Best Banks for Car Loans in Canada
Obtaining a cheap car loan is a crucial step in purchasing a car in Canada. Choosing the best bank for a car loan can be challenging due to the abundance of options available, including loans from major banks, credit unions, and alternative lenders. With the right loan, you can get low interest rates, flexible terms, and lower monthly payments, which will make buying a car more affordable in the long run. We’ll look at some of the best Canadian banks for car loans and talk about their features, perks, and what makes them stand out in the crowded auto loan market.
1. Royal Bank of Canada (RBC)
 One of the biggest and most reputable banks in Canada is the Royal Bank of Canada (RBC). It also has excellent choices for car loans. RBC has low interest rates on loans for both new and used cars. For new cars, RBC’s car loan rates start as low as 4.99%, and you can pay it back over up to 72 months. People can also apply for a loan online, which makes it simple for them to compare rates and get pre-approved quickly.
One excellent thing about RBC car loans is that they are flexible. RBC offers flexible payment choices so that borrowers can pick the term length that works best for them. RBC has car loan options for people in a range of financial situations, whether they want a short-term loan or a longer repayment time. RBC is also a favorable choice for Canadians who want to buy a car because they have outstanding customer service and a safe online application process.
2. TD Canada Trust
 One of the best places to get a car loan in Canada is TD Canada Trust. For new cars, TD’s car loan rates start at a reasonable 5.24%, and terms range from 24 to 84 months. There are no early payment fees with TD’s car loans, and the bank’s loan terms are known to be clear. This function can be very helpful if you want to pay off your loan early, as it won’t charge you extra for doing so.
Customers can easily start the process of getting a car loan from TD Canada Trust because they let customers apply and get pre-approved online. One excellent thing about TD’s car loans is that they offer flexible payment plans. Depending on your funding, you have the option to make payments every week, every two weeks, or every month, allowing you to choose the payment plan that best suits your needs. Additionally, many positive reviews highlight TD’s customer service’s ease of use and personalized assistance.
3. Scotiabank: Best for Comprehensive Auto Financing Packages
One of Canada’s “Big Five” banks, Scotiabank, offers a variety of auto financing choices, such as loans for both new and used cars. For new cars, Scotiabank has reasonable rates starting at 5.99%, and you can get a loan for up to 84 months. You can also apply for loans online, which makes it simple and quick to get pre-approved by the bank.
Scotiabank’s car financing packages are what make it stand out from many other lenders. Scotiabank offers both loans and leases for cars, which can be helpful for people who don’t want to own them for a long time. Through their “Scotiabank Auto Financing” program, people can borrow money to pay for not only the car but also costs like taxes, fees, and even security plans for it. Scotiabank is a wonderful choice for people who want to finance their car all in one place because they offer flexible loan terms and can bundle multiple vehicle-related costs.
4. CIBC: Best for Fast Approval Process and Easy Online Application
The Canadian Imperial Bank of Commerce (CIBC) is known for how quickly and easily it approves loans. This can be a big plus for people who need to buy a car quickly and require financing. If you want to buy a new car, CIBC has loans with rates starting at 5.45% and terms from 24 to 72 months. One excellent thing about CIBC is that they have a quick approval process. Once approved, you can often receive the money within one working day, enabling you to quickly purchase your car.
To apply for a car loan through CIBC, the web form is simple and straightforward to use. This makes the process simple for busy Canadians. CIBC also gives borrowers a range of payment choices, so they can set up automatic payments or make one-time payments without any fees. CIBC is also a favorable choice for car loans because they have a favorable reputation for customer service and being honest. This bank is a fantastic choice for people who need to get money quickly and have an effortless application process.
5. BMO Bank of Montreal: Best for Special Offers and Discounts
Another excellent choice for Canadians who want to borrow money for a car loan is the Bank of Montreal (BMO). The interest rates on BMO’s car loans start at 5.99% for new cars, and the terms can be anywhere from 24 to 84 months. One of the best things about BMO is that they often offer special deals, such as lower interest rates or fewer fees for car loans, provided you purchase your car from one of their store partners. You can save a lot of money on your car loan with these deals.
BMO is a fantastic choice for both first-time buyers and experienced car owners who want to upgrade because it offers open loan terms and a wide range of loan amounts. Additionally, the bank offers a swift and straightforward online application process, enabling individuals to receive approval prior to visiting a dealership. If you want to get a car loan with the chance of getting extra discounts or special deals, BMO is a beneficial option to think about.
6. National Bank of Canada
 National Bank of Canada (NBC) has low interest rates on car loans, with rates starting at 6.25% for brand-new cars. They offer flexible loan terms of up to 84 months and different ways to pay it back, such as weekly, biweekly, or monthly installments. NBC is known for having excellent individual customer service, which can help people who are buying their first car and may need more help with the car loan process.
Online applicants for car loans at National Bank can do so directly through their website, and the process is simple to follow. If you’d rather talk to someone in person, NBC has branches all over Canada where you can meet with an advisor to talk about your financial needs. You can also get pre-approved for a loan through NBC before you even start looking for a car. This makes the process of getting a car easier and faster.
7. Desjardins: Best for Competitive Rates and Member Benefits
Desjardins is a cooperative financial group that works all over Canada. Both members and non-members can get car loans from them. Desjardins has some of the best rates on car loans, with rates as low as 5.20% for brand-new cars. Desjardins gives you the choice of making payments every week, every two weeks, or once a month, and the loan terms run from 24 to 72 months.
One thing that makes Desjardins stand out is the extra perks that members can get. If you are a member of Desjardins, you can get better deals on car loans and other financial services like insurance and investments. Membership or willingness to join can save you a lot on your car loan. Desjardins also gives you access to an easy-to-use online platform that makes getting a car loan and handling it quick and simple.
8. Credit Unions and Alternative Lenders
There are a lot of big banks in Canada that offer car loans, but credit unions and other alternative lenders are also excellent options, especially for people with inadequate credit. Credit unions like Tangerine, Alterna Savings, and Vancity in British Columbia offer low rates and one-on-one care. Some of these places may be more open to giving money, which makes them a beneficial choice for people with inadequate credit or who want a more personalized borrowing experience.
It’s possible that credit unions charge less for loans and have lower interest rates than regular banks. Member-focused, they provide more personalized service, which can help first-time car buyers. It is important to compare rates and terms with other lenders, though, since credit unions may not have as many offices or online services in some areas.
Conclusion
Getting the best car loan is an important part of getting a car. Picking the right bank or lender can save you a lot of money in interest over the life of the loan. Major banks like RBC, TD, Scotiabank, CIBC, and BMO have low rates, open terms, and excellent customer service, which makes them strong candidates for your car loan needs. Credit unions and other alternative lenders may also be excellent choices if you want more personalized service or lower rates. You should look at different lenders’ rates and pick a loan that fits your needs and goals, no matter which lender you pick.