Calculate your monthly payment, find the lowest rate in your province, and walk into the dealership knowing your numbers.
Calculate your monthly payment instantly. Includes provincial tax, down payment, and total interest cost.
Credit unions almost always beat big bank rates by 0.5%–1%. We list them first. Enter your postal code above to filter by your province.
Rates last verified May 2026. Always confirm directly with the lender before applying.
Small moves before you apply can save you thousands. Here's what actually works.
Credit unions are member-owned and typically offer rates 0.5%–1% lower than big banks. If you're not a member, joining is usually free or costs $5–$25.
A pre-approval letter is a powerful negotiating tool at the dealership. Most lenders offer a soft check that won't hurt your credit score.
A 48-month loan costs thousands less in interest than an 84-month one, even if the monthly payment feels higher. Use our calculator to compare.
A larger down payment lowers your loan-to-value ratio, which often unlocks a better rate and helps you avoid being "underwater" on the loan.
You're entitled to a free credit report from both bureaus. Fixing errors before you apply can bump your score and your rate significantly.
Most lenders won't finance a vehicle beyond its 10th year. Check the vehicle age limits before you fall in love with that 2012 model.
Common questions about used car loans in Canada, answered plainly.
A good used car loan rate in Canada is generally anything below 8% APR. Credit unions typically start around 6%–7.5% for borrowers with good credit (680+). The national average in 2026 sits near 6.86%, but rates in Ontario and BC commonly range from 8.2%–9.5% depending on lender and credit profile. Use our calculator above to see exactly what a rate difference means for your monthly payment.
Most Canadian banks and credit unions prefer a credit score of 650 or higher. Scores above 700 typically qualify for the best rates. Below 600, lenders like Canada Drives specialize in all-credit financing — though rates will be significantly higher. Check your score free at Equifax.ca or TransUnion.ca before applying.
Credit unions almost always win on rate, typically 0.5% to 1% lower than big banks because they're member-owned and not-for-profit. In Ontario, Meridian and DUCA regularly offer used car rates starting under 8%, while TD or RBC often start near 8.5%–9%. The tradeoff is that you need to become a member (usually $5–$25), and their branch networks are smaller.
A minimum of 10%–20% is the standard recommendation. A larger down payment reduces your loan amount, lowers monthly payments, and can unlock a better rate. It also protects you from going "underwater" (owing more than the car is worth) as used vehicles depreciate quickly in the first two years.
Most lenders offer terms from 24 to 84 months (2–7 years). Some go to 96 months, but longer terms cost significantly more in total interest. A 60-month (5-year) term is the most common sweet spot. Use the calculator to compare a 60 vs 84-month term. The interest difference is often $2,000–$4,000 on a typical used car purchase.
Yes, in two ways. First, local credit unions vary by province and their availability drives competition (Ontario and BC have the most options). Second, provincial sales tax significantly affects your total financed amount: Alberta has no PST (only 5% GST), while Ontario adds 13% HST and Quebec adds nearly 15%. Our calculator accounts for this automatically when you select your province.
Yes. Lenders like Canada Drives and Smarter.Loans (both listed in our comparison above) specialize in financing for all credit profiles, including scores below 600. Expect rates of 12%–24% or higher. If possible, spend 6–12 months improving your score before applying. Even a 50-point improvement can cut your rate in half and save thousands over the loan term.