LoanGoose — Canadian loan comparison loangoose.ca

Calculator · Payment and total cost on a vehicle loan, including your down payment and trade-in.

Car loan payment calculator

Enter the vehicle price, your down payment, any trade-in value and the rate and term to see the monthly payment, total interest and the total cost of the vehicle.

Run the numbers

Monthly payment $506.91

A longer term lowers the payment and raises the total interest, and it also leaves you owing more than the vehicle is worth for longer. Check the cost of insurance and any mandatory add-ons separately.

How this works

What drives the cost

The amount financed is the price minus the down payment and the trade-in value. The rate and the term then decide the payment and the total interest. Stretching the term is the most common way to make a car affordable on paper and expensive in fact.

Depreciation and negative equity

A vehicle loses value fastest in its first years, while a loan balance falls slowly at first. On a long term, that gap can leave you owing more than the vehicle is worth, which becomes a problem if it is written off or you need to sell. A larger down payment reduces that risk.

Costs outside the loan

  • Insurance, which varies enormously by vehicle and driver.
  • Maintenance and tyres, which are higher on used vehicles.
  • Dealer add-ons such as extended warranties, which are usually cheaper elsewhere.
  • Any lien or registration fee.

Should you finance at the dealer?

Dealer-arranged financing is convenient and sometimes subsidised, but it is not automatically competitive. Comparing the rate and total cost with your own bank or credit union costs nothing.

Questions

Is a longer car loan term a good idea?

It lowers the payment and increases the total interest, and it lengthens the period where you may owe more than the vehicle is worth. Shorter terms cost less overall if the payment fits.

Do I need a down payment?

Not always, but a larger down payment reduces the amount financed, the interest and the risk of negative equity.

Is a car loan secured?

Usually the vehicle is the security, which is why the rate is often lower than unsecured borrowing. That also means the lender can repossess it if you default.

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We match, we do not lend. No amount, term or rate is promised on this page — the calculator only models the numbers you entered.

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LoanGoose is a loan matching and comparison service, not a lender. We do not make loans, set rates or make credit decisions. We may earn a commission when you click or apply through our links. The lowest rates are only available to the most qualified applicants.

Sources

  1. Financial Consumer Agency of Canada — debt and borrowingFinancial Consumer Agency of Canada, as of 2025-01-01
  2. Payday Lending Regulations, SOR/2024-114Government of Canada (Canada Gazette), as of 2024-06-19
  3. OSFI Guideline B-20Office of the Superintendent of Financial Institutions, as of 2024-01-01

Every figure on this page is attributed to the publisher above. Where a value could not be verified against the publisher's own publication, it is left out rather than estimated.

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