BMO Bank Auto Loans

BMO Bank finances both new and used vehicles through direct auto loans and indirect financing at participating dealerships. The bank's auto lending operation is not as heavily marketed as its mortgage or checking products, but it offers competitive rates for customers with solid credit and a straightforward application process that can be completed online, by phone, or through a dealer. Loan terms typically stretch from 36 to 72 months, with longer terms available for new cars and shorter terms for older used vehicles.

BMO Auto Loan

BMO auto loans are simple installment products: fixed rate, fixed monthly payment, no surprises. The bank finances cars, trucks, SUVs, and motorcycles, though terms and rates vary by vehicle type and age. New car loans usually carry the lowest rates, while used car loans step up slightly depending on the model year and mileage. BMO does not finance salvage-title vehicles or cars older than a certain age, typically around 10 model years, though exceptions are made on a case-by-case basis.

Rates and Terms

APR depends heavily on credit score, loan-to-value ratio, and term length. Buyers with scores above 720 often see rates starting in the mid-single digits on new cars, while scores in the mid-600s may land in the low teens. Loan terms of 60 months are the most common, though 72-month terms are available for new vehicles and buyers who want lower monthly payments. The tradeoff with a longer term is more interest paid over the life of the loan, which buyers should weigh against the monthly budget relief.

How to Apply for a BMO Auto Loan

Buyers have two paths: direct through BMO's website or a branch, or indirect through a dealership that partners with BMO. The direct route gives the buyer more control over the rate and terms, since they can shop the loan before negotiating the car price. The indirect route is faster at the dealership but may come with a slightly higher rate because the dealer adds a markup. Pre-approval through BMO's online application takes a few minutes and gives the buyer a firm budget before they set foot on a lot.

Required Documentation

BMO asks for proof of income, proof of insurance, and vehicle identification information (VIN, purchase agreement, or dealer invoice). For private-party purchases, the bank also requires a bill of sale and may order a vehicle history report. Self-employed borrowers need two years of tax returns or bank statements to verify income stability. Once approved, BMO sends the funds directly to the dealer or private seller, and the buyer starts making payments roughly 30 days later.

Auto Loan Refinancing

Customers who already have a car loan elsewhere can refinance through BMO to lower their rate or adjust their term. The process is similar to a new purchase loan, though no down payment is required since the car is already owned. BMO pays off the old lender and issues a new loan with updated terms. Refinancing makes the most sense when rates have dropped since the original purchase or when the borrower's credit score has improved significantly.