Types of CIBC car loans
CIBC provides personal car loans for new or used cars with an option not to make a down payment. Loan terms vary from 1 to 8 years with fixed and variable rates.
The minimum borrowing amount is $7,500, with the possibility to finance up to 100% of the vehicle cost, depending on the car's age.
Auto loans are available at over 3,200 dealerships. You may ask for CIBC financing when you apply directly at the local car dealership. If you buy a vehicle outside dealerships, just apply online or at the banking center. You don't have to be an existing CIBC client.
Other options:
- A car loan for newcomers is an offer for people living in Canada for five years or less with no credit history.
- CIBC Green Vehicle Loan is a particular program for electric, hybrid, or fuel cell vehicle with promotional rates only available for green vehicles from CIBC-partnered dealerships. In addition, the bank will donate $25 to the Nature Conservancy of Canada. The minimum loan amount is $20,000.
You could also apply for a CIBC personal loan or line of credit to finance your vehicle purchase.
Paying the loan in full or part with no prepayment penalty is possible. Also, you can skip up to two payments yearly, but the interest will accrue.
How to apply for a CIBC car loan?
You can obtain a CIBC Personal Car Loan by applying online or visiting a branch. If you apply at a dealership, you are not obliged to be a CIBC client.
Requirements
To be eligible for a CIBC car loan you:
- Must be a Canadian resident
- Must be over the age of majority in your province
- Meet the bank's standard lending criteria
- Haven’t been declined for credit from CIBC in the last six months
- Haven’t declared bankruptcy in the past seven years
- Have a minimum total annual income of $17,000
- Have a government-issued photo ID, a void cheque, and proof of employment, for example, a recent pay stub.
To qualify for a CIBC car loan for newcomers, you must provide:
- Proof of permanent residency in Canada
- A valid Canadian driver's license
- One proof of employment (a recent pay stub or a letter from your employer).
Pros and cons
Pros
- No prepayment penalty
- The possibility of no down payment
- Apply and manage your loan through online banking or a mobile app
- Used and new car purchase
- Flexible repayment terms - you choose the frequency
- Special offers for newcomers and green vehicles
Cons
- A significant minimum loan amount is required
- Interest rates and fees aren't disclosed on the website
- A good credit score and stable income are required
How to pay?
You could repay your car loans through your CIBC bank account using online or mobile banking: sign on, complete no charge pre-authorized Electronic Funds Transfer, or add your loan as a bill payee.
You could make your payments scheduled to avoid an NSF fee and delays.
Also, you could make it in person at the CIBC branch.
Call an advisor for any loan questions at 18665258622.
