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Kilometre Allowance
No Hidden Catches Or Costs
If your vehicle has been driven more than a total of 24,000 km per year, it's subject to an excess kilometre charge of 12 cents per kilometer. That's it and that's all.
The excess kilometre charge is deducted from the guaranteed Buy-Back value at the end of your loan. However, if you know you'll be driving more than the total allowance, you can include the excess kilometre charge in your monthly payment.
Example 1:
You expect to drive about 90,000 km during the three years of your RBC Royal Buy-Back term. The excess kilometre fee would be $2,160 (90,000 km - 72,000 km X $0.12).
Your monthly loan payments are adjusted this way:
| Total km expected: |
90,000 |
| Total excess km (90,000 - 72,000): |
18,000 |
| Total excess km charge (18,000 X $0.12): |
$2,160 |
| Your monthly payment will be increased by: ($2,160/36): |
$60 |
Example 2:
You're unsure about the number of kilometres the car will be driven during the three-year period. It's possible that the kilometres might exceed 72,000, and you don't want to face any surprises at the end of the loan term. You can arrange to pay an excess kilometre charge of $15 per month (a total of $540), to cover 4,500 additional kilometres.
If you have driven less than 72,000 km no excess kilometre charge applies and the $540 will be returned.
Or:
Excess kilometre charges can be avoided altogether with an RBC Royal Bank Instalment Car Loan.
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