026). See our methodology and editorial policy for how we source and update this data.
- TaxTips.ca — 2026 Sales Tax Rates by Province (accessed 26 September 2026)
- Canada Gazette — Criminal Interest Rate Regulations (SOR/2024-114) (accessed 26 September 2026)
- OMVIC — No cooling-off period: what Ontario car buyers need to know (accessed 26 September 2026)