Frequently Asked Questions About Car Loans

Although it's not trouble-free, leasing offers low monthly payments and the opportunity to change cars every two or three years. In the long run, a car loan may be a less expensive alternative. Whatever you choose to do, gather the right information and you'll be sure to drive a better deal.

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Many dealerships are authorized to offer RBC Royal Bank auto financing. To ensure your dealership is authorized or to find a dealership, click here. Alternatively, you can visit your branch, apply by phone by calling 1-800-769-2599, or even use the on-line loan application in this Web site — whichever is most convenient for you.

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For fixed-term loans, each monthly payment consists of a portion of interest and a portion of principal. The proportion of interest is higher in the first payment, and it reduces as the principal is repaid.

For variable rate loans, there are 2 options.

• A regular blended payment amount is equal payments consisting of principal and interest paid each month during the term of the loan. The principal and interest portion of the regular payment amount will vary depending on the number of days in the month and on the current loan interest rate.
  
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• The payment can be set up as a principal amount plus interest which means that the principal payment is the same but the interest portion will vary depending on the number of days in the month and on the current loan interest rate.

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You can pay off your RBC Royal Bank car loan any time you like, usually with no early repayment penalties.

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