Canadian Auto Loan Calculator 2025
Estimate the real cost of your auto financing with provincial taxes included. Enter the vehicle price, down payment, and rate to get your monthly payment.
Frequently Asked Questions
How are taxes calculated when buying a vehicle in Quebec?▾
In Quebec, vehicle purchases at a dealership are subject to GST (5%) and QST (9.975%), for a total of 14.975%. These taxes apply on the selling price before the down payment. Your down payment does not reduce the taxable amount.
What is the recommended auto loan term?▾
The standard term is 48 to 60 months. A shorter loan (24-36 months) means higher payments but less total interest. A longer loan (72-84 months) reduces monthly payments but significantly increases total cost. Avoid terms longer than 60 months for a new vehicle.
Is it better to finance at the dealership or through a bank?▾
Compare both options. Dealers sometimes offer very low promotional rates (0% to 1.99%) on certain models, but may compensate with a higher selling price. Financial institutions typically offer more transparent rates. Always get a bank pre-approval before negotiating at a dealership.
What down payment is recommended for an auto loan?▾
A down payment of at least 10% to 20% of the vehicle price is generally recommended. This reduces the amount borrowed, lowers your monthly payments, and helps you avoid being underwater (owing more than the vehicle is worth), especially in the first few years.
Are taxes calculated on the price before or after the down payment?▾
Taxes are calculated on the vehicle's selling price, before the down payment. Your down payment reduces the loan amount, but not the tax base. For example, for a $35,000 vehicle with a $5,000 down payment, Quebec taxes are calculated on $35,000, totaling $5,241.25.