How to Use This Calculator
Use this calculator to determine your monthly car loan payment and understand the full cost of financing a second hand vehicle in Canada.
Select Your Province
Start by selecting your province from the dropdown menu. Sales tax rates on used cards vary significantly in Canada based on the province and if the car is purchased from an individual or a dealership, ranging from 0% in Alberta to 15% in New Brunswick. This is important because you must pay sales tax on used cars even when buying from a private individual. If you buy a used car from an individual, the seller won't charge you the sales tax, you will still have to pay it when you register the vehicle at your provincial registry office. The calculator automatically applies the correct combined GST, PST, or HST rate for your province.
Select the Purchase Type
Use this picker to indicate whether you're buying from a licensed dealership or a private individual. In Canada, sales tax on used vehicles varies significantly based on this choice. For example, Alberta charges 0% for private sales but 5% GST from dealerships, while Quebec charges 9.975% for private sales versus 14.975% from dealers. Some provinces have unique rules: Saskatchewan don't charge any sales tax for cars sold privately under $5,000, and British Columbia uses tiered sales tax rates for private sales that increase with vehicle value (12% under $125,000, up to 20% for luxury vehicles). Selecting the correct purchase type ensures accurate tax calculations for your situation.
Enter the Car Purchase Price
Input the agreed-upon purchase price for the vehicle. This is the amount you're paying the seller before any taxes, down payment, or trade-in value. Whether you're buying from a dealership or a private seller, this base price is what sales tax will be calculated on.
Enter Your Down Payment
Add the amount of cash you'll put down upfront. A larger down payment reduces the amount you need to finance, which lowers your monthly payment and total interest costs. There's no standard down payment requirement for used cars, so enter whatever amount makes sense for your budget. The calculator will show you what percentage of the purchase price your down payment represents.
Enter Your Interest Rate
Input the annual interest rate you've been offered. Used car loan rates are typically higher than new car rates, commonly ranging from 6% to 15% depending on your credit score, the vehicle's age, and the lender. And while many Canadian used cars dealerships do finance car purchases from people with low credit score, buyers with bad credit score can expect interest rates of up to 30%.
Enter Your Loan Term
Select your loan term in months, typically ranging from 12 to 96 months. Common terms for used cars are 48, 60, or 72 months. Keep in mind that longer terms mean lower monthly payments but significantly more interest paid over time. Also consider that you don't want to be making payments on a car longer than it will remain reliable.
Enter Trade-In Value (Optional)
If you're trading in your current vehicle, enter its value here. The trade-in value reduces the amount you need to finance, just like a down payment. If you're not trading in a vehicle, simply leave this at zero.
Understanding Your Results
The calculator displays your monthly payment prominently at the top, followed by the total loan amount (after down payment and trade-in are deducted) and total interest you'll pay over the life of the loan.
The Cost Breakdown section shows the complete picture of your purchase. You'll see the car purchase price, the exact sales tax amount based on your province's rate, and the total price with tax. If you entered a down payment or trade-in value, these amounts are subtracted to show your amount financed. The breakdown then displays total interest based on your rate and term, followed by the total amount you'll pay over the life of the loan.
This breakdown is particularly important because many buyers forget about sales tax when budgeting for a used car purchase. Taxes that must be paid when registering the vehicle, even if you're buying from a private seller who doesn't collect the tax.
The calculator helps you see whether you can afford both the monthly payment and the upfront costs including down payment and sales tax. Even if you finance the sales tax amount by including it in your loan, you need to budget for registration fees, insurance, and any immediate repairs or maintenance the used vehicle may need, which this calculator does not include.
