For those looking to get a car loan in Winnipeg, there are several options to consider. Whether you’re looking for new or used car financing, it’s essential to compare offers from various sources to find the best rates and terms that suit your financial situation. Keep in mind that your credit score will greatly influence which rate you qualify for, hence the importance of improving it. Here are some Winnipeg places to explore if you need a car loan:
#1. Directly At The Dealerships
This should be your first stop. Most dealerships offer financing options directly on-site. This can be a convenient way to finance your vehicle as you can often negotiate the purchase price and the financing terms at the same time.
Some dealerships have promotional financing rates, especially when they want to move certain models quickly. These can sometimes offer lower interest rates compared to traditional bank loans.
#2. “Big Five” Banks and Credit Unions
If the dealerhip doesn’t give you good terms, or rejects your application for an auto loan altogether, the Big Five Banks like the Royal Bank of Canada (RBC), TD Canada Trust, Scotia Bank, Scotia Bank, and CIBC should be your next stop.
These banks offer auto loans at competitive rates, but only if your credit score is good enough. It’s beneficial to start with the bank where you already have a relationship.
Credit unions, like Desjardins, often provide lower interest rates for auto loans than banks. In Winnipeg, you might look into Assiniboine Credit Union or Steinbach Credit Union for potentially better finance deals.
#3. Online Lenders
If the above two options fail, you can look into online lenders who have less strict criteria for auto loans. These service not just Winnipeg but Manitoba as a whole and sometimes all provinces.
Companies like Canada Drives, Car Loans Canada, and Loans Canada specialize in auto loans and offer services where they match your application with various lenders.
Some lenders operate entirely online and offer quick pre-approvals and competitive rates. These platforms can be a good option if you’re looking for a straightforward application process.
#4. Alternative Financing
While you’ll mostly likely get higher rates and terms that aren’t as attractive, websites like GoPeer or LendingMate allow individuals to borrow directly from others, often at rates that are more competitive than traditional financial institutions.
Car Loan Comparison Table (Winnipeg, Manitoba)
This table showing some examples of terms should give you a rough (shall we say VERY rough?) idea of what each auto loan lender’s terms and rates. Terms do change often so make sure you check with each lender.
IMPORTANT NOTE: this table was generated with the help of AI so it may NOT be 100% accurate. Please contact each lender to double check their current rate.
| Lender | Interest Rate (APR) | Loan Term (Months) | Minimum Loan Amount | Maximum Loan Amount | Features / Special Conditions |
|---|---|---|---|---|---|
| RBC Royal Bank | 6.99% – 9.99% | 12 – 96 months | $7,500 | Up to 100% of the vehicle value | Pre-approval available, flexible payment options |
| TD Auto Finance | 6.50% – 8.50% | 12 – 84 months | $5,000 | Up to 100% of the vehicle value | Online application, options for used and new vehicles |
| CIBC Auto Loans | 5.99% – 7.99% | 12 – 84 months | $7,500 | Up to 125% of the vehicle value | Prepayment without penalty, flexible terms |
| Scotiabank Auto Loan | 4.99% – 9.50% | 12 – 96 months | $5,000 | Up to 100% of the vehicle value | Pre-approval, option for new and used cars |
| Assiniboine Credit Union | 4.90% – 7.90% | 12 – 84 months | $5,000 | Depends on credit profile | Special rates for members, flexible payment options |
| Car Dealership Financing | 0% – 6.99% (promotional) | 24 – 84 months | No minimum | Depends on vehicle and dealership | May offer 0% financing on new cars, rebates available |
| Manitoba Public Insurance | 8.75% – 9.25% | 12 – 48 months | $2,000 | $50,000 | For used vehicles, longer terms not available |
| Bank of Montreal (BMO) | 6.00% – 8.00% | 12 – 84 months | $5,000 | Up to 100% of the vehicle value | Flexible loan terms, online application available |
| Online Lenders (e.g., CanadaDrives) | 6.99%% – 46.99% | 12 – 60 months | $3,000 | $50,000 | Dependent on credit score, pre-approval, higher rates for lower credit scores |
Key Considerations:
- Interest Rates (APR): The interest rates vary depending on the lender, the borrower’s credit score, and the vehicle type (new vs. used). Lower APRs are usually available for new vehicles, while used vehicles tend to have higher rates.
- Loan Terms: Loan terms typically range from 12 months to 96 months, with some lenders offering more flexibility. Shorter loan terms mean higher monthly payments but less interest paid over the loan’s life.
- Loan Amount: Different lenders have varying minimum and maximum loan amounts. Some lenders offer loans up to 100% of the vehicle value, while others may go up to 125% (like CIBC), which can include extra costs such as taxes, fees, or additional vehicle add-ons.
- Special Features: Some lenders, especially credit unions, may offer lower rates for their members, while dealerships sometimes offer 0% financing as a promotional tool for new vehicles. Pre-approval and flexible payment terms are common features.
- Promotional Rates: Dealerships often have promotional rates (sometimes as low as 0% for new cars) but may require high credit scores or special qualifications. Be cautious of the conditions tied to these promotions, such as shorter loan terms or limited vehicle options.
This table gives a general overview of what car loan options may look like in Winnipeg. Keep in mind that rates and terms are subject to change based on the market and individual financial profiles.
Things to Consider Before Getting a Car Loan in Winnipeg
- Compare rates! Always shop around and compare rates from multiple lenders to ensure you’re getting the best deal possible.
- Credit Score Impact: Your credit score will significantly impact the interest rate you’re offered, so it’s beneficial to check your credit report before applying for a loan.
- Loan Terms: Consider the length of the loan term as a longer loan means more interest paid over time.
Steps to Take
- Assess Your Budget: Determine how much you can afford in monthly payments, keeping in mind the total cost of ownership including insurance, maintenance, and fuel.
- Pre-approval: Getting pre-approved for a loan can give you a better idea of what you can afford and puts you in a stronger negotiating position with dealers.
- Read the Fine Print: Be sure to understand all the terms and conditions before signing a loan agreement. Look for any hidden fees or penalties for early repayment.
By exploring these options and considering your financial circumstances, you’ll be better positioned to find a car loan in Winnipeg that meets your needs.
Mark Turner is a retired financial writer that now enjoys blogging about different financial topics, such as commodities, inflation, debt, retirement, alternative investments and Canadian politics.
