You are on: Features and Benefits
|
|
You are on: Financing at a car dealership
Features and Benefits of a Retail Dealer Finance Car Loan
- On-the-Spot Financing. You can apply at any dealership that offers RBC Royal Bank vehicle financing. It makes buying a car quick, simple and convenient! You can also apply online, by phone or at your branch.
- Flexible Terms. Choose an amortization term from 1 to 8 years (this is how long you'd like to take to pay off your car loan).
- Fixed and Variable Rates. Choose a fixed rate loan or a variable rate loan See which option is right for you.
- Easy Payment Options. Make your loan payment monthly, semi–monthly, weekly or even bi-weekly. You can have it deducted automatically from your chequing account with RBC Royal Bank or another bank.
- No Early Payment Penalties. Pay more than your fixed payment at any time, or even pay off your loan in full, without penalty.
- Skip-a-Payment Option. Skip up to the equivalent of 1 monthly payment each year(1), without penalty.
- Insurance Options are Available. Designed to provide financial backup during difficult times, insurance provides valuable protection for you and your family. Ask your automotive dealer about insurance options at the time of purchase.
Need financing for a boat or another type of vehicle?
Financing for boats and Rvs is also available through authorized dealers.
You are on: Applying online or at a branch
Features and Benefits of an RBC Royal Bank Car Loan
- Flexible Terms. Choose an amortization term from 1 to 7 years (this is how long you'd like to take to pay off your car loan).
- Fixed and Variable Rates. Choose a fixed rate loan or a variable rate loan. Switch from a variable rate to a fixed rate (or vice versa) at any time if rates change. See which option is right for you.
- Easy Payment Options. Make your loan payment monthly, semi–monthly, weekly or even bi-weekly. You can have it deducted automatically from your chequing account with RBC Royal Bank or another bank.
- No Early Payment Penalties. Pay more than your fixed payment at any time, or even pay off your loan in full, without penalty.
- Skip-a-Payment Option. Skip up to the equivalent of 1 monthly payment each year(1), without penalty.
- Optional LoanProtector® Insurance. Designed to provide financial backup during difficult times, LoanProtector Life and Disability Insurance provides low-cost, valuable protection for you and your family.
Need financing for a boat or another type of vehicle?
We also offer loans for RVs, snowmobiles, motorcycles and personal watercraft. Financing is available directly through RBC Royal Bank.
|
You are on: Choosing a Fixed or Variable Rate Car Loan
Fixed or Variable Rate—What's Right for You?
|
|
You are on: Financing at a car dealership
When you apply for a loan at a dealer? you can choose either a fixed or variable rate loan:
With a fixed rate car loan:
- Your interest rate is locked in for terms up to 5 years. However, your amortization term (how long it takes to pay off your loan) can go up to 8 years.
- You will know exactly how much interest you'll pay over the loan term (if your term is 5 years or less).
- Your payment amount and term will not be affected by changes in interest rates.
With a variable rate car loan:
- You can choose up to a 7-year amortization term.
- You could save money if interest rates are already low or fall further.
- If interest rates rise, your payments will likely stay the same, but your amortization term will increase.
- If interest rates fall, your payments will stay the same and your amortization term will decrease, meaning you could pay off your loan sooner.
If you are not sure what's right for you, talk to our finance and insurance manager at your dealer.
You are on: Applying online or at a branch
When you apply for an RBC Royal Bank car loan, you can choose either a fixed or variable rate loan:
With a fixed rate car loan:
- Your interest rate is locked in for terms up to 5 years. However, your amortization term (how long it takes to pay off your loan) can go up to 7 years.
- You will know exactly how much interest you'll pay over the loan term (if your term is 5 years or less).
- Your payment amount and term will not be affected by changes in interest rates.
- You can switch to a variable rate at any time if rates fall.
With a variable rate car loan:
- You can choose up to a 7-year amortization term.
- You could save money if interest rates are already low or fall further.
- If interest rates rise, your payments will likely stay the same, but your amortization term will increase.
- If interest rates fall, your payments will stay the same and your amortization term will decrease, meaning you could pay off your loan sooner.
- You can switch to a fixed rate at any time if rates go up.
If you are not sure what's right for you, an RBC Royal Bank credit specialist can help you choose.
|
You are on: Questions and Answers
Questions and Answers about Car Loans
Below are answers to some common questions asked about car loans. If you don't find the answer you want here, an RBC Royal Bank credit specialist would be happy to answer your questions.
Expand All
Collapse All
Should I lease a car or borrow to buy one?
Choosing between leasing and buying really depends on what your priorities are, how you plan to use the vehicle, and what you can afford. Both options offer benefits that appeal to different people. To know what works best for you, decide how you will use your vehicle and look at how each option meets your needs.
When you lease, you make monthly payments in exchange for the exclusive use and possession of a vehicle instead of buying one. So this is a great option if you want to drive a new vehicle every few years.
However, it is very important to be aware of the conditions that come with leasing. For example, often there are a maximum number of kilometres you can drive in a year, the vehicle must be regularly serviced according to the terms and conditions of the lease, and there are penalties if you break the lease before the end of the term.
While there may be advantages to leasing, especially if you want to change cars frequently, it's not trouble-free. So if you're not able to work within certain limits and/or you intend to keep your car for several years, as many people now do, borrowing to buy one may be a less expensive and more practical alternative.
When you buy a vehicle and you obtain financing, you're still making monthly payments. Car loan terms range from 1 to 7 years, so the monthly payment amount can be adjusted to fit your budget.
You also have the flexibility to pay it off faster and, once your loan is paid, you'll have a fully-owned vehicle. The best part is, those monthly payments will stop, freeing up cash for other things.
Whatever you choose to do, gather the right information and you'll be sure to drive a better deal.
To Top 
If I buy a vehicle from a dealer, can I finance it with an RBC Royal Bank car loan?
We offer the convenience of on-the-spot financing and competitive rates through many dealerships across Canada. If you purchase your vehicle through one of these dealerships, simply tell your dealer that you want financing through RBC Royal Bank.
Find a dealer for access to on-the-spot vehicle financing.
To Top
How are car loan payments structured?
How your payments are structured depends on whether you choose a fixed rate or variable rate car loan:
If you choose a fixed rate car loan, each monthly payment will include a portion of interest and a portion of principal. When you first start paying your loan, the majority of your payment will cover interest. As you pay off your loan, more of each payment will go towards paying down principal.
If you choose a variable rate car loan, you have two payment options:
- Blended Payments: Your payment can be a regular blended payment amount. This means your regular payment remains the same for the term of the loan. The amount of your payment that goes to principal and interest will vary depending on the number of days in the month and the current loan interest rate.
or
- Principal Plus Interest Payments: Your payment can be set up as a principal amount plus interest. This means that each payment may be slightly different. The principal payment stays the same but the interest portion varies depending on the number of days in the month and on the current loan interest rate.
To Top
Can I pay off my car loan early? Are there any charges?
You can pay off your RBC Royal Bank car loan any time you like, with no early prepayment charges.
To Top
How do I apply for a car loan?
You can finance your vehicle at any dealership that offers RBC Royal Bank vehicle financing. It makes buying a car quick, simple and convenient!
Find a dealer for access to on-the-spot vehicle financing.
You can also apply online, call 1-800-769-2599 or visit an RBC Royal Bank branch.
To Top
Where can I find information about buying a car?
Visit our Buying a Car section for tips and advice on buying a new or used car, leasing vs. borrowing and more.
To Top
Account Selector
Assess your current financial situation to help you plan for the future with our Debt Reduction Plan.
Car Loans
Apply for a Car Loan
Find a Dealer for access to on-the-spot vehicle financing 
Call 1-800-769-2511 to talk to a credit specialist
