Taxis are expensive and not everyone is able to travel by foot, bike or public transit. So, in many parts of Canada, having a reliable car is simply a necessity. The only problem is that some cars are very pricey to buy, fuel, repair and maintain, especially in times of financial hardship. That situation may get worse if you’re financing your car with a loan.
When you miss car payments, you could receive all sorts of penalties, like late fees, added interest and even vehicle repossession. Luckily, there may be a few things you can do to avoid that stress if your car loan is with one of the big banks like The Royal Bank of Canada (RBC).
What Happens If You Miss A Car Loan Payment With RBC?
If you miss a car payment as an RBC client, several things can occur depending on how many days your payment is overdue.
RBC Car Loan Payments That Are Less Than 30 Days Late
In general, when you’re less than 30 days late on your RBC car loan payment, you may experience the following:
- Notifications – RBC will likely send you emails and letters reminding you to pay your car loan and deal with any missed payments to prevent any penalties.
- Late Charges – Depending on your car loan contract you may have a grace period that allows you to pay your bill after the due date without being hit with a late fee. However, if you don’t have one or your past your grace period, your RBC missed car payment will likely result in penalties such as late fees and extra interest, all of which will be added to your final debt.
RBC Car Loan Payments That Are More Than 30 Days Late
If your RBC car loan payment is more than 30 days late, you’ll experience more severe consequences, such as:
- Credit Damage – Next, RBC will report your missed payment to Canada’s credit bureaus (Equifax/TransUnion), which could affect your credit scores and ratings.
- Legal Actions – If you continue to miss payments, RBC might take serious legal actions, like repossessing your car or suing you for the remaining loan balance.
What Car Loan Payment Relief Options Does RBC Offer?
If you’ve been a responsible RBC client and are currently experiencing some financial difficulties, contact RBC right away and notify them of your situation. They may be able to provide you with a payment solution, such as:
Skip A Car Loan Payment With RBC
If you have an RBC Personal Vehicle Loan (not a Business Vehicle Loan), you can skip one monthly payment or up to one month of consecutive non-monthly payments in a single session per year. Watch out, because your amortization schedule and payments could change because of this. Plus, interest will continue to accumulate on the loan.
How To Skip A Car Loan Payment At RBC
To delay a car payment with RBC, follow these easy steps:
- Log into (or create) your RBC online banking account. Make sure to have a good password and monitor your account regularly for suspicious activity.
- Next, go to the “Accounts Summary” page and pick the loan account you’d like to manage. You’ll then be directed to the “Account Details” page.
- From “Account Details”, under “Manage Your Loan”, click “Delay Or Skip Your Payment” and choose an available date from those highlighted on the calendar.
- Read the Disclosure form carefully and select “I Agree” to finalize the process. Don’t forget to look over your confirmation page and email notice.
Delay A Car Loan Payment With RBC
As an RBC member with a Personal Loan, you’re also allowed to delay your car loan payment until the next payment date, the loan’s maturity date or your interest renewal date (whichever comes first). Similar to a skipped loan payment, any interest or Loan Protector insurance premiums (optional) will accrue on your loan until it’s paid in full.
How To Delay A Car Loan Payment At RBC
If you wish to delay an RBC car payment, just take these steps:
- Head to the “Accounts Summary” page and select your car loan.
- Click “Account Details”, “Manage Your Loan”, then “Delay or Skip Your Payment”.
- Choose an available date from the calendar that appears, then click “Continue”.
- Agree to the conditions of your Disclosure form and confirm the transaction.
Can You Change Your RBC Car Loan Payment Frequency?
With an RBC car loan, you have the option of making monthly, semi-monthly, bi-weekly or weekly payments. If it becomes difficult to afford your initial plan, you can talk to an RBC customer representative about switching payment frequencies too. Just remember that doing this could change your interest rate, term length and payment amounts.
RBC Contact Information
| Phone | 1-800-769-2511 |
| RBC Online Banking | Sign In |
Can You Refinance Your Car Loan With RBC?
RBC may let you refinance your car loan using your existing account or one you’re transferring from another lender. If you have the right criteria, they’ll buy your remaining debt and give you a new contract (hopefully with more ideal conditions). This could lead to a lower interest rate or longer term but both will decrease the size of your payments.
Keep in mind that refinancing your car loan may only be an effective choice if you have a healthy credit score (about 660 – 900). Some experts recommend waiting until you’ve at least made your first car payment before refinancing. You can use a car loan calculator to better asses how much car you can afford based on various loan terms.
Want To Lower Your Car Payments?
Speak with a Loans Canada representative today and learn how you can refinance your car loan and save. Call us today at 1-877-995-6269 or click here.
Note: Program is currently not offered in Quebec.
Benefits Of RBC Car Financing
Here are some features that make RBC car loans stand out:
- Flexible Terms & Payment Plans – RBC works with over 4,500 partner dealers that offer customizable car loans. Monthly, semi-monthly, weekly and bi-weekly plans are available for terms of 1 – 8 years, on cars that are up to 10 years old.
- No Prepayment Penalties – If you make an earlier or larger payment, the payment will go entirely towards the principal, saving you on interest. You can even pay your entire loan off early, as long as you meet all the other conditions of your contract.
- Fixed & Variable Interest Rates – RBC offers special competitive rates through their partner manufacturers. Fixed rates can be higher but won’t change during your loan term, whereas variable rates will fluctuate with Canada’s prime rate.
- Skip Or Delay A Payment – If you’re struggling to keep up with your RBC car loan payments, you may skip the equivalent of one monthly payment, every year, penalty-free. You can also delay your car loan payment until the loan’s maturity, interest renewal or next payment date (whichever comes first).
RBC Car Financing Overview
Before you get an RBC car loan, be sure to compare all their available car financing programs:
| Specific Requirements | Interest Rates | Loan Terms | Financing Available | Payment Options | |
| RBC Car Loans Through A Dealer | Cars must be 10 years old or younger. | Fixed or variable rates | 1-8 years | Min $7,500 | MonthlySemi-MonthlyWeeklyBi-Weekly |
| Loans For Electric Vehicles | Must finance an eligible vehicle | Special rates from partner dealerships | Up to 8 Years (96 months) | None Specified | MonthlySemi-MonthlyWeeklyBi-Weekly |
| Newcomer Automotive Loan Program | New to Canada within the last 3 years No Canadian credit history required | Depends on the applicant’s finances | Up to 8 Years (96 months) on vehicles up to 10 years old | Up to $75,000 | Flexible |
| Financing For Your Boat/RV | Must finance an eligible vehicle | Competitive | Up to 20 years (240 months) on vehicles up to 10 years old | None Specified | MonthlySemi-MonthlyWeeklyBi-Weekly |
| Business Vehicle Solutions | Must own an eligible new or major business | Special rates on single or multiple vehicles | Up to 7 years (84 Months) | None Specified | MonthlySemi-MonthlyWeeklyBi-Weekly |
How Do You Apply For An RBC Car Loan?
Applying for a car loan through RBC is relatively simple. All you need to do is:
- Complete RBC’s pre-qualification process online before you go car shopping.
- Visit an RBC partner dealership, then compare and test-drive a variety of cars.
- Ask the dealer about their promotions, trade-in program and other options.
- Apply for RBC auto financing on-site and buy your car if you qualify for a loan.
RBC Car Loan FAQs
Can I finance a used car with RBC?
Can I get an RBC car loan as a newcomer to Canada?
Can I make additional payments to my RBC car loan?
Can I get an RBC car loan with bad credit?
- A solid income & employment history
- A down payment of at least 10% – 20%
- A co-signer or guarantor with a better credit score
- An asset to secure the loan (the car may act as collateral)
Are You An RBC Member With A Car Payment Plan?
While there are several basic solutions you can try, it’s never really a good idea to miss a car payment. So, if you think you might default on your car loan soon, don’t hesitate to contact RBC and discuss your situation with a financial expert. Whether you need to skip or delay a car payment, RBC can help you avoid any unnecessary car loan drama.
