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Car Loans

Flexible Financing for Your Vehicle Purchase

Whether you take advantage of on-the-spot vehicle financing at a car dealership, or apply for a loan at a branch, an RBC Royal Bank® car loan is a convenient and flexible way to finance a new or used vehicle.

You are on: Features and Benefits

Features and Benefits of an RBC Royal Bank Car Loan

When you choose a car loan from RBC Royal Bank, you have the flexibility to finance your vehicle directly at the dealership—or through an RBC Royal Bank branch. Here’s a quick comparison to help you choose:

  Financing at the Dealership Applying at a Branch
Typically ideal if you:
  • Know the type of car you want
  • Know what you can afford
  • Are still car shopping
  • Aren’t sure what you can afford
On-the-Spot Financing


(At dealers that offer our financing)


Flexible Amortization Terms

(How long you'd like to take to pay off your car loan.)


(1-8 years)


(1-7 years)

Fixed and Variable Rates

Compare to see what’s right for you.



(Switch from variable to fixed—or vice versa—at any time.)

Easy Payment Options (opens new window) Yes Yes
Early Payment Penalties (opens new window) No No
Skip-a-Payment® Option(1) (opens new window) Yes Yes
Optional Loan Insurance (opens new window)


(Ask your dealer about insurance options.)


(LoanProtector® Life and Disability Insurance)

Financing for Boats or Recreational Vehicles


(Boats and RVs—at dealers that offer our financing)


(Boats, RVs, snowmobiles and motorcycles)

You are on: Choosing a Fixed or Variable Rate Car Loan

Fixed or Variable Rate—What's Right for You?

Here's a quick overview of the features and benefits of a fixed versus variable rate car loan:

With a fixed rate car loan:
  • Your interest rate is locked in for the entire term.
  • Your amortization term (how long it takes to pay off your loan) can go up to 7 years—or 8 years with dealership financing.
  • You will know exactly how much interest you'll pay over the loan term.
  • 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 (not available with dealership financing).
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 (not available with dealership financing).

If you're not sure what's right for you, talk to our finance and insurance manager at your dealer or an RBC Royal Bank credit specialist (opens new window).

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

Expand If I buy a vehicle from a dealer, can I finance it with an RBC Royal Bank car loan?

Expand How are car loan payments structured?

Expand Can I pay off my car loan early? Are there any charges?

Expand How do I apply for a car loan?

Expand Where can I find information about buying a car?

Expand Should I borrow to buy a car or lease one?


Apply for a Car Loan

  • Find a Dealer for access to on-the-spot vehicle financing
  • Apply Now
  • Call 1-800-769-2511 to talk to a credit specialist
The principal and interest portion of any skipped payment will remain outstanding until the end of the term of your loan at which time the skipped payment must be repaid. Interest will continue to accrue upon the total amount of the skipped payment until such time that the skipped payment is repaid in full. You may repay the skipped payment at any time.

Personal lending products are provided by Royal Bank of Canada and are subject to its standard lending criteria.


Take Action

  • Find a Dealer that offers RBC Automotive Financing
  • Apply Now
  • Call 1-800-769-2511 to talk to a credit specialist


On-the Spot Financing

Apply at any dealership that offers RBC Royal Bank vehicle financing. It makes buying a car quick, simple and convenient! You can also apply by phone or at an RBC Royal Bank branch.


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.


Early Payment Penalties

We never charge a penalty for early payment. You can 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 one monthly payment each year(1), without penalty.


Optional Loan Insurance

Protection for your family’s financial future – so you can worry less about your family’s ability to keep up with loan payments if something unexpected should happen. Learn more.