Finance or pay cash for a new car in Ontario?
A loan costs interest; cash costs what it could have earned. 6 years, cash earning 5% a year, or $5,000 down on a 72-month loan.
The short answer
0% beats cash. A rate above what your cash earns costs more, and at 7% to 8% that's thousands.
−$7,3830% loan, RAV4
+$5,0307.99% loan, RAV4
Loan vs paying cash, 2026 Toyota RAV4 LE · over the whole loan
0% · $567/mo payment−$7,383
4.99% · $658/mo payment+$160
7.99% · $716/mo payment+$5,030
11.99% · $799/mo payment+$11,909
Green costs less than cash, red costs more. Your rate depends on your credit.| 2026 Toyota RAV4 LE | $45,859 | $55,241 +$15,596 it could earn | ✓ −$7,383 $567/mo | +$160 $658/mo | +$5,030 $716/mo | +$11,909 $799/mo |
| 2026 Honda Civic Sedan LX | $35,508 | $55,094 +$12,076 it could earn | ✓ −$5,513 $424/mo | +$119 $491/mo | +$3,756 $535/mo | +$8,892 $596/mo |
| 2025 Kia Telluride EX | $60,991 | $83,282 +$20,743 it could earn | ✓ −$10,117 $778/mo | +$219 $901/mo | +$6,894 $981/mo | +$16,319 $1,094/mo |
| 2026 Chevrolet Silverado 1500 WT 2WD | $59,373 | $78,551 +$20,193 it could earn | ✓ −$9,825 $755/mo | +$213 $875/mo | +$6,694 $953/mo | +$15,848 $1,063/mo |
$55,241
Cash
$55,094
Cash
$83,282
Cash
$78,551
Cash
What it means
- 0% beats cash, unless it costs you a rebate or discount.
- A rate above your return costs more. At 7% to 8% that's thousands.
- Watch the trade-offs. A low rate can replace a cash rebate; a longer term means more interest.
- Payment isn't cost. Fuel, insurance, upkeep and resale count too. The finder shows both.
Loan columns: what the loan costs against paying cash, with the monthly payment; brands' own finance offers aren't applied, so each column is at its rate. Toronto driver aged 35 to 59, 18,000 km a year. Totals include freight, fees, HST, fuel, estimated insurance and upkeep, and resale. Your rate depends on your credit.