Start by getting car loan quotes from banks
To be sure you're getting the best deal on your car loan you should shop around and get a sense of the most competitive interest rates. Banks will competitively price their loans, which will give you a chance to see what a good deal looks like.
Getting a loan from your bank can prove to be the better option, particularly if your credit score is strong. If you make credit card payments on time and manage your money well, you may be rewarded with a very competitive interest rate.
Next, look into car loans from the dealer
Some car dealers are more willing to negotiate loans than others. Make sure you do your research and get a good understanding of what terms and rates are out there. Once you know that, you can compare those rates and terms against those of the bank.
If the terms and interest rates are similar, you'll need to consider other elements of the loan to determine the better option.
The car loan from the dealer may have better interest rates and monthly payments if you also qualify for rebates and discounts.
Will shopping around for a car loan affect my credit score?
Yes, loan applications of any kind can affect your credit score. So when you're applying for car loans, try to complete all your quotes within a two-week period. All credit inquiries made during this time are usually combined and treated as a single inquiry. This way, you can limit the impact to your credit score.
Get the best of both
You can apply for CIBC financing directly at over 3,200 CIBC-partnered car dealerships across Canada. With competitive rates and up to 8 years to pay, a CIBC Personal Car Loan can help you save money on your next new or used car. You don’t need to be a CIBC client. Simply ask your dealership for a CIBC loan and they’ll help you complete the application on the spot. Learn about applying for a CIBC Personal Car Loan.
Ask for a car loan quote from CIBC
By starting your conversation with CIBC, you'll discover how much you can borrow and at what interest rate. Call a CIBC advisor at 1-866-525-8622 Opens your phone app. to get started.