Home » Loans
Our Disclosure

The content on this website includes links to our partners and we may receive compensation when you sign up, at no cost to you. This may impact which products or services we write about and where and how they appear on the site. It does not affect the objectivity of our evaluations or reviews. Read our disclosure.

The Best Car Loans in British Columbia in 2024

Updated:

Fact Checked

For many in British Columbia, a car loan is a means to purchase a car without making a large, upfront payment.

If you are searching for car loans in Canada, there are many options you can find regardless of your credit score.

Through this article, you will know where to find the best car loan rates in BC, how to apply, and how to choose the best car loan for you.

Key Takeaways

  • The online lenders that offer some of the best car loan rates in BC are CarsFast, Loans Canada, Clutch, LoanConnect, Canada Auto Finance, Canada Drives, and Auto Credit Deals.
  • The current average interest rate on a car loan in Canada is 8.03%.
  • Borrowers with low credit scores can use online car retailers to apply for quick and easy car financing applications with fast funding time.

Best Car Loan Rates in BC

Enumerated below are the top online lenders where you can apply for car financing from the comfort of your home and shop for the best car loan rates in BC.

1. CarsFast

Cars Fast

Cars Fast is a popular destination for getting a car loan regardless of your credit score. The platform has partnerships with top loan providers, including TD, Scotiabank, RBC, HSBC, and others.

Interest rate: Varies.

Loan term: 12-96 months.

Maximum loan amount: $75,000.

Eligibility: Earn at least $20,000/yr, reside in ON, BC, or AB; and be employed for 3 months+.

Carsfast is an online car loan shopping platform featuring a network of dealers across Canada who will help you find the auto financing you need regardless of your credit history.

With Carsfast, you can qualify for a loan with a lower interest rate and compare multiple lenders anywhere in Canada.

Applying for an online car loan at Carsfast takes only two minutes.

  1. Fill out a short form and provide the required information.
  2. Within minutes, get pre-approval or approval.
  3. Wait to get the best rates to compare.
  4. Choose your vehicle from 350 dealerships across the country.

The requirements to apply for car financing include the following:

  • An annual employment income of at least $20,000
  • Employed for at least three months
  • A valid driver’s licence
  • A Canadian citizen over 20 years of age
  • A resident of Alberta, British Columbia, or Ontario

You can borrow up to $75,000 to purchase a car, with terms of 12 to 96 months and interest rates that vary, depending on your credit profile.

Carsfast partners include Toronto-Dominion Bank (TD), Bank of Nova Scotia (Scotiabank), Royal Bank of Canada (RBC), and HSBC, to mention a few.

2. Loans Canada

Loans Canada

Loans Canada is a loan comparison platform for all kinds of personal loans, car loans, debt consolidation loans, and bad credit loans. It has partnerships with some of Canada’s largest lenders and offers free access to your Equifax credit score.

Interest rate: 2.99% to 46.96%.

Loan term: 4-60 months.

Maximum loan amount: Up to $50,000.

Loans Canada is a loan comparison website that connects online lenders with borrowers. It features all types of loans for people with different financial circumstances and credit scores.

The platform provides tools to get multiple quotes from various lenders with just a single application.

The loan application process is fast and can take only five minutes to complete.

  1. Complete the online application form by providing basic personal information and required documentation.
  2. Get various offers from multiple lenders, their loan amounts, term lengths, and interest rates.
  3. Wait for an approval notification from Loans Canada via phone or email.
  4. Once the lender approves your loan, it will issue you a cheque or deposit the funds into your account. You can get access to the cash within 48 hours.

The maximum loan amount is $50,000, while the loan term is three to six months, and the interest rates vary but may range from 1.99% to 46.96%.

To apply for an auto loan, you must be a Canadian resident, have proof of income, and have been employed for at least three months.

Loans Canada has partnered with many online lenders, so it can offer numerous options to people who are unable to get a loan from traditional financial institutions.

3. LoanConnect

LoanConnect is a search engine for unsecured loans with a lender network that offers loans with various terms and interest rates that accommodate borrowers, regardless of their credit scores.

The site matches lenders with borrowers who need vehicle financing for various purposes, including car purchases.

To apply for auto financing through LoanConnect:

  1. Complete the online application at the LoanConnect website.
  2. Select the loan you want and provide the necessary information.
  3. Submit the application to the website of your preferred lender.
  4. If the lender approves your request, it will deposit the money in your account in as little as 12 hours.

The maximum loan amount at LoanConnect is $50,000, with loan terms of 3 to 120 months. Payment terms vary by lender, but the loan terms are usually 12 and 60 months.

LoanConnect’s lenders offer interest rates from 6.99% to 46.96% APR, depending on needs, credit history, and personal information.

The requirements to apply for a car loan via LoanConnect are as follows:

  • Age of majority in your province of residence
  • A Canadian citizen or a permanent resident
  • A valid bank account
  • A government-issued ID
  • Proof of income
  • Bank statements or tax forms, as required

Some LoanConnect partner lenders may charge an origination fee of $100.

Related: LoanConnect review.

4. Clutch

Clutch is an online platform that lets you shop for hundreds of used cars without stepping out of your home, get car financing for your vehicle purchase, and have the retailer deliver the car to your home.

To buy your next car at Clutch using vehicle financing:

  1. Create an account at Clutch.
  2. Get pre-qualified by providing the information requested by the site.
  3. Choose your vehicle from the hundreds of used cars in the Clutch inventory.
  4. Complete the credit application process, which takes about ten minutes.
  5. Wait for the validation process to complete. Your application will be forwarded to potential lenders for approval and to determine the interest rate you are eligible for.
  6. During the checkout process, select Financing for the payment method.

Loans are open-ended, which means you can pay off your loan at any time without penalties. The minimum loan amount to apply for car financing is $7,500 after taxes.

Interest rates start at 8.49% but vary depending on personal and financial circumstances.

Applicants for auto financing with good credit scores and high income can often qualify for prime rates ranging from 4.99% to 7.99%.

If your financing request is approved, you will get access to your funds and payment plan within days.

To apply for car financing at Clutch, you need to:

  • Be a Canadian residency with a valid Canadian address
  • Have a minimum credit score of 580
  • Be employed for more than three months
  • Have a valid driver’s licence
  • Have a valid Canadian bank account

Clutch has partnered with lenders like Scotiabank, Desjardins, BMO, and TD to provide numerous financing options.

Check out our full review of Clutch.

5. Canada Auto Finance

Canada Auto Finance is a free car loan matching service specializing in bad or no credit lending and connects car loan applicants with dealers and lenders in the area.

Borrowers can apply for car financing, regardless of their credit scores, including those with scores under 600, provided they meet the income limit.

To apply for car financing via Canada Auto Finance:

  1. Complete the online application on the website and provide the needed information.
  2. Submit the loan request for prequalification.
  3. Wait for a representative to contact you to help you create an auto loan for your specific needs.
  4. When a lender approves your request, choose a vehicle based on the car financing you are eligible for. Funding time is at least 24 hours.

The loan amounts range from $5,000 to $45,000. APRs vary based on your credit score and the age and mileage of the car you choose.

The interest rate can range from 4.90% to 29.95%, depending on your credit score, loan amount, down payment, and other factors.

To avail of car financing, you must be a Canadian resident, at least 18 years old, with a gross monthly income of $1,500 (for credit scores less than 625), and a bank account with direct deposit.

6. Canada Drives

Canada Drives is an online car shopping website with a large network of trusted lenders. Many of them offer $0 down payment options.

The online vehicle retailer offers services to British Columbia and Ontario residents looking to buy or finance pre-owned cars.

The maximum loan amount is $75,000, with terms of up to 92 months. Interest rates vary. Repayment can be through pre-authorized debits.

To buy a car through car financing using the Canada Drives platform:

  1. Browse through the inventory at Canada Drives and pick the vehicle you want.
  2. Fill out the online financing application and enter the necessary details.
  3. Canada Drives will find a dealer that will meet your needs.
  4. When your financing request is approved, the car can be delivered to your home on the same day.

To qualify, you must be at least 18 or 19 years old, have a valid Canadian residential address, a valid driver’s licence, proof of employment showing at least $1,500 income per month, and a Canadian bank account.

Learn more about Canada Drives.

7. Auto Credit Deals

Auto Credit Deals is an online platform that connects local dealers with car buyers looking for vehicle financing, including those with bad credit.

The service, which accepts any credit, lets you get approval for financing first before proceeding with the car shopping process, allowing you to save time.

Car loan amounts are up to $50,000, with flexible repayment terms of 12 to 96 months. Interest rates are adjustable. Payment schedules can be monthly or bi-weekly.

Get a rough estimate and determine your finance options using a car loan calculator.

Applying for a car loan requires only three minutes to complete.

  1. Complete the online application, which will ask for information to determine your budget and what you can get approval for.
  2. After submitting the form, Auto Credit Deals will find the best approval option for you and provide a list of vehicles that fit your needs.
  3. Choose from the variety of vehicles that you already qualify for.
  4. Select the vehicle you want, and it will be delivered to your home.

To apply for car financing, you must be a Canadian resident with proof of address, are the age of majority in your province or territory, have a valid driver’s licence, earn a minimum monthly income of $1,800, and have a bank account. 

How Car Loans Work

A car loan, or an auto loan, is a type of loan that an individual or a business applies for to purchase a new or used car and repays it through monthly installments.

It is a personal loan secured by the car you are buying. Car loans are available at financial institutions like credit unions, auto dealerships, online lenders, and banks, such as a CIBC car loan.

When you apply for a car loan, the lender will look at your income, credit score, and debts to determine if they can approve your loan request.

If you pass the pre-approval phase, the lender will inform you how much they can loan you and your interest rate.

Car loan interest rates in Canada range from 4% to 10% or higher, with the average for new loans at around 7-8%.

Different factors influence the interest rate for your car loan. These include your credit score, income, the length of your loan, the type of your car, and your down payment.

To determine how much your auto financing will cost in British Columbia, use a car loan calculator for BC.

There are two ways you can obtain an auto loan. The first is through a dealer, and the second is through a line of credit from a financial institution.

Types of Car Loans

Car loans are personal loans, but they are available in different types and serve various purposes.

  • Secured car loans. This car loan type uses your vehicle as collateral for the loan and gives the lender security over the asset. If you cannot repay the loan, the bank will take possession of the car and sell it to recoup their money.
  • Unsecured car loans. With this type of car loan, you borrow a specific amount to purchase a vehicle without putting it up as collateral. An unsecured car loan has a higher interest rate and stricter eligibility criteria than a secured car loan.
  • Bad credit car loans. This auto loan is for borrowers with low credit scores and provided by lenders willing to work out their financial circumstances, provided they can meet set requirements. A bad credit score in Canada is a score of 574 or lower.
  • Fixed-rate and variable-rate car loans. Fixed-rate auto loans have interest rates that do not change over the life of the loan, while variable-rate car loans have interest rates that adjust based on the prime rate and carry the risk of increased monthly payments when interest rates rise.

How to Apply For a Car Loan in BC

Applying for a car loan in BC is simple. It is getting approval for it that can present challenges. So, being prepared for this endeavour is essential.

Here are the simple steps to applying for an auto loan:

  1. Fill out the car loan application from your preferred lender. Provide all the required personal and financial information and prepare the necessary documents.
  2. Submit the required documents to the lender.
  3. Wait for approval from the lender. Depending on the type of lender, this can take days to a couple of weeks.

To apply for vehicle financing via an online car retailer:

  1. Fill out an online application for car financing. Provide the needed information and details.
  2. Determine your monthly payment, receive a set interest rate, and the number of months to pay off your loan.
  3. Wait for a representative to contact you, discuss your application, and give you approval.
  4. Review the electronic copy of your financing contract and sign it electronically.
  5. Once you complete the process, the retailer will deliver your car to your home.

Here is a checklist of items to gather and prepare before applying for a car loan.

  • Credit score
  • Credit report
  • Vehicle make and model
  • Driver’s licence
  • Personal information
    • Full legal name
    • Date of birth
    • Current address, etc.
  • Financial information, which may include:
    • Outstanding debts
    • Rent
    • Mortgage payments
    • Bank statements, etc.
  • Banking details
  • Employment history and income

Where to Find Car Loans in BC

It used to be that banks and dealerships were the only ways to get a loan to fund your car purchase. With the advancement of technology, there is now a third and more convenient option.

Banks

Banks are the traditional means of borrowing money to finance various purchases, such as cars. You can do a search online to find out which bank has the best car loan rates.

If you want a bank to finance your car purchase through an RBC car loan, for example, visit a branch, fill out a loan application form, submit numerous documents, and discuss your loan request with a bank manager.

The bank assesses your income, savings, and credit score before deciding whether to lend you money or reject your application. If your credit score is low, the bank may deny your request.

Compared with a car dealership, a car loan from a bank can be used to buy any vehicle, whereas dealership financing is often limited to specific car models or vehicles.

Car Dealership

When you use a dealership, you typically select a vehicle first and then request car financing. The dealer will forward your request to the in-house financing department or a third-party lender.

It is common for applicants to be denied car financing after weeks of car shopping and waiting for approval.

Financing from a dealership works similarly to a car loan from a bank. But contrary to banks, dealerships can accept buyers with low credit scores while offering the best car dealership interest rates.

Online Vehicle Retailers

The most convenient car-buying method is through an online vehicle retailer, an option that has grown popular over the last decade.

From shopping for a vehicle to getting approved for car financing, making payments, and getting the car delivered to your home, the entire car-buying process is completely online.

They offer flexible payment options whether you pay via car financing with them or through your bank.

Online vehicle retailers assure car buyers their vehicles are reliable and safe through their safety inspections and vehicle history reports.

What to Look For in a Car Loan

There are different factors you need to consider when choosing a car loan.

  • Interest rate. Most car loans in Canada come with a variable rate, wherein the interest rate will adjust with the prime lending rate. Your rate will change with the Bank of Canada throughout the term of your loan.  
  • Loan range. Car loan providers set a minimum and maximum amount of money they lend you.
  • Term length. This is the length of time when you must repay your car loan. Most auto loans in Canada have term lengths of 4-7 years. The longer the term, the higher the interest rates you pay over time. Focus on the total cost, not just on the monthly payments.
  • Down payment. It is the amount you pay upfront to reduce your loan amount. Making a large down payment will lower your monthly dues and interest charges.
  • Prepayments. Some lenders in Canada allow prepayments to let you pay off your loan early, while others will charge you up to 3% of the loan amount as prepayment penalties. Ask your lender about prepayment privileges before signing a loan contract.

Pros and Cons of Car Loans

Like other personal finance options, car loans in Canada have advantages and disadvantages. As everyone has different needs, car financing may be a disadvantage for some people and a benefit for others.

To determine if it is suitable for you, take a look at the pros and cons below.

Pros:

  • A great option if you do not have the cash to buy a car outright
  • No need to make a large upfront payment
  • It improves your credit, provided you make full, on-time monthly payments
  • You own the car after the loan term ends
  • You can buy the vehicle that you really want
  • Options are available for those with bad or no credit

Cons:

  • Monthly payments
  • Interest rates can be expensive, especially if you have a low credit score
  • A down payment may be necessary
  • More eligibility requirements
  • Fees and penalties can be hefty

Current Car Loan Rates in Canada

Comparing current car loan rates in Canada can help you find the best deal.

Data from the Bank of Canada shows that the current average car loan interest rate is 8.03%.

The following lenders all offer auto loans rates that differ based on your credit rating, loan amount, loan term, and more:

  • Royal Bank of Canada
  • National Bank of Canada
  • Scotiabank Prime
  • CIBC
  • Bank of Montreal
  • Desjardins
  • AutoCapital Canada
  • iA Auto Finance

How to Choose the Best Car Loan For You

Truth be told, there is no single best car loan because what works for one borrower is not the ideal loan solution for another.

Evaluate and compare car loans in Canada to determine the ideal terms, requirements, and costs for individual circumstances.

Here are ways to help you choose the best car loan for you.

  • Compare lenders and dealerships. Do your due diligence and research the different lenders and dealers in your area to find a vehicle you like, with interest rates, loan terms, and repayment plans that are ideal for your finances.
  • Consider newer cars. While newer vehicles can cost higher, they come with better rates than used cars because they pose a lesser risk for lenders. Find popular vehicle models with low depreciation and mechanical reliability.
  • Provide collateral. Offering collateral gives your lender more assurance that you will make on-time repayments.
  • Find a lender that does not run credit checks. Lenders that make hard inquiries can lower your score. If you have bad credit and want to take out a car loan, choose a lender that accepts low credit scores. Their interest rates are higher, however.
  • Borrow what you can afford to pay. Choose a car loan offer with a loan amount that your finances can handle. It will help you avoid staying in debt longer than you need to.

FAQs

What credit score is needed for a car in BC?

Whether you have good, bad, or no credit, you can still get a car loan in BC (albeit with higher interest rates), specifically through online lenders. The minimum credit score, however, for you to enjoy lower rates for a car loan is 650.  

Can I get a bad credit car loan in BC?

Yes. Many online car retailers, such as Carsfast, offer car financing options for British Columbia customers regardless of their credit scores. Your interest rates, however, may be higher if you have bad credit.

What is a good interest rate on a car loan in Canada?

A good interest rate on a car loan in Canada is equal to or closer to the national average rate of 8.03%. Borrowers with high credit scores and high incomes typically enjoy these rates.

How hard is it to get a car loan in BC?

Getting a car loan in BC is not hard since there are many options for all credit scores. You can apply for auto loans in BC from several lenders, including banks, credit unions, online car retailers, and dealerships. 

How much income do you need for car loans in BC?

With most lenders, you need a minimum income of $1,200 to $1,800 per month to qualify for most car loans in BC. If your income is less than that, you may find it difficult to get approval from a lender.

Who is offering zero percent financing on cars in Canada?

Zero percent financing is offered by dealerships or the car manufacturers themselves. Among them are Ford, GM, Nissan, and Toyota, which sometimes offer 0% APR for up to 84 months. Zero percent financing, however, is reserved for clients with outstanding credit.

Related: Bad Credit Car Loans in Canada

Top Loan Offers this month

Compare the best loans for good and bad credit in Canada

Get the best loan rates from lenders regardless of credit score.

Quick online application from the comfort of your home.

Borrow up to $50,000 for 3 months to 60 months.

Loans for any reason with rates from 2.99% to 46.96%.

Check your credit score for free online in 3 minutes or less

Get access to your Transunion credit score for free.

It takes only a few minutes online, and no credit card is required.

Access free identity monitoring and protection.

Includes your credit report updated monthly.

Author

Gravatar for Enoch Omololu, MSc (Econ)
Enoch Omololu, MSc (Econ)

Enoch Omololu, personal finance expert, author, and founder of Savvy New Canadians, has written about money matters for over 10 years. Enoch has an MSc (Econ) degree in Finance and Investment Management from the University of Aberdeen Business School and has completed the Canadian Securities Course. His expertise has been highlighted in major publications like Forbes, Globe and Mail, Business Insider, CBC News, Toronto Star, Financial Post, CTV News, TD Direct Investing, Canadian Securities Exchange, and many others. Enoch is passionate about helping others win with their finances and recently created a practical investing course for beginners. You can read his full author bio.

About Savvy New Canadians

Savvy New Canadians is one of Canada's top personal finance platforms. Millions of Canadians use our site each year to learn how to save for retirement, invest smartly, maximize rewards, and earn extra cash. We have been featured in prominent finance media, including Forbes, Globe and Mail, Business Insider, CBC, MSN, Wealthsimple, and TD Direct Investing. Learn more about Savvy New Canadians.

Free financial education

Expert advice

Free resources

Detailed guides

Leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.