How To Refinance A RBC Car Loan

How To Refinance A RBC Car Loan

Written by Bryan Daly
Fact-checked by Caitlin Wood
Last Updated November 21, 2022

The Royal Bank of Canada (RBC) was established in 1864 and is now one of the largest banks in Canada in terms of revenue. Their global financial institution offers a wide range of products for all kinds of customers, including bank accounts, investments, and wealth management solutions. They also offer flexible loans for new and used cars. 

Before you apply for a car loan at RBC, don’t forget to learn everything you can about its requirements and payment options. For instance, how to refinance an RBC Car Loan.

Can I Refinance My RBC Car Loan? 

Under the right circumstances, you may be able to refinance your RBC car loan. This is when you take out a new car loan with a better interest rate and terms to cover the old loan. You can generally refinance your RBC car loan with RBC or with a new lender. 

Keep in mind that refinancing only makes sense when your credit and finances are in good shape.  

How To Contact The RBC Auto Financing Department?

You can book an appointment with an RBC Auto Financing expert or contact the RBC Auto Financing Department by logging into your RBC Online Banking Account (via the RBC website or mobile app) or calling their toll-free Everyday Banking number: 1-800-769-2511

You can call the Everyday Banking number for inquiries about RBC bank accounts, client cards, mortgages, lines of credit and loans.

How To Check Your RBC Car Loan Balance?

There are two simple ways to check the balance of your RBC car loan:

RBC Mobile App

  1. Log into your app and tap the “Accounts” option in your Navigation Bar. 
  2. Select your Car Loan account
  3. Your balance is displayed at the top of the page    

RBC Online Banking

  1. Sign into your RBC Online Banking portal
  2. Click on your Car Loan account
  3. Your balance is displayed at the top of the page

How To Access The RBC Portal Login?

To manage your RBC car loan, you must first enroll in RBC Online Banking, which is easy once you have a bank account. Just use your RBC debit or credit card to create your online portal. If you don’t have a debit or credit card, you’ll need to get your 5-digit Transit Number and 11-digit Account Number, which you can find on your:

  • Welcome Letter – You should receive this letter shortly after buying your car. Your Transit and Account numbers should appear somewhere on this page. 
  • Annual Statement – Each year, you’ll also get a statement that shows your RBC car loan information, including your remaining balance. Your Transit number is located to the right of your Postal Code, at the top left of the page. Your Account number is in the “Details of Your Loan” box at the centre of the page.

How To Lower The Interest Rate On Your RBC Car Loan?

Here are some ways to get a lower interest rate on your RBC car loan:

  • Increase Your Credit Score – If your credit score is bad (roughly 300 to 600), lenders may not approve you for the best car loans or interest rates. To improve your score, spend some time making timely payments on your other debts. 
  • Compare Multiple Offers – RBC has plenty of options for qualified members but it’s still a good idea to shop around and negotiate with other lenders to see if you can score better deals on car loans. Some alternative lenders might offer lower interest rates and more flexible terms if you agree to refinance with them.     
  • Apply With A Cosigner – If you know someone with good credit and finances, they may be able to co-sign your loan and help you qualify for a lower rate. Since they’ll become responsible for your payments if you can’t afford them, this offers RBC extra security. As such, RBC may offer a lower interest rate if you apply with a cosigner. 

How To Get Lower Monthly Payments For A RBC Car Loan? 

If you’re having trouble keeping up with your RBC car loan payments, you can refinance your car loan to lower your monthly payments by extending your loan term. However, if you’re unable to refinance your RBC car loan, RBC offers the following options: 

RBC Payment Extension

If you use your RBC car loan to finance a Personal Vehicle, rather than a Business Vehicle, you’re allowed to skip one monthly payment per year. This can change your amortization and payment schedule.

To skip an RBC car loan payment with online banking, follow these steps:

  1. Go to the “Accounts Summary” page and choose your Car Loan
  2. Select “Manage Your Loan”, then “Skip or Delay a Payment”
  3. Click on “Delay Your Payment”, then “Continue” 
  4. Pick one of the available dates highlighted on the calendar, then click “Continue” 
  5. Review the Disclosure, choose “Agree”, then verify your Confirmation page

To skip a car loan payment with RBC, you have to qualify for it. That means your credit score, finances and previous payments must all be in good standing when you apply. 

RBC Payment Deferral

Alternatively, you can defer or ‘delay’ your RBC car loan payment until the last business day before your next payment date, the loan’s maturity date or your interest renewal date (whichever occurs first). The deferral process is similar to skipping a payment:

  1. Log into your Online Banking account
  2. Choose your Car Loan from the Accounts Summary page 
  3. Click “Delay or Skip a Payment”, then “Delay Your Payment” and “Continue” 
  4. Select an available date and “Continue” 
  5. Agree to the Disclosure document and review your Confirmation 

Remember that interest will accrue on your delayed car payment until it’s paid in full. Also, you’re required to pay off the delayed payment before your next payment date.

What Is RBC’s Grace Period For A Car Loan?

When it comes to car loans, the grace period for missed payments varies from lender to lender. That said, most lenders will give you about 30 days to resolve the issue in an acceptable manner. 

What Happens When You Miss A RBC Car Loan Payment?

The consequences of missing a car loan payment depend on how late the payment is: 

  • Less Than 30 Days Late – Shortly after RBC deems your payment “late”, you’ll be contacted by their Auto Financing department to work out a solution. If your loan contract has a built-in grace period or you have a good reason for the late payment, they may forgo any penalties, once you pay whatever amount you owe. 
  • More Than 30 Days Late – After 30 days, RBC will report your late payment to Canada’s credit bureaus, which can lower your credit score. The more payments you miss, the worse the effect. If the loan is secured against your car and you keep avoiding payments, RBC may begin the vehicle repossession process. 

What Is RBC’s Repossession Policy?

Having a secured car loan means your vehicle will be used as collateral, which protects the lender if you default on your payments. If enough time goes by and they think you won’t pay up, they’re legally allowed to repossess and resell your car to recuperate their loss. Repossession gives RBC the right to tow the car from your home, workplace or on the street, without prior warning.

This normally becomes a risk after 60 to 90 days of consecutive missed payments. 

How To Voluntarily Surrender A RBC Financed Car?

If your car is due for repossession, it’s best to surrender it voluntarily and maintain your relationship with RBC. To voluntarily surrender your car, simply contact RBC to arrange a time and destination to drop it off at a designated spot. RBC may also send someone to your home to pick the car up. While you’re still responsible for the balance remaining on your car loan, this should at least help you avoid additional penalties, like towing fees, collection agencies and legal fines. 

RBC Car Refinance FAQs

Does pre-qualifying for auto refinancing hurt my credit score?

No, pre-qualifying for an RBC car loan won’t affect your credit score. Although it allows RBC to check your credit report, it will only lead to a soft inquiry, which has no impact.  

Can I refinance an RBC car loan with bad credit? 

It can be tough to qualify for any refinancing deal if you have bad credit. Like most banks, RBC needs to know you can pay your car loan, and may deny you if they think otherwise. If you’re looking to refinance your car loan with bad credit, an alternative lender may be your best choice. 

Does RBC report to the credit bureaus? 

Yes, RBC reports most of your credit activity to Equifax and TransUnion. 

Can I trade in a financed vehicle with RBC?

It depends if the car is still being financed. Generally, lenders won’t allow a trade-in when there’s debt left on the vehicle. As long as your car is paid off and has resale value, RBC may let you trade it in for a discount or down payment on your next one. 

Thinking About Refinancing Your RBC Car Loan?

Then make sure to contact the RBC Auto Financing Department ahead of time to ask questions and compare deals. Remember, financing and refinancing aren’t the same thing. You may have to pass different requirements to obtain a better loan.     

Bryan is a graduate of Dawson College and Concordia University. He has been writing for Loans Canada for five years, covering all things related to personal finance, and aims to pursue the craft of professional writing for many years to come. In his spare time, he maintains a passion for editing, writing screenplays, staying fit, and travelling the world in search of the coolest sights our planet has to offer.

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