Best Car Loans in Canada, Even With Less-Than-Perfect Credit

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The rate on your car loan in Canada can matter as much as the sticker price. Over seven years, a few points of interest add up to thousands of dollars.

We compared a big bank, a credit union group, an online matching service and a non-prime lender, using only what each one publishes.

Quick answer: With good credit, get a quote from your own bank or credit union before you visit a dealer: RBC finances through over 4,500 dealerships with 1- to 8-year terms, and Desjardins’ Auto+ Loan runs up to 20 years from $15,000. With weaker credit, Canada Drives matches you with a partner dealer after an online application, and Rifco, a non-prime lender that works through dealers, advertises rates from 12.9% as of September 2026. Always compare the total cost, not the payment.

Updated on September 23, 2026 · Sources: RBC, Desjardins, Canada Drives, Rifco, FCAC

Key takeaways

A dealer doesn’t have to show you the cheapest financing it can get, FCAC says. Bring your own quote.
Longer terms lower the payment but raise the total cost. In FCAC’s example, a $25,000 car at 5% costs $26,974 over 36 months and $29,681 over 84.
In most provinces there is no cooling-off period on car loans. Once you sign, you’re committed.
Non-prime lenders serve weaker credit, at a much higher price.

Car loans in Canada at a glance

Lender	Best for	Key numbers
RBC car loans	Buying at a dealership	1–8 years · 4,500+ dealers
Desjardins Auto+ Loan	Private sales, long terms	From $15,000 · up to 20 years
Canada Drives	Shopping with any credit	Online application · dealer match
Rifco	Non-prime borrowers	Rates from 12.9% · via dealers

Terms as of September 2026, from each lender’s official page. Banks and credit unions quote rates individually.

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1. RBC car loans

RBC lends through a large dealer network, so you can arrange financing at the point of sale.

At a glance

Where: financing at over 4,500 dealerships in Canada.
Term: 1 to 8 years, for vehicles up to 10 years old.
Payments: weekly, bi-weekly, semi-monthly or monthly; no prepayment penalty.
Rate: quoted on approval; special rates through some manufacturers.
Newcomers: RBC’s Newcomer Automotive Loan Program is for people new to Canada within the last three years, including those with no Canadian credit history.

Pros and cons

My Auto Affordability Tool gives an estimate before you shop.
Paying off early costs nothing extra.
No published rate, so compare quotes yourself.
Only at dealers enrolled in the RBC program.

How to apply

Ask for RBC financing at a partner dealer, or apply for an RBC personal loan directly.

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2. Desjardins Auto+ Loan

Desjardins’ Auto+ Loan at a caisse suits buying from a private seller, and it covers more than cars.

At a glance

Amount: $15,000 minimum; up to 100% of the purchase can be financed.
Term: up to 20 years, depending on amount and vehicle type.
Rate: fixed or variable, based on the loan amount. Rates vary with vehicle type, term and your credit score.
Prepayment: in part or in full, any time, no prepayment penalty.
Vehicles: cars, SUVs, motorcycles, boats, trailers and motorhomes.

Pros and cons

Switch between fixed and variable without fee or penalty.
Works for private sales, which many lenders avoid.
A 20-year term on a car can cost far more than the car is worth later.
$15,000 minimum is too high for cheaper used cars.

How to apply

Members book an appointment in AccèsD; non-members can schedule a call.

3. Canada Drives

Canada Drives is not a bank. You apply online, then it connects you with a local partner dealership.

At a glance

How it works: online application, then a dealer shows vehicles you qualify for.
Credit: Canada Drives says its partner dealers have special finance programs for all credit situations.
Rate: not published; the dealer’s lender sets it. Check the current terms before you sign.
Timing: it says it can typically put you in a car in as little as 48 hours.

Pros and cons

You know your budget before you shop.
Useful after a bank has said no.
No rate until the dealer quotes; subprime rates can be high.
You choose from the partner dealer’s stock.

How to apply

Fill out the online form. Get the full loan terms in writing before signing any sales agreement.

4. Rifco

Rifco National Auto Finance is a non-prime lender. You don’t apply directly; you get Rifco financing through a partner dealer.

At a glance

Rate: advertised “as low as” 12.9%, as of September 2026. Your rate depends on your file.
Who it serves: full-spectrum non-prime borrowers, across Canada.
How to apply: ask a dealer that works with Rifco.

Pros and cons

An option for borrowers banks decline.
Even the starting rate is high, and most borrowers pay more.
No direct application; the dealer controls the deal.

How to choose

Choose RBC if you’re buying from a dealer, have good credit, or are a recent newcomer.
Choose Desjardins if you’re a member buying privately or financing an RV or boat.
Choose Canada Drives if you’ve been declined and want to shop within an approved budget.
Consider Rifco only after bank, credit union and online options, and compare the total cost.

Credit unions often price car loans well; see our guide to credit union loans outside the big banks. New to the country? Start with banking for newcomers in Canada to build a file first.

Checklist before you sign

Know your score first; our guide to checking your credit score for free helps.
Get at least two quotes: your bank or credit union, and the dealer.
Compare the total cost over the full term.
Ask about dealer administration fees; FCAC says they may be negotiable.
Sign only the credit application until you decide. Never sign with two dealers.
Confirm there is no prepayment penalty.

Warning signs

Be wary of anyone promising a car loan with no credit check or approval before seeing your income. Unregulated lenders use those promises to charge huge fees. Under the criminal interest rate in the Criminal Code, lenders may not charge more than 35% a year, fees included, as FCAC explains. See our guide to fraud and scams in Canada.

How we compared these lenders

Sources: each lender’s official page and FCAC, checked on September 23, 2026 for every offer.
Criteria: published rates, terms, prepayment rules, how you apply and fit for weaker credit.
Order: not a ranking. Bank and credit union first, since they usually cost less with good credit, then options for weaker credit. See the Quick answer for where to start.
Excluded: Clutch, because its financing terms could not be read on its official page today.
Independence: no lender paid for placement.

Not financial advice. Rates and terms checked on September 23, 2026 with each provider’s official page; confirm before applying.

FAQ

How do I use a car loan calculator in Canada?

Enter the price, down payment, rate and term. Look at total interest, not only the payment. RBC has a free car loan payment calculator.

What do Reddit threads say about car loans in Canada?

A common tip is to get a bank or credit union quote before the dealer’s finance office. That matches FCAC’s advice. Check every number with the lender.

What credit score do I need for a car loan in Canada?

There’s no single minimum. Better scores get better rates. Non-prime lenders like Rifco serve weaker files at higher cost.

Is a longer car loan a bad idea?

It lowers the payment but adds interest. In FCAC’s example, going from 36 to 84 months adds $2,707 on a $25,000 car at 5%.

Can I cancel a car loan after signing?

Usually not. FCAC says most provinces have no cooling-off period for car loans. Check with your provincial consumer affairs office.

For the full picture, see our hub Best Personal Loans in Canada 2026, our list of the best personal loans in Canada and our guide to loans for bad credit in Canada.

Sources

Ieveera SEO is an independent publisher, not a bank or financial advisor; content is for information only and may include paid affiliate links that never affect our rankings — always confirm current rates and terms with the provider. Rates shown in CAD; verify with the issuer.