CIBC Auto Loans Review 2023

James James updated on 6 February 2023

Taking out a loan can be stressful as it represents a financial commitment which will affect your finances for some time. Therefore it is important to shop around and make sure you find the loan with terms that suit you and your specific needs. Statistics show that there is currently over $1.4 trillion of auto debt in Canada. So how to choose the right loan provider?

This review will take you through how a CIBC car loan works, how much it costs and how to get it.

Good to know

CIBC: the basics

  • Founded in 1961
  • Headquartered in Toronto
  • 40,000+ employees
  • 11 million+ clients
  • Total equity: $45 billion

Our CIBC Car Insurance Review

The Canadian Imperial Bank of Commerce is a large, well-established financial institution. As a traditional institution, it has strong relationships with car dealerships meaning that you can take out a loan while buying a car without having to be a CIBC customer already. As it also handles mortgages, it offers lines of credit connected to the equity of your home, allowing you to access more favourable rates. However, as a well-established financial institution, it has less need to compete for business and therefore may not offer you the most competitive interest rates. It does not advertise its interest rates which some customers may find unhelpful.

Pros

  • Buy a new or used vehicle
  • Minimum loan amount of $5,000
  • Up to eight years to pay off your loan
  • Flexibility – you can skip a monthly payment up to twice a year
  • Choose your terms – choose weekly, bi-weekly, monthly or semi-monthly payments
  • Pay off all or part of the loan at any time without penalty
  • Use Electronic Fund Transfer (EFT) to make scheduled payments from your CIBC account with zero charges
  • Possibility of no down payment
  • Apply online for a faster approval

Cons

  • A high credit rating is required
  • Interest rates not listed on the website

What types of car loans does CIBC offer?

CIBC offers three ways to take out a car loan: the CIBC Personal Car Loan, the CIBC Personal Line of Credit and the CIBC Home Power Plan. These all have different minimum loan amounts and work in different ways. A personal loan is a direct loan to you from CIBC, interest rates and repayment terms will be negotiated on the basis of your credit score. A line of credit is a type of revolving loan that does not let you borrow more than a certain amount. A HELOC or Home equity line of credit, uses your house as collateral, making it a type of secured loan, allowing you access to better interest rates and repayment limits.

Take a look at the table below to see how CIBC's types of loans differ.

QualitiesCIBC Personal Car LoanCIBC Personal Line of CreditCIBC Home Power Plan
Minimum loan
$7,500$5,000$10,000
Term Minimum
12 monthsOpenOpen
Term Maximum
96 monthsOpenOpen
Payment Frequency
Weekly, biweekly or monthlyFlexibleFlexible
Security Required

What are the CIBC car loan rates?

You can expect (roughly) to pay between 4% and 8%, but not that CIBC's car loan interest rates are not published on their website. This is because the rates CIBC offers you will depend on a number of factors such as:

  1. What is your credit history?
  2. How much are you borrowing?
  3. How long a term do you want?

Shorter loans offer lower interest rates, but higher monthly payments. Longer loans mean higher interest rates. While their monthly payments will be less, they cost more overall. Lines of credit allow you to pay interest only on the money you actually spend.

Before choosing a CIBC car loan, shop and compare car loan rates with other lenders:

Dreaming of a new ride?

Shop car loans now

CIBC car loan calculator

CIBC has a car loan calculator available on its website to help you calculate how much you can borrow and evaluate financing options.

However, you can also get a quick estimate of car loan payments with our car loan calculator which works for all car loans not just CIBC's offerings. Just enter the amount borrowed and the amount you wish to use as a downpayment. You can then adjust the loan term and the interest rate to suit you and determine the corresponding monthly payments and total interest paid.

How do I apply for a CIBC car loan?

You can apply for a CIBC car loan online, by visiting your local CIBC Banking Centre, or by contacting CIBC Telephone Banking at 1-866-525-8622. You will be asked to provide:

  • Proof of identity and address
  • A valid Canadian driving license
  • Proof of employment
  • A void check

If you are buying a new car, you can take out a loan at the dealership even if you are not already a CIBC client.

apply cibc auto loan
Applying for a CIBC auto loan

Before signing a CIBC car loan, compare rates! Our comparison tool offers quotes from dozens of lenders in just seconds. Find the best rate for you.

Dreaming of a new ride?

Shop car loans now

Can you refinance a CIBC car loan?

It may be possible to refinance your CIBC car loan. When you refinance, a new lender (or your existing lender) buys your remaining debt. They then offer you a new contract under more favourable terms. This could mean extending the length of the loan or decreasing the interest rate. Both lower your monthly payments.

This could be an interesting option if you have managed to improve your credit score since taking out the initial car loan. Refinancing could mean you get access to lower monthly payments or a renegotiated repayment schedule.

Can you get a CIBC car loan with bad credit?

CIBC may still offer you a loan even if you have a bad credit score. CIBC can minimize risk for itself by offering you shorter repayment terms, asking for higher monthly repayments or requiring a cosigner. You will still need to meet these requirements, however:

  • You must not be under the age of majority for your province
  • You must not be a resident of another country
  • You must not have declared bankruptcy within the last 7 years
  • You must not have been declined a loan by CIBC in the last 6 months
  • You must not earn less than $17,000 a year

Can you get a CIBC car loan deferral?

If you are unable to make a payment on your car loan, CIBC allows borrowers to defer up to two payments each calendar year. Interest will continue to accrue during a deferral period. Check the terms and conditions of your contract before you sign. You can discuss a deferral of your payment plan by calling the CIBC car loan contact number: 1-866-525-8622.

A CIBC Line of Credit allows you to stay flexible with your repayments and terms. This may be a better option if you are unsure about being able to make repayments as it prevents debt from spiralling out of control.

How to check a CIBC car loan balance?

You can call the CIBC car loan contact number directly at 1-800-465-2422. Alternatively, you can use your CIBC car loan login to access your account on the website. Once you have successfully logged in to the CIBC car loan client space, hit the My Account button at the top of the page. Here you will be able to see your remaining balance.

You can also make an appointment at a CIBC office. Remember to bring proof of your identity and your policy reference number with you.

How to pay off a CIBC car loan?

You can pay off your CIBC loan over the phone, through the online portal or in person at a CIBC banking branch. If you are sticking to monthly payments, you will be able to set up a regular payment to come out of your bank account. If you wish to pay early or to pay off a lump sum all in one go, you will need to agree on this first with a loan representative.

Check your contract carefully to check if there are penalties for early or lump sum payments. If you have not yet taken out a loan then this is a good thing to discuss with the salesperson before signing.

Interested in a car loan with no early payment penalties? Use our online comparison tool.

Dreaming of a new ride?

Shop car loans now
Did you like this article?
Ask a question, an expert will respond
Your name is required
Comment's content is required.