Auto Loan Calculator

An auto loan is a secured loan where the vehicle itself serves as collateral. If you fail to repay the loan, the lender can repossess the vehicle. This security typically allows for lower interest rates compared to unsecured personal loans.

The amount you finance depends on the vehicle price, your down payment, trade-in value of your current vehicle, and applicable taxes and fees. The larger your down payment, the less you need to finance and the less you'll pay in total interest.

The interest rate represents the cost of borrowing money, expressed as an annual percentage. Even a small rate difference can mean thousands of dollars over the life of the loan. For example, on a $30,000 loan over 60 months, the difference between 5% and 7% is approximately $2,000 in interest.

Your rate depends on several factors: your credit score, loan term, vehicle type (new vs. used), and market conditions. Improving your credit score before buying can save you significantly.

The loan term directly affects your monthly payments and total cost. A longer term means lower payments but more total interest paid. A shorter term means higher payments but less interest overall.

Avoid loans longer than 60-72 months: vehicles depreciate quickly, and a long loan can leave you "upside down" (owing more than the vehicle is worth). Aim to pay off the vehicle before it loses too much value.

If you own a vehicle, its trade-in value can serve as a down payment for your new purchase. The dealer offers you an amount for your old vehicle, which is deducted from the price of the new one.

Note: The trade-in value offered by a dealer is often less than what you could get by selling the vehicle privately. Always compare options before deciding. Use sites like Kelley Blue Book or Edmunds to estimate true market value.

The sticker price isn't the final price. You need to add sales tax (which varies by state), documentation fees, transportation and preparation fees, and sometimes registration fees.

In some states, sales tax is calculated on the net amount after trade-in deduction. In others, tax is on the full price. This difference can represent hundreds of dollars. Always confirm how your state handles this.

The Loan-to-Value (LTV) ratio represents the percentage of the vehicle price you're financing. An LTV of 80% means you're financing 80% of the price and putting 20% down.

A lower LTV is preferable: it reduces the risk of being upside down on your loan and may help you secure better rates. Lenders generally prefer an LTV below 100%.

You can finance your vehicle directly through the dealership or get pre-approved from a bank or credit union. Each option has advantages.

Dealer financing is convenient and sometimes offers promotional low rates on new vehicles. Bank financing gives you more negotiating power and often better rates on used vehicles. Always get multiple quotes to compare.

Don't focus only on the monthly payment: salespeople can extend the term to lower the payment, but this costs you more overall. Always look at the total loan cost.

Avoid adding unnecessary products to your financing (extended warranty, life/disability insurance, surface protection). These products are often overpriced and significantly increase your loan cost. If you want them, negotiate separately.

In Quebec, a vehicle bought from a dealer is subject to the 5% GST and the 9.975% QST, 14.975% in total. On a $35,000 car that is $5,241.25 in taxes, an amount most buyers end up financing along with the vehicle. The “Apply GST + QST” button in the Quebec section above enters this rate for you.

Trading in a used vehicle makes a big difference. When an individual trades a vehicle in to a registered dealer, Revenu Québec states that the trade-in credit reduces the amount on which GST and QST are calculated. With a $10,000 trade-in on the same $35,000 car, taxes drop to $3,743.75, a saving of $1,497.50. That is why the calculator then uses the “tax on net amount” option. Selling your old vehicle privately does not give you this benefit. For a used vehicle, QST is calculated on the greater of the price and the estimated value, and it is paid to the SAAQ at registration.

Quebec’s Roulez vert program has been phased down. For a vehicle registered in 2026, the rebate is $2,000 for a new battery-electric vehicle, $1,000 for a new plug-in hybrid with a battery of 15 kWh or more, $500 for a battery of 8 to under 15 kWh, and $1,000 for an eligible used battery-electric vehicle. The manufacturer’s suggested retail price must be under $65,000. Only the registration date counts, the program ends on December 31, 2026, and no amount is planned for 2027.

The federal government launched the Electric Vehicle Affordability Program (EVAP) for transactions on or after February 16, 2026: up to $5,000 for a new battery-electric or hydrogen vehicle and $2,500 for a plug-in hybrid. The final transaction value must be $50,000 or less (no cap for vehicles built in Canada), and the vehicle must be made in Canada or in a country that has a free-trade agreement with Canada. Funding is limited and first come, first served.

The two rebates stack and are deducted after taxes: GST and QST are calculated on the full price, then the dealer subtracts the incentive. Enter the total in the “Government rebates” field: the amount financed goes down, but the taxes do not. Example: on a new $40,000 electric vehicle, taxes are $5,990 and the amount to finance drops from $45,990 to $38,990 if both rebates ($7,000) apply.