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. For poor credit it estimates 19% up to the 35% legal maximum (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 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%.

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, loans still being repaid, is covered 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 for the second quarter of 2026 (August 24, 2026). 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 to the November 2023 peak, the auto rate rose 3.22 points while the policy rate rose 4.75, a 68% pass-through.

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 over the policy rate, in the table below, was back to 4.41 points in July 2026. That is above its 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. Since the policy rate reached 2.25% in late October 2025, the bank auto rate has stayed between 6.37% and 6.72% (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. 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.

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. If your credit has improved since, compare one refinance quote with your current APR and remaining term. Your free credit report from Equifax and TransUnion shows what a new lender will see.

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 none 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 covers chartered banks and foreign bank branches only (Bank of Canada notes). It leaves out credit unions and the finance companies weaker-credit borrowers use.

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). Santander Consumer, EdenPark and LendCare publish no rate, so you see theirs only through a dealer.

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. Loans Canada 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.

Copied rates 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. So 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.

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.

• Excellent credit, 5% APR$3,989
• Good credit, 7% APR$5,689
• Fair credit, 12% APR$10,190
• Poor credit, 19% APR$17,078

Equal monthly payments, no fees outside the APR. The table shows both ends of each range.

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. 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.

Your own rate also depends on your down payment, income, the vehicle and the term. Use the bank average, 6.66%, as the check on a prime offer and the floor for everything else. At high rates, borrowing less saves more than shaving a fraction of a point.

1. 1

   Find your credit score tier

   Your score band sets which row of the table above applies.

2. 2

   Get two written quotes

   Ask a credit union and a dealer each for the APR and the term.

3. 3

   Compare the total cost of borrowing

   A longer term lowers the payment and raises the cost.

4. 4

   Run each quote through a calculator

   Enter the amount, APR and term to see the total repaid.

Our Canadian credit score ranges guide explains the bands, and our guide to car loans for every credit score covers approval in each tier. 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. As far as we found, neither the Bank of Canada nor Equifax Canada or TransUnion Canada publishes them.
• Rates outside the banks. Credit unions, finance companies and captive finance arms, and so dealer 0% promotions, are not in the series.
• New versus used, term, province or today’s rate. The series is national, combines all vehicles and terms, and lags about two to two and a half months.

Methodology

The bank average is Bank of Canada Valet series V122667805, the volume-weighted rate on auto loans advanced by chartered banks, renewals included. The outstanding rate is V122667811. For the policy rate (V39079) and prime (V80691311) we use each month’s last value. We downloaded the history, July 2016 to July 2026, on October 15, 2026; figures refresh daily. Annual figures are simple monthly means, and pass-through is the auto rate’s change divided by the policy rate’s. Payments use standard amortization with no fees outside the APR. Each panel row comes from the provider’s own page, expires 30 days after its check and never shows an APR above 35%. No provider listed today pays NotchUp (how referrals work).

Change log

• October 16, 2026: Condensed the analysis, added charts of Equifax Q2 2026 figures and tier costs, and replaced the sources list with inline source links.
• 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”). 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.