Calculate your monthly car payment for auto loans and leases in Canada. Include sales tax (HST/GST), trade-in value, and down payment to get accurate financing estimates for your vehicle purchase.
Canadian Car Financing Guide
Understanding car financing in Canada can save you thousands. This calculator helps you compare loan terms, interest rates, and total costs for your vehicle purchase.
Car Financing vs. Leasing in Canada
- Financing (Loan): You own the car, build equity, no mileage restrictions
- Leasing: Lower monthly payments, always under warranty, must return in good condition
- Cash Purchase: No interest costs, but ties up capital that could be invested
Canadian Sales Tax on Vehicles
Sales tax varies by province and affects your total car cost:
- Ontario, NB, NL, NS, PEI: 13% HST
- Alberta, NWT, Nunavut, Yukon: 5% GST
- British Columbia: 12% (5% GST + 7% PST)
- Manitoba: 12% (5% GST + 7% PST)
- Saskatchewan: 11% (5% GST + 6% PST)
- Quebec: 14.975% (5% GST + 9.975% QST)
Money-Saving Car Buying Tips
- Shop Around: Compare rates from banks, credit unions, and dealer financing
- Consider Certified Pre-Owned: Lower depreciation, warranty coverage
- Negotiate Separately: Price, financing, and trade-in are separate negotiations
- Shorter Terms: Higher payments but less total interest
- Larger Down Payment: Reduces monthly payments and interest costs
Typical Canadian Auto Loan Rates
New Cars: 4-8% depending on credit score and term length
Used Cars: 6-12% depending on age, condition, and credit score
Dealer Financing: Sometimes offers promotional rates (0-2.99%) on new cars