Skip to main content

Why Newcomers Choose RBC

We know a vehicle offers freedom, flexibility and easy access to the places you need to go. A car is especially important to newcomers working to settle in a new country. That’s why we offer convenient and flexible financing options to help you drive away with your first car in Canada.

No Canadian credit history required

You may be eligible for an RBC car loan even if you have no Canadian credit history!4

Financing terms up to 96 months available

Take up to 96 months to repay your loan – financing is available up to $75,000 or more4.

RBC financing available at over 4,500 dealerships

Finance a new or used vehicle up to 10 years old right at the dealership

Enjoy flexible repayment options

Pay monthly, semi-monthly, bi-weekly or weekly. There’s no penalty to pay off your loan early.

Car Loan Calculator

See how your interest rate, down payment amount and financing term could affect your loan payment.

Error: Missing information
Error: Missing information
Error: Missing information

Your Estimated Fixed Rate Loan Payment is:

-
Loading
And the total interest costs are    -
Find a Dealer

Where applicable, loan terms are subject to renewal at the end of the term.

This calculation is an estimate based on the accuracy and completeness of the data you have entered and the indicated estimated interest rate, is for illustrative and general information purposes only, and is not intended to provide specific financial or other advice, and should not be relied upon in that regard. You should speak with your professional accountant or other professional advisors before making a final decision to ensure any strategy meets your overall financial needs and that your personal circumstances have been taken into account. Your Estimated Fixed Rate Loan Payment does not include any registration or administration fees that may be applicable. Royal Bank of Canada does not make any express or implied warranties or representations with respect to any information or results in connection with the calculator. Royal Bank of Canada will not be liable for any losses or damages arising from any errors or omissions in any information or results, or any action or decision made by you in reliance on any information or results.

Four Steps to Buying a Car in Canada96

Canadian Driving Requirements

Before you drive your new car away, there are a few steps you’ll need to take first:

  • Ensure you have a valid driver’s license. It is mandatory to drive with a valid driver’s license in Canada. In some provinces, it is strictly required to have a Canadian license – in others, you may be able to drive with your International Driving Permit (IDP). Please note that some driving laws may be different than in your home country. Driving guides are available at service centres, online and in stores. More details can be found on the Government of Canada website.
  • Purchase car insurance. You are required to have car insurance coverage before you drive away with your new car. It’s easy to buy at insurance companies by phone or online, or through the dealership. Generally, insurance is purchased after you buy your vehicle, as the vehicle details will be needed.
  • Register your vehicle. This must be done shortly after your purchase at a provincial service office. Dealers will often do this for you, so be sure to clarify with your dealership.

Visit our Car-Buying Checklist For Newcomers page for more details on how to complete these steps.

View Car-Buying Checklist

Choosing a Vehicle96

When buying a vehicle, it’s a good idea to ask yourself a few key questions to help you determine what type, size and cost of vehicle is right for you.

Vehicle Selection

  • How many people will be driving? How much distance will I usually travel? Is fuel efficiency important?
  • Do I need a vehicle that can handle tough road conditions?
  • Are there any specific features I need or want out of a car?

Personal Needs

  • What is my car buying budget? Are there any considerations?
  • Ex. Auto insurance, fuel, parking, maintenance/repairs, registration fees, car loan repayment

New or Used?97

As you look at cars, one of the first decisions will likely be whether to buy a new or used car. Your choice will depend on your budget, needs and personal preferences. Here is a breakdown of key differences.

New or Used Table
New Used
Where to buy Can be purchased directly from dealerships or manufacturers. Can be purchased from dealerships, private sellers and online marketplaces.
Payment Can be leased, financed, or bought outright. Financing is available on most vehicles (with exception) and select vehicles can be leased. Used vehicles can also be bought outright.
Price More expensive than used.
Manufacturers may have incentive programs.
Prices for the same car can fluctuate so make sure to shop around.
Trade-In/Resale Value Trading in and selling will be easier. New vehicles depreciate faster, particularly over the first one to two years. Have already experienced most of the depreciation and will retain more value.
Older vehicles may not be as attractive to prospective buyers.
Warranty Normally includes a factory warranty including bumper-to-bumper coverage and roadside assistance. Unless it’s a certified pre-owned vehicle, you may wish to purchase an extended warranty.
Features Will include the most up-to-date technology, features and options. Technology will be older and possibly obsolete.
May not integrate with smartphones.
Financing Lower financing rates compared to used vehicles. Higher financing rates compared to new vehicles.

Buy or Lease?96

If you’re looking at new vehicles, you have the option to lease your car, buy it outright or get a car loan to finance the purchase over time. There are a number of factors that can help you decide which option is right for you.

Lease or Buy Table
Buy Lease
How to apply You can get your car loan where you buy your car – you can apply for an RBC car loan at over 4,500 dealerships.
For Private Sale loans, you can secure a personal loan directly with RBC or a lender of your choice.
Leases are offered at leasing companies or can be arranged directly at the dealership.
Duration Car loans are available for terms of 1 – 10 years. Car leases are generally 3 – 4 years but can be as short as 2 years and as long as 5.
Ownership You own the vehicle after all loan payments are made. The leasing company owns the vehicle. You pay the depreciation of the vehicle over the lease term.
Mileage Kilometers are unlimited. Your lease contract will come with a kilometer limit.
Payment Options You can pay off the loan early without penalty. You will need to pay termination fees if you end the lease early.
Maintenance Repairs for wear-and-tear are the responsibility of the car’s owner. There may be additional fees charged to you at the end of the lease for wear-and-tear on the vehicle.
Other Considerations You may be eligible for a loan with no Canadian credit history.1
A car loan may be a good option if you plan to drive your car a lot or want to keep it for five years or longer.
A lease may be a good option if you want to get a new car every two or three years.

The RBC Newcomer Advantage

Get what you need for a great financial start in Canada. Discover products and services that can help you settle in faster. Plus, get up to a $15,000 credit limit on a new RBC credit card9.

Tools and Resources

Learn more about buying and financing a car in Canada

Buying Your First Car in Canada Checklist

Find out what steps you need to take as you shop for your first car.

View the Checklist

Advice by Visa Status

Select your Visa status for custom advice, offers and solutions:

Special Financing Rates Available With These Featured Manufacturers1Disclaimer

Chevrolet

Chrysler

Hyundai

KIA

Tesla

Alfa Romeo

Buick

Cadillac

Dodge

Fiat

Genesis

GMC

Jeep

Maserati

RAM

Special Financing Rates Available With These Featured Manufacturers1Disclaimer

Chevrolet

Chrysler

Hyundai

KIA

Tesla

Alfa Romeo

Buick

Cadillac

Dodge

Fiat

Genesis

GMC

Jeep

Maserati

RAM

How to Apply for an RBC Car Loan

Let us help you buy your first car in Canada and get on the road faster!

  • Visit any of our trusted partner dealers
  • Test drive a new or used car
  • Discover dealer incentives
  • Apply for financing onsite

Ask for RBC financing at over 4,500 dealerships.

Find a Dealer