Bad credit car loans in Canada usually cost 12.9% to 29.99% APR, Finder Canada’s range for subprime auto loans (updated September 17, 2026). The chartered-bank average, which blends every credit tier, is 6.66% (July 2026, Bank of Canada). No lender may legally charge more than 35% APR, fees included (Criminal Code, s. 347).
A bad credit car loan is a car loan priced for a borrower below a lender’s prime tier. In BC, Alberta and Ontario you can usually get one through a dealership that sends your file to a non-prime lender.
The short answer
- 6.66%
The average chartered-bank rate on auto loans advanced in July 2026, all credit tiers combined (Bank of Canada).
- 12.9%
The low end of Finder Canada’s 12.9% to 29.99% range for subprime auto loans, meaning scores below 660 (page updated September 17, 2026).
- 18 of 23
Car loan providers in NotchUp’s panel that publish no car loan rate at all, as of October 15, 2026.
- 35%
The legal APR ceiling on any car loan in Canada since January 1, 2025, with fees counted as interest (Criminal Code, s. 347).
| 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.
| 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.
On this page 8 sections
How many car lenders publish their rates?
Very few do: of the 23 car loan providers in NotchUp’s panel, 18 publish no car loan rate (checked by hand on each provider’s site, October 15, 2026). Of those, 13 publish no rate of any kind and 5 publish only personal loan rates.
Seven providers advertise terms up to 96 months, and five of those publish no rate.
Our analysis of the panel: only iA Auto Finance, Rifco, Clutch and DUCA Credit Union publish a car loan rate. iA and Rifco give only a floor (“as low as”). Clutch’s calculator has no tier below a 601 score, and DUCA’s rate table shows no effective date.
Four of the seven dealer-channel lenders publish no rate: EdenPark, LendCare, Santander Consumer and Scotia Dealer Advantage.
What car loan rate can you expect with bad credit?
With a score below 660, published figures start around 9.9%. Loans Canada’s estimate for scores below 560 runs from about 19% up to the 35% legal maximum. We checked both sources on October 15, 2026, and they disagree on the fair tier by several points.
| Credit tier (score) | Finder Canada example rate | Loans Canada estimate |
|---|---|---|
| Excellent (760 and up) | 5.39% | About 5% to 8% |
| Very good (725 to 759) | 5.99% | About 7% to 12% (660 to 759) |
| Good (660 to 724) | 6.20% | |
| Fair (560 to 659) | 9.90% | About 12% to 19% |
| Poor (below 560) | 14.99% | From about 19% to the 35% legal maximum |
Loans Canada calls its bands estimates only (updated July 10, 2026). Our car loan rate tracker follows the bank average month by month.
Where do you get a bad credit car loan?
Most bad credit borrowers are financed at the dealership, which sends files to non-prime lenders. In NotchUp’s panel, 7 of 23 providers take applications only through dealers (October 15, 2026).
- Dealer-arranged non-prime lenders. These finance companies and bank arms lend below prime, mostly through dealers. Santander Consumer said dealer reserve “is also a possibility” to reward dealerships (Canadian Auto Dealer, September 15, 2021).
- Direct lenders. Banks, credit unions and some finance companies let you apply yourself and arrive with a number to beat.
- Online retailers and marketplaces. Clutch sells its own cars, but buying is Ontario only among these provinces (Clutch FAQ, checked October 15, 2026). Canada Drives stopped selling cars in 2023 (Automotive News) and now matches you with a local dealership.
CarsFast’s privacy policy allows sharing your application with “purchasers of personal information.” Our Canada Drives vs CarsFast vs Clutch comparison covers each.
How do you get approved with bad credit?
Ask for less and prove more: a cheaper car, a bigger down payment and clean documents. FCAC (October 14, 2025) also warns against signing contracts with more than one dealership at once.
Check both credit reports
Pull your report from both bureaus and dispute any errors before you apply.
Save a down payment
Every dollar down is a dollar the lender doesn’t have at risk.
Gather your documents
Have the RBC checklist below ready before you apply.
Apply with one or two lenders
Get one direct quote before the dealership, rather than applying with ten lenders.
Choose the shortest affordable term
Pick the shortest term whose payment you can afford.
Ask about on-time rewards
iA says borrowers who meet the loan terms may get a cut of 10% of their current rate every 12 months.
See the bad credit down payment guide, the self-employed car loan guide and car loans during a consumer proposal. RBC lists these documents for a car loan (December 6, 2023):
- A valid driver’s licence from your province.
- Proof of address, such as a recent utility bill, bank statement or lease.
- Proof of income: recent pay stubs or bank statements.
- Your trade-in’s ownership and any payout statement.
- The down payment, as a cheque, bank draft or account balance.
How much does a longer term cost?
Stretching a $20,000 loan at 17.99% APR from 60 to 84 months saves about $88 a month but adds about $4,835 of interest (our calculation, October 15, 2026). That rate sits inside Finder’s 12.9% to 29.99% subprime range and Loans Canada’s 12% to 19% fair-credit estimate.
Representative example: 60 months
- Amount financed
- $20,000
- APR
- 17.99%
- Term
- 60 months
- Monthly payment
- $507.76
- Cost of borrowing
- $10,465.60
- Total repaid
- $30,465.60
Assumes equal monthly payments, no fees outside the APR and no early repayment. Illustration only, not an offer.
Representative example: 84 months
- Amount financed
- $20,000
- APR
- 17.99%
- Term
- 84 months
- Monthly payment
- $420.24
- Cost of borrowing
- $15,300.16
- Total repaid
- $35,300.16
Assumes equal monthly payments, no fees outside the APR and no early repayment. Illustration only, not an offer.
What are the red flags in a bad credit car loan?
The biggest red flags are add-ons rolled into the loan, terms of 84 to 96 months and any approval promise made before a lender has seen your file. Canadian car loans usually run 12 to 72 months (NerdWallet Canada, February 4, 2025).
- Financed add-ons. Warranties, rust protection and credit insurance collect interest for years. Optional credit insurance is excluded from the APR.
- 84 to 96 month terms. In FCAC’s example, a $35,000 loan at 4% over 8 years on a $31,300 car leaves $7,725 of negative equity after one year.
- Approval promises and upfront fees. “Guaranteed approval” ads are a warning sign. In most provinces it is illegal to ask for a fee before you receive the loan (Canadian Anti-Fraud Centre, January 16, 2026).
- Signing in a hurry. No cooling-off period applies to a signed car purchase or loan in any of the three provinces, according to their dealer regulators. In BC, a lease gets one clear day.
What is different in Ontario, Alberta and BC?
Alberta requires a high-cost credit licence at 32% APR or more, BC licenses credit above 32%, and Ontario has no such licence (checked October 15, 2026). The 35% federal cap applies in all three.
- Ontario. The Ontario Motor Vehicle Industry Council (OMVIC) requires all-in advertised prices that “include all fees and charges the dealer intends to collect”, except HST and licensing. See the Ontario car loan guide.
- Alberta. Dealers are licensed by the Alberta Motor Vehicle Industry Council (AMVIC), and the 32% licence covers them too. A dealer must give you a mechanical fitness assessment before you sign (AR 211/2006). See the Alberta car loan guide.
- British Columbia. The Vehicle Sales Authority of BC (VSA) told dealers on March 9, 2026 that finance placement fees “must be included” in the APR. Hiding them in the price is a deceptive practice. See the BC car loan guide.
Frequently asked questions
Can I get a car loan with bad credit in Ontario, Alberta or BC?
Yes. Non-prime lenders finance cars for people with bad credit in all three provinces, and most of those loans are arranged through a dealer. Expect a higher rate: Finder Canada puts subprime auto loans at 12.9% to 29.99% (September 17, 2026), against a bank average of 6.66% (July 2026, Bank of Canada).
What credit score do I need for a car loan in Canada?
No law sets a minimum score, but price rises fast below 660, which Finder Canada treats as subprime. Finder’s example rate is 9.90% for scores of 560 to 659 and 14.99% below 560. Clutch’s own calculator shows no tier below 601 (both checked October 15, 2026).
How long should a bad credit car loan be?
Keep it as short as your budget allows, and treat anything over 72 months with suspicion. In FCAC’s example, $25,000 at 5% costs $1,974 in interest over 36 months and $4,681 over 84 months, $2,707 more for the same car.
Can I get a car loan with no credit history?
Yes, some lenders do. RBC’s newcomer program offers up to 96 months and $75,000 with no credit history needed, for vehicles under 10 years old. Scotia Dealer Advantage lends to near-prime and non-prime buyers, including those with no history (both checked October 15, 2026).