Types of loans
With auto financing from RBC, you can find solutions for all your vehicle needs — whether it is a car, a boat, or a business vehicle.
- Car loans through a dealer
With RBC auto financing, you can apply for a car loan at a dealership — no need to visit a branch. The minimum amount to borrow is $7,500, and the available terms range from 1 to 8 years. You can choose to pay on a weekly, bi-weekly, semi-monthly, or monthly basis. If you want to pay off your loan in full early, you can do it at any time, penalty-free.
- Loans for electric vehicles
Being committed to building a more sustainable future, RBC encourages using new electric vehicles. If you are looking to buy a Battery Electric Vehicle (BEV), Plug-In Hybrid Electric Vehicle (PHEV), or Hybrid Electric Vehicle (HEV), RBC Bank has the financing options for you. You can apply for an electric vehicle car loan at one of the RBC’s partner dealerships and pay it back within eight years.
Financing of select electric vehicles from manufacturers like Chevrolet, Chrysler, Hyundai, Kia, and Tesla is available at special rates.
- Financing a boat or RV
If you’d like to purchase a boat on RV, consider competitive-rate financing from RBC Bank. You can apply for a loan at any of their partner RV and marine dealers. You can pay on a weekly, bi-weekly, semi-monthly, or monthly basis. The loan term can be up to 20 years, and the early payoff is penalty-free.
- Business vehicle loans
Incorporated businesses, partnerships, non-profit organizations, and registered charities can access business vehicle financing solutions from RBC Bank, including multi-vehicle financing up to $750,000. Just like all RBC car loans, business vehicle loans feature flexible payment schedules and penalty-free early repayment. You can pay your business vehicle loan within up to 8 years.
When purchasing vehicles from certain car manufacturers, you can count on special financing rates.
- Car loans for newcomers
For those who are new to Canada and have no Canadian credit history yet, RBC offers the Newcomer Automotive Loan Program. Under this program, you can get financing of up to $75,000 to buy a new or used vehicle up to 10 years old, with a loan term of up to 96 months. Be ready to make a 15% down payment, though.
Similar to other auto financing options, you can pay on a weekly, bi-weekly, semi-monthly, or monthly basis and pay back your loan in full at your convenience, penalty-free.
How to apply?
To get an idea of how much you can afford to borrow and what your trade-in would be worth, consider using RBC My Auto Affordability Tool. It’s absolutely free and doesn’t affect your credit score.
Once pre-qualified, visit one of RBC’s partner dealerships and ask for RBC financing. Upon getting approval, you can drive away with a vehicle of your choice.
Requirements
To get access to RBC auto financing solutions, you must be a Canadian citizen or a permanent resident of Canada at the age of majority in your province. You must also have a valid driver’s license and a valid bank account.
To apply for most RBC auto financing options, you will need to provide your social insurance number, income verification documents, your personal information, and information about your assets, liabilities, and so on. For some financing options, RBC provides specific eligibility requirements on its website.
To apply for a business vehicle loan, prepare a government-issued photo ID (your driver’s license will be good) and a void cheque for the account you will pay from. In addition, if you have a co-signer, ask them to prepare income verification, such as a bank statement from the last two months or recent pay stubs.
To qualify for a car loan for newcomers to Canada, you must be a permanent resident or a temporary foreign worker who has been living in Canada for less than three years.
Pros and cons
Here are the advantages of RBC car loans:
- Flexible payment options
- Penalty-free early repayment
- Special financing rates for select electric vehicles
- An option to skip one monthly payment each year
- An option to delay payment
- Easy management of your car loan through online banking
Still, there are certain disadvantages to be aware of:
- You can apply for RBC auto financing at a dealership only
- When you skip or delay loan payments, interest will continue to accrue
- While RBC partners with 4,500 dealerships across Canada, still not all the dealers are their partners
How to make a payment?
You can pay for your RBC car loan either through RBC Online Banking or the RBC Mobile app. To prevent missed payments on a due date, you can set up automated payments.