Buying a car is an exciting step, but for most people, it also means applying for a loan. Whether you are purchasing your very first vehicle or planning to upgrade, understanding how a Car loan in Canada works is essential. With the right knowledge, you can secure competitive interest rates and make a decision that saves you money in the long run. This guide will explain what a car loan is, what affects your car loan interest rate, and how to navigate challenges like bad credit. We’ll also cover strategies such as refinancing your car loan, choosing between new and used car financing, and how to compare car loan offers effectively.