Ontario is Canada's largest car market, with new vehicle prices averaging in the low-$50,000s in 2026. Ontario buyers pay 13% HST on new and dealer-used vehicles — the highest combined rate among major provinces. Typical car loan interest rates in Ontario range from 5%–7% for good-credit borrowers to 6.99%–9.99% for used car financing. The most common loan term is 72 months (6 years), though 60-month terms remain popular for new cars. Ontario has no provincial EV rebate in 2026, but federal EV incentives provide up to $5,000 for eligible battery electric vehicles and $2,500 for plug-in hybrids.
Illustrative taxes and payments — dealer fees, lender rules, and UVIP-based private-sale tax may differ. Not a financing offer.
Monthly payment
$692.31
Amount financed: $34,550
HST (13% ON): +$4,550
Total interest: $6,989
Total cost of loan: $46,539
Price, tax & interest
| Vehicle Price | HST (13%) | Total Out-of-Pocket |
|---|---|---|
| $25,000 | $3,250 | $28,250 |
| $35,000 | $4,550 | $39,550 |
| $50,000 | $6,500 | $56,500 |
| $65,000 | $8,450 | $73,450 |
| $80,000 | $10,400 | $90,400 |
Ontario charges 13% HST on new vehicles and dealer-used vehicles. Private used vehicle sales are taxed at registration based on the higher of the purchase price or the wholesale book value from the Used Vehicle Information Package (UVIP). Always factor HST into your total budget — it significantly increases the financed amount.
| Credit Profile | Typical APR | On $40,000 / 72 months |
|---|---|---|
| Excellent (750+) | 5.0%–6.5% | $643–$673/month |
| Good (680–749) | 6.5%–8.0% | $673–$703/month |
| Fair (600–679) | 8.0%–12.0% | $703–$778/month |
| Poor (below 600) | 12.0%–24.9% | $778–$1,040/month |
Ontario has no provincial passenger EV rebate in 2026. However, federal EV incentives apply: up to $5,000 for eligible battery electric vehicles (BEVs) and up to $2,500 for eligible plug-in hybrid electric vehicles (PHEVs). Vehicles must be priced under $55,000 (or $65,000 for larger models) to qualify. The rebate is applied at point of sale by the dealer. Ontario's high 13% HST on a $55,000 EV adds $7,150 to the purchase price — partially offset by the $5,000 federal rebate.
Ontario charges 13% HST on new vehicles and dealer-used vehicles. On a $50,000 car, HST is $6,500 — bringing the total to $56,500 before any rebates or fees. Private used car sales are taxed at registration based on the higher of the purchase price or the wholesale book value.
Car loan interest rates in Ontario range from 5%–7% for excellent-credit borrowers on new vehicles to 6.99%–9.99% for used car financing. Some lenders advertise promotional rates as low as 0%–2.9% on select new models. Used car rates from non-prime lenders can exceed 12%–20%.
72 months (6 years) is the most common car loan term in Ontario in 2026, as it lowers monthly payments. However, longer terms mean more total interest paid. A 60-month term costs less in total interest while keeping payments manageable. Avoid terms over 84 months — you may owe more than the car is worth.
Ontario has no provincial passenger EV rebate in 2026. Federal incentives provide up to $5,000 for eligible BEVs and $2,500 for PHEVs on vehicles priced under $55,000 ($65,000 for larger models). The rebate is applied at point of sale.
Used cars purchased from a dealer in Ontario are subject to 13% HST. Private used car purchases are taxed at vehicle registration through Ontario's retail sales tax — based on the higher of the purchase price or the wholesale book value from the UVIP. This prevents buyers from underreporting the sale price to reduce taxes.
Most Ontario lenders prefer a credit score of 650+ for standard car loan approval. Scores of 720+ typically qualify for the best rates (5%–6.5%). Scores below 600 may still qualify but face higher rates of 12%–24.9% and stricter terms. Some dealerships offer financing for all credit levels through subprime lenders.
Educational estimates only. Not a loan offer.