Borrowing to Buy a Car
In Canada, many people consider a car a necessity
for getting to work or taking family members where
they need to go. But even a used or economy car is
expensive. That’s why a lot of Canadians borrow
to purchase a vehicle.
A car loan allows you to borrow the full amount of
the purchase price of a car, and pay it back over a
predetermined term, typically one to five years. We
offer two main types of car loans. Both offer competitive
rates and flexible terms.
Royal Buy-Back® Car Loan
The Royal Buy-Back® Car Loan combines
the best features of both leasing and car loans, providing
an affordable way to buy a car under flexible terms.
Here’s how it works:
- You can borrow up to 100% of the purchase price
of the car.
- You choose the repayment schedule (weekly, bi-weekly,
monthly or semi-monthly) and the term (two to five
years).
- You can choose a variable-rate loan (the interest
rate moves with market rate) or a fixed-rate loan
(the interest stays the same for the full term).
- You are allowed to drive more kilometres in the
car each year than you can with most standard lease
agreements.
- You can pay back some or all of the amount outstanding
any time.
- At the end of the term, you can return the car,
or keep it and pay the remaining amount or trade it
in and buy a new car.
By paying less money for the down payment or the loan
repayments, you will have more cash for other needs.
Installment Car Loan
If you expect to drive more than 24,000 kilometres
a year, or you expect to keep your vehicle for a long
time or if you don’t want to owe anything at
the end of your term, an installment car loan may be
the right choice for you.
Like the Buy-Back Loan, an installment loan offers
flexibility:
- You make repayments on a regular schedule that
you choose (monthly, semi-monthly or bi-weekly).
- You can pay back some or all of the amount outstanding
at any time.
- You can choose a variable-rate loan (the interest
rate moves with market rate) or a fixed-rate loan
(the interest stays fixed for the full term).
We can Help You Get Started
An RBC Royal Bank representative will be happy to
discuss down payment options and help you arrange a
car loan. Your representative can even pre-approve
a car loan, so you know exactly how much you will be
allowed to borrow before you look for a car.
You can arrange a car loan by visiting your local RBC Royal Bank branch, or through an Authorized Dealer who offers RBC
Royal Bank Financing.
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for the general guidance and benefit of our clients.
This website is for informational purposes only and is
not intended to provide specific advice. See
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