The Best Banks and Lenders for Auto Loans in Canada
Whether you're buying new or used, applying with stellar credit or starting from scratch, finding the right auto loan is just as important as finding the right car. But with so many options—big banks, local lenders, online platforms—where should you start?
This guide breaks down the top banks and lenders offering auto loans in Canada, including options for used vehicle financing, online applications, and even bad or no credit borrowers. If you're looking to calculate car payments before you commit, you're in the right place.
1. Scotiabank – Great for Flexible Terms
Scotiabank is one of the biggest lenders in Canada and offers auto loans through both dealerships and direct lending.
Why it's a top pick:
Offers terms up to 96 months
Loans available for both new and used cars
Pre-approval available
Competitive rates for borrowers with good credit
This is a strong choice if you want a trusted lender and the flexibility to finance a vehicle on your terms.
2. RBC Royal Bank – Best for Digital Tools
RBC offers an online-first experience, making it super easy to calculate payments, apply, and manage your loan all from your phone or laptop.
What stands out:
Online pre-approvals
In-depth car loan calculators to help you budget
Terms up to 96 months
Can be bundled with other RBC banking services
If you're comfortable with online tools and want a streamlined experience, RBC delivers.
3. BMO – Great for Existing Customers
If you already bank with BMO, applying for a car loan here may help you access exclusive customer perks or rate discounts.
What to expect:
Loans available for new and used vehicles
No penalties for early repayment
Online application available
Flexible repayment terms
BMO is ideal if you want everything under one roof—banking and car financing.
4. TD Auto Finance – Best for Dealer Financing
TD is one of the largest players when it comes to dealer-arranged financing across Canada. Rather than applying directly, you go through the dealership.
Why people like it:
Lightning-fast approvals (often on the spot)
Strong nationwide dealer partnerships
Options for used and new vehicles
Access to TD support and service after purchase
It’s a go-to if you’re financing at a dealership and want a reliable name behind the loan.
5. Carfinco – Designed for Bad or No Credit
If you're working on rebuilding your credit—or have no history at all—Carfinco offers non-prime auto financing across Canada.
Highlights:
Specializes in used vehicle financing
Works with borrowers who have poor or limited credit
Accessible through many dealerships
Term lengths up to 84 months
Carfinco helps people get back on the road even if traditional lenders won’t approve them.
6. LendCare – Best for Online & No Credit Borrowers
LendCare offers an easy-to-use digital loan process that’s perfect for buyers who want to apply for a car loan online.
Why it's a strong option:
Pre-approvals available online
Accepts no credit or limited credit histories
Works with a broad dealership network
Transparent loan structure
If you’re new to borrowing or just want a quick online experience, LendCare is worth checking out.
7. AutoPlug – Best for Comparing Lenders in One Place
AutoPlug isn’t a bank—it’s a platform that simplifies the entire auto loan process by connecting you with multiple lenders at once.
What makes AutoPlug different:
Submit one application and compare real offers
Accepts all credit types—from perfect to none at all
Great for used vehicle financing
Tools to calculate car payments based on your budget
Lets you apply online and track everything in one spot
This is the most flexible and accessible option for Canadians who want to avoid back-and-forth with individual lenders.
How to Choose the Right Lender
When choosing a lender, consider the following:
Credit Score: If yours is under 600, you’ll want lenders like Carfinco, LendCare, or AutoPlug that work with bad or no credit.
Loan Term: Some banks like Scotiabank and BMO offer up to 96-month terms—great for smaller monthly payments.
Online Experience: Want to skip in-person visits? Go with RBC, LendCare, or AutoPlug.
Used Car Financing: TD, Carfinco, and AutoPlug are top choices for financing pre-owned vehicles.
Final Thoughts
There’s no one-size-fits-all when it comes to auto loans in Canada. Big banks like Scotiabank, RBC, and BMO offer strong rates and trusted service, while lenders like Carfinco and LendCare open the door for buyers with bad credit or no credit history. And platforms like AutoPlug bring everything together—letting you compare multiple lenders, calculate your payments, and apply without pressure.
The best loan is the one that fits your budget, lifestyle, and credit profile. So take a few minutes to explore your options, run the numbers, and drive away with confidence.
