Car Loan Rates in Canada: Monthly Tracker, Bank Average vs Non-Prime

The average car loan interest rate in Canada was 6.66% (July 2026, Bank of Canada), the rate chartered banks charged on new and renewed auto loans. That average covers chartered banks only and blends all credit tiers, so fair and poor credit pay more.

Loans Canada, a loan marketplace, estimates about 12% to 19% APR for fair credit and 19% up to the 35% legal maximum for poor credit (estimates, updated July 10, 2026).

This tracker sets every month of the Bank of Canada’s auto loan series since July 2016 beside a lender panel checked on each lender’s own website.

The two non-prime finance companies in the panel that publish a starting rate advertise 8.99% (iA Auto Finance) and 12.9% (Rifco). The widest published ranges, all personal-loan rates, stop at 35%, Canada’s criminal rate (provider pages, checked October 15, 2026). The Bank’s numbers are national, and the panel covers BC, Alberta and Ontario.

Source: Bank of Canada, Valet series V39079, V80691311 and V122667805, refreshed daily. The auto loan figure covers chartered banks only and runs about two to three months behind.

Insight 01

Bank auto loan rates went from 3.71% in August 2016 to 8.33% in November 2023, and have held near 6.6% in 2026

Canadian chartered banks charged an average 6.66% on auto loans in July 2026, 1.5 points more than the 5.16% of February 2020, before the pandemic (Bank of Canada, series V122667805). The series’ low was 3.71% in August 2016, when the policy rate was 0.50%. Its high was 8.33% in November 2023, four months after the policy rate reached 5.00%.

The 2023 average of 7.93% is the highest full year on record, and January to July 2026 averages 6.63% (our calculation from Bank of Canada data).

Year	Average rate
2017	4.10%
2018	4.77%
2019	5.01%
2020	4.53%
2021	4.65%
2022	6.34%
2023	7.93%
2024	7.51%
2025	6.76%
2026 (Jan to Jul)	6.63%

Source: Bank of Canada Valet, series V122667805 (also Statistics Canada table 10-10-0006-01). Annual figures are our simple averages of the monthly volume-weighted rates.

The table below reloads daily from the Bank of Canada. Its last column, the rate on loans still being repaid, is explained in Insight 03.

Month	New and renewed auto loans	All outstanding auto loans
Jul 2026	6.66%	6.83%
Jun 2026	6.55%	6.83%
May 2026	6.66%	6.84%
Apr 2026	6.57%	6.85%
Mar 2026	6.53%	6.86%
Feb 2026	6.72%	6.86%
Jan 2026	6.71%	6.86%
Dec 2025	6.37%	6.87%
Nov 2025	6.45%	6.87%
Oct 2025	6.50%	6.88%
Sep 2025	6.64%	6.89%
Aug 2025	6.68%	6.89%
Jul 2025	6.82%	6.90%
Jun 2025	6.90%	6.89%
May 2025	6.88%	6.88%
Apr 2025	6.81%	6.87%
Mar 2025	6.93%	6.87%
Feb 2025	7.08%	6.79%
Jan 2025	7.11%	6.77%
Dec 2024	6.76%	6.75%
Nov 2024	6.92%	6.74%
Oct 2024	6.87%	6.73%
Sep 2024	6.94%	6.71%
Aug 2024	7.50%	6.69%

Source: Bank of Canada Valet, series V122667805 and V122667811 (also Statistics Canada table 10-10-0006-01). Loaded October 16, 2026.

Canadians are borrowing more per car but taking out fewer loans. Equifax Canada reported these figures for the second quarter of 2026 (August 24, 2026):

• Auto loan balances of $179.1 billion, up 4.9% on a year earlier.
• 9.2% fewer new auto loans opened.
• The average new loan up to $36,979 from $34,713.
• 90-day auto delinquency eased to 1.10% from 1.11%.

Unlike the Bank of Canada rate, Equifax’s balances include captive finance companies.

Insight 02

Since its first cut in June 2024, the policy rate has fallen 2.75 points; bank auto rates fell 1.11

Bank auto loan rates captured 40% of the Bank of Canada’s cuts from June 2024 to July 2026, by our calculation from Bank of Canada data. Over that period the policy rate fell 2.75 points, from 5.00% at the end of May 2024 to 2.25%. The average bank auto loan rate fell 1.11 points, from 7.77% to 6.66%.

Pass-through was higher on the way up. From February 2022, the last month before the first hike, to the November 2023 peak, the auto rate rose 3.22 points (5.11% to 8.33%). The policy rate rose 4.75 points (0.25% to 5.00%), so pass-through was 68%. Measured from the peak, auto rates have fallen 1.67 points, but 0.56 of that came before the first cut.

Phase and series	Change (points)
Hikes: policy rate, Feb 2022 to Jul 2023 peak	+4.75
Hikes: bank auto rate, Feb 2022 to Nov 2023 peak	+3.22
Cuts: policy rate, May 2024 to Jul 2026	-2.75
Cuts: bank auto rate, May 2024 to Jul 2026	-1.11

Source: Bank of Canada Valet, series V39079 (month-end) and V122667805. Our calculation.

The spread between the bank auto rate and the policy rate shows the same thing. It was 4.86 points in February 2022 and narrowed to 2.77 in May 2024 (2.69 at its September 2024 low). By July 2026 it was back to 4.41, wider than the 3.34-point average from July 2016 to February 2020.

Our reading, which the data cannot prove: multi-year fixed-rate car loans track longer-term borrowing costs more than the overnight rate. The policy rate has been 2.25% since late October 2025. Since then the bank auto rate has stayed between 6.37% (December 2025) and 6.72% (February 2026) (Bank of Canada).

Insight 03

New bank auto loans have been cheaper than the average existing loan for 13 straight months to July 2026

In July 2026, new and renewed bank auto loans averaged 6.66%, below the 6.83% average on bank auto loans still being repaid (Bank of Canada, series V122667805 and V122667811). New loans have been priced under the outstanding book for 13 straight months since July 2025, the longest run since the series began in July 2016. The previous record was 8 months, June 2020 to January 2021 (our count).

In January 2023 it was the other way round: new loans averaged 8.03% against 5.40% for the outstanding book, a 2.63-point gap. That was because most loans being repaid had been signed when rates were low. As those were replaced, the outstanding rate climbed to a peak of 6.90% in July 2025. The widest gap the other way was 0.50 points in December 2025 (our calculation).

A 0.17-point average gap is not by itself a reason to refinance. But a bank borrower who signed in 2023, when new loans averaged 7.93%, is probably paying more than a comparable borrower signing today.

Insight 04

Non-bank lenders publish starting rates above the bank average, and most publish no rate at all

In our October 2026 panel, 10 of the 14 non-bank car loan providers publish no auto-specific rate: six publish no rate at all and four only personal-loan ranges. The two non-prime finance companies that do publish a floor, iA Auto Finance and Rifco, start above the July 2026 bank average (NotchUp panel, provider sites checked October 15, 2026).

The bank average leaves out the lenders weaker-credit borrowers use. It covers chartered banks and foreign bank branches only (Bank of Canada notes). So credit unions are outside it, and so are finance companies such as:

• iA Auto Finance
• Santander Consumer
• Rifco

The tiles below are computed from the panel and recalculate whenever a row is re-checked or expires.

iA Auto Finance advertises “rates from as low as 8.99%” and Rifco “Rates as low as: 12.9%”, neither with a term or ceiling. Prefera Finance says its rates “go as high as 28%” for more challenging credit (all checked Oct 15, 2026). These lenders publish no rate, and you see theirs only through a dealer:

• Santander Consumer
• EdenPark
• LendCare

Provider	APR as published	Term	Provinces	How to apply	Last verified
EdenParkThrough a dealer	Not published	Not published	BC, AB, ON	Through a participating dealerWholly owned subsidiary of Fairstone Financial Inc. (Fairstone Bank of Canada); reports payments to the credit bureaus.	Oct 15, 2026
iA Auto FinanceThrough a dealer	From 8.99%	Not published	BC, AB, ON	Through a participating dealer; no direct consumer applicationRate Reducing Loan cuts the rate by 10% of the current rate every 12 months if all payments are on time and loan terms are met.	Oct 15, 2026
LendCareThrough a dealer	Not published	Not published	BC, AB, ON	At the dealer's point of sale (dealer uses LendCare's FrontLine portal)Finances vehicles with no age restriction and up to 250,000 km; wholly owned subsidiary of goeasy Ltd.	Oct 15, 2026
Prefera FinanceThrough a dealer	Up to 28.00%	Not published	BC, AB, ON	Through a participating dealer (Dealertrack / Compass Direct Portal)Mainly recreational and powersports financing; its 15-year terms apply to those loans, not cars.	Oct 15, 2026
Rifco National Auto FinanceThrough a dealer	From 12.90%	Not published	BC, AB, ON	Through a participating dealerDescribes itself as 'Full spectrum non-prime lending' for dealers across Canada.	Oct 15, 2026
Santander Consumer BankThrough a dealer	Not published	Up to 96 months	BC, AB, ON	Choose a vehicle at a dealer that uses Santander; the dealer submits the applicationRequires minimum income of $1,800/month and finances vehicles up to 10 model years old and 180,000 km.	Oct 15, 2026
Scotia Dealer AdvantageThrough a dealer	Not published	Up to 96 months	BC, AB, ON	Only through partner dealers; no direct applicationScotiabank's dealer arm for near and non-prime loans, including buyers with no credit history.	Oct 15, 2026
easyfinancialApply directly	29.99% to 35.00%Personal loan rates; no auto-specific rate published	9 to 84 months	BC, AB, ON	Online or at an easyfinancial branch (unsecured personal loan usable for a vehicle)Home page offers a 2% lower rate with a co-applicant; auto financing through dealers is handled by sister company LendCare.	Oct 15, 2026
FairstoneApply directly	29.99% to 34.99%Personal loan rates; no auto-specific rate published	6 to 60 months	BC, AB, ON	Directly, online or at a branch. Fairstone says requesting a quote does not affect your credit score; a full application is a separate step.Private-sale car loans for vehicles 10 model years old or newer, 6 to 60 months. Its page states both $50,000 and $20,000 as the maximum. Its dealer financing arm is EdenPark.	Oct 15, 2026
ClutchOnline car retailer	From 7.99%	24 to 96 months	ON	Online, when buying a Clutch vehicle; soft check to pre-qualify, lenders may then pull a hard checkSells its own inventory with a 10-day or 750 km money-back guarantee; buying is Ontario only (BC is sell or trade-in).	Oct 15, 2026
Canada DrivesLoan marketplace	Not published	Not published	BC, AB, ON	Online pre-approval, then referral to a partner dealer, which runs a credit inquiryNo longer sells cars itself since its 2023 creditor protection filing; it still buys cars from consumers.	Oct 15, 2026
CarsFastLoan marketplace	Not published	Not published	BC, AB, ON	One online application; matched with lenders and a network of about 350 dealershipsStates it assists 'all types of credit including consumer proposals'.	Oct 15, 2026
LoanConnectLoan marketplace	8.99% to 35.00%Personal loan rates; no auto-specific rate published	3 to 120 months	BC, AB, ON	Online application searching a network of Canadian lendersPersonal-loan search platform; loans of $500-$50,000 over 3-120 months.	Oct 15, 2026
Loans CanadaLoan marketplace	9.99% to 35.00%Personal loan rates; no auto-specific rate published	12 to 96 months	BC, AB, ON	Free online quote; referred to third-party lenders/partner dealershipsSays it is 'a loan search platform and comparison website, not a lender'.	Oct 15, 2026

“From” rates go to the strongest applicants; your rate depends on your credit, income, the vehicle and the term. No provider pays NotchUp for its position in this table, which is sorted by type of provider and then alphabetically. Rates are hidden once a row is more than 30 days past its check. Nothing above 35% APR, Canada’s criminal rate, is ever shown. How NotchUp makes money.

The ranges that reach the 35% legal cap are personal-loan rates, not car-loan rates. Loans Canada, for example, says its partners’ “APRs range from 9.99% to 35%” (checked Oct 15, 2026). We label those rows and keep them out of the tiles.

Rates copied from one site to another go stale. A Canadian comparison site’s bad-credit car loan page, marked updated August 4, 2026, still shows Loans Canada with a ceiling above the 35% criminal rate. That rate has been in force since January 1, 2025, and Loans Canada’s own page says 35%. That is why every panel rate links to the provider’s page and hides itself 30 days after its check.

Provider	APR as published	Term	Provinces	How to apply	Last verified
ATB FinancialBank	7.20% to 14.20%Personal loan rates; no auto-specific rate published	12 to 60 months	AB	Apply online or call 1-800-332-8383ATB is an Alberta provincial Crown corporation; personal loan can be repaid in full at any time with no penalty.	Oct 15, 2026
CIBC Personal Car LoanBank	Not published	12 to 96 months	BC, AB, ON	At a partner dealership; you don't need to be a CIBC clientFinances up to 100% of a new or used vehicle up to 10 years old.	Oct 15, 2026
RBC Royal BankBank	Not published	Not published	BC, AB, ON	Ask for RBC financing at one of 4,500+ enrolled dealerships, or apply for an RBC personal loanNewcomer program: up to 96 months and $75,000 with no credit history needed for vehicles under 10 years old.	Oct 15, 2026
ScotiabankBank	Not published	Up to 96 months	BC, AB, ON	Ask for Scotiabank financing at one of 4,000+ dealershipsFinances new vehicles or ones up to 7 years old.	Oct 15, 2026
TD Auto FinanceBank	Not published	Up to 96 months	BC, AB, ON	Ask for a TD Auto Loan at an authorized dealershipPage cites J.D. Power 2024-2026 studies: highest score in the retail non-captive non-prime segment; says those with past credit problems 'may qualify'.	Oct 15, 2026
Coast Capital Auto FinanceCredit union	Not published	24 to 84 months	BC, AB, ON	Apply online directly; private sales financedVehicles must be 10 years old or newer with no more than 185,000 km.	Oct 15, 2026
DUCA Credit UnionCredit union	Not publishedPublished rate table carries no effective date	12 to 60 months	ON	Apply directly with DUCARates page states rates are subject to change without notice; no dedicated car loan page.	Oct 15, 2026
Meridian Credit Union (DriveON)Credit union	Not published	Not published	ON	Ask for Meridian DriveON financing at a participating Ontario dealershipApplications are usually completed within 30 minutes at the dealership.	Oct 15, 2026
Servus Credit UnionCredit union	Not published	Not published	AB	Apply online or call 1.877.378.8728Vehicle loan page covers cars, motorcycles and RVs.	Oct 15, 2026

“From” rates go to the strongest applicants; your rate depends on your credit, income, the vehicle and the term. No provider pays NotchUp for its position in this table, which is sorted by type of provider and then alphabetically. Rates are hidden once a row is more than 30 days past its check. Nothing above 35% APR, Canada’s criminal rate, is ever shown. How NotchUp makes money.

Banks and credit unions rarely post a car loan rate either. Our guide to car loans for every credit score explains which channel tends to fit which credit file.

Insight 05

On a $25,000, 72-month loan, 29.99% APR costs $23,744 more than the 6.66% bank average

The same $25,000 over 72 months costs $5,395.52 to borrow at the July 2026 bank average of 6.66% APR, by our calculation. It costs $13,051.28 at 14.99% APR and $29,139.68 at 29.99% APR, inside Loans Canada’s estimates for fair and poor credit. We assume equal monthly payments and no other fees. At 29.99%, the interest is more than the amount borrowed.

$329.78The extra monthly payment on $25,000 over 72 months at 29.99% APR compared with 6.66% APR, by our calculation.

The average new auto loan was $36,979 in the second quarter of 2026 (Equifax Canada), about half again as large as these examples. At high rates, borrowing less saves more than shaving a fraction of a point.

What car loan rate should you expect for your credit score?

Loans Canada estimates (updated July 10, 2026) about 5% to 8% APR with excellent credit (760 and up) and 19% to the 35% legal maximum with poor credit (below 560). In between, good credit (660 to 759) runs 7% to 12% and fair credit (560 to 659) 12% to 19%. No bank, regulator or credit bureau publishes official rates by score.

Loans Canada calls these figures “estimates only”. Your own rate also depends on:

• your down payment
• income
• the vehicle
• the term

To price your own quote, put its APR and term into the NotchUp car loan calculator. Our guide to car loans for every credit score covers how to get approved in each tier.

Use the bank average, 6.66%, as the check on a prime offer and the floor for everything else. With strong credit, a bank quote well above it deserves a question. With fair or poor credit, judge offers against the table above and against each other.

• Check your credit score first and know its tier; our Canadian credit score ranges guide explains the bands.
• Get at least two written quotes showing the APR and the term, from different channels such as a credit union and a dealer.
• Compare the total cost of borrowing, not the monthly payment. A longer term lowers the payment and raises the cost.
• If you have filed a consumer proposal, read how car loans work during a consumer proposal before you shop.

What this tracker can’t tell you

• Your rate. Every figure here is an average or an advertised starting point.
• Rates by credit tier. Neither the Bank of Canada nor, as far as we found, Equifax Canada or TransUnion Canada publishes them; tier figures here are a loan marketplace’s estimates.
• Rates outside the banks. Credit unions, finance companies and automakers’ captive finance arms, and so dealer 0% promotions, are not in the Bank of Canada series.
• New versus used, or loan term. The bank series combines new and used vehicles and all terms.
• Today’s rate. The Bank of Canada publishes about two to two and a half months after the month it describes.
• Provinces. The Bank of Canada series is national, and we found no provincial breakdown.

Methodology

Bank of Canada data. The bank average is Valet series V122667805, the volume-weighted average rate on auto loans advanced by chartered banks in the month; “funds advanced” includes new loans, new draws, renewals and refinancing. The outstanding rate is V122667811, on month-end balances. The Bank’s notes exclude credit unions and subsidiaries of non-bank financial institutions. Collection began in July 2016 (Statistics Canada table 10-10-0006-01 carries the same data). We downloaded the full history, to July 2026, on October 15, 2026.

Policy rate and prime. The policy rate is V39079 (daily) and prime is V80691311 (weekly); for each month we use the last value. Spreads are the auto rate minus the month-end policy rate or prime. The daily series confirms the path: 0.25% until the first hike in March 2022, 5.00% from July 2023 to the first cut in June 2024, and 2.25% since late October 2025.

Key inputs. 12-month change: 6.66% (July 2026) minus 6.82% (July 2025) = -0.16 points. Peak 8.33% (November 2023); trough 3.71% (August 2016). Hikes: auto 5.11% to 8.33% = +3.22; policy 0.25% to 5.00% = +4.75; 3.22 / 4.75 = 68%. Cuts: auto 7.77% (May 2024) to 6.66% = -1.11; policy 5.00% to 2.25% = -2.75; 1.11 / 2.75 = 40%. From the auto peak: -1.67 against -2.75 for policy (61%). Spread over policy: 4.86 (February 2022), 2.77 (May 2024), 4.41 (July 2026); average 3.34 from July 2016 to February 2020. Spread over prime: 2.66, 0.57, 2.21. New minus outstanding: +2.63 (January 2023), -0.50 (December 2025), -0.17 (July 2026); negative for 13 consecutive months to July 2026, against a previous longest run of 8 months (June 2020 to January 2021). All are our calculations from Bank of Canada data.

How to reproduce these figures. Download the four series as JSON from the Valet links in Sources (no key is needed) and use the values as published, to two decimals. For the daily policy rate and the weekly prime rate, take the last observation dated in each month. An annual figure is the simple mean of that year’s monthly values; 2016 has only July to December (average 3.88%) and is left out of the chart. Pass-through is the change in the auto rate divided by the change in the policy rate over the same months. A run of “new below outstanding” counts consecutive months in which V122667805 minus V122667811 is below zero; a zero gap ends a run.

Payment examples. Every payment uses standard amortization: payment = P × r / (1 – (1 + r)^-n), where P is the amount financed, r is the APR divided by 12 and n is the term in months. The payment is rounded to the cent, total repaid is that payment times n, and cost of borrowing is total repaid minus P, with no fees outside the APR. The credit-tier table applies the same formula at both ends of each Loans Canada range on $25,000 over 72 months.

The lender panel. Each row comes from the provider’s own page, never an aggregator, with its verified date and source link. A row expires 30 days after its check, or sooner if a promotion ends, and then hides its rate until re-checked. Any APR above 35% is removed, and personal-loan ranges are labelled and kept out of the tiles. The tiles cover non-bank rows (dealer-channel lenders, direct lenders, retailers and marketplaces). The median starting APR uses only dealer-channel and direct lenders that publish an auto-specific floor, so a retailer’s or marketplace’s headline partner rate is not counted as a lender’s floor. “No auto-specific rate” counts rows that publish no rate or only a personal-loan range. Rows are ordered by type of provider, then alphabetically, and NotchUp is not paid by any provider listed today (how referrals work).

Update schedule. Bank of Canada figures refresh daily from Valet. When the Bank publishes a new month, usually in the third week, we rewrite the analysis and log the change. Lender rows are re-verified at least every 30 days.

Change log

• October 15, 2026 (revision): Added rates by credit score with cost per tier, fuller reproduction notes, and a corrected citation URL. The panel now lists 23 providers.
• October 15, 2026: Tracker launched with Bank of Canada data to July 2026 and a panel of 20 providers.

Frequently asked questions

What is the average car loan interest rate in Canada?

The average car loan interest rate at Canadian chartered banks was 6.66% (July 2026, Bank of Canada), on new and renewed auto loans. It covers banks only, across all credit tiers, so borrowers with fair or poor credit usually pay more. Loans Canada estimates 12% to 19% APR for fair credit (estimates, July 10, 2026). Credit unions and finance companies are not in the average.

What car loan rate can I get with bad credit?

With a score below 560, Loans Canada estimates from around 19% up to the 35% legal maximum. For scores of 560 to 659 it estimates about 12% to 19% (updated July 10, 2026; “estimates only”). No official source publishes rates by score. Published non-prime starting rates include iA Auto Finance’s 8.99% and Rifco’s 12.9% (checked Oct 15, 2026). Our bad credit car loans guide covers approval.

Are car loan rates going down in Canada?

Slowly: the bank average was 6.66% in July 2026, 0.16 points below July 2025 and 1.67 points below the November 2023 peak of 8.33% (Bank of Canada). With the policy rate at 2.25% since late October 2025, the bank auto rate has moved sideways between 6.37% and 6.72%.

What is the highest legal interest rate on a car loan in Canada?

The highest legal rate is 35% APR, the criminal rate set by section 347 of the Criminal Code since January 1, 2025. A rate table showing more than 35% is out of date. One Canadian comparison page updated August 4, 2026 still listed a ceiling above it, while the provider’s own page said 35%.

Why is the Bank of Canada average lower than the rate a dealer quoted me?

The Bank of Canada average covers only chartered banks, weighted by loan volume, so prime borrowers pull it down. The finance companies that do much non-prime dealer lending are left out. A dealer quote also reflects your credit tier, the car and the term. Ask for the lender’s name and the APR in writing, then compare it with the credit-tier table above.

How often is this car loan rate tracker updated?

The Bank of Canada figures refresh daily. We rewrite the analysis each month when the Bank publishes new data, about two to two and a half months after the month it describes. Lender rows are re-checked at least every 30 days.

Sources

1. Bank of Canada, Valet series V122667805: average rate on auto loans advanced, chartered banks (retrieved October 15, 2026)
2. Bank of Canada, Valet series V122667811: average rate on outstanding auto loan balances (retrieved October 15, 2026)
3. Bank of Canada, Valet series V39079: target for the overnight rate (retrieved October 15, 2026)
4. Bank of Canada, Valet series V80691311: prime rate (retrieved October 15, 2026)
5. Bank of Canada, Valet group A4_RATES_CONSUMER: interest rates charged for new and existing lending by chartered banks, consumer credit
6. Bank of Canada, Interest rates charged for new and existing lending by chartered banks, notes
7. Statistics Canada, Table 10-10-0006-01, Funds advanced, outstanding balances, and interest rates for new and existing lending, Bank of Canada
8. Equifax Canada, Market Pulse Quarterly Consumer Credit Trends, Q2 2026 (August 24, 2026)
9. iA Auto Finance, About (checked October 15, 2026)
10. Rifco National Auto Finance, home page (checked October 15, 2026)
11. Prefera Finance, Dealers (checked October 15, 2026)
12. Loans Canada, Car loans (checked October 15, 2026)
13. Loans Canada, What is the average car loan interest rate in Canada? (updated July 10, 2026)
14. Justice Laws Website, Criminal Code, section 347, criminal interest rate