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Roam vs Financing

Roam vs. financing a car: which is right for you?

Financing a car in Canada usually means a loan over 60 to 84 months at 5 to 7% APR. Once you add up the loan payment, insurance, maintenance, wear, and eventual repairs, a $28,000 compact runs $780 to $930 per month during the loan — about the same as a Roam Long-Term plan. What really separates the two options isn't the monthly number. It's the commitments and risks sitting around it.

Reviewed by the Roam team · Last updated April 22, 2026

Short answer

Roam: A month-to-month car subscription. You can drive any vehicle from the fleet for a few weeks or a few years. There's no loan, no impact on your credit score, and nothing added to your credit report. Maintenance is included in the monthly price. After your first 30 days you can cancel any time with 7 days' notice.

Financing: A multi-year loan to buy a specific vehicle, typically 60 to 84 months at 5 to 7% APR in Canada. You own the car once the loan is paid off. Getting approved requires a hard credit inquiry, and the loan shows up on your credit report for the entire term. Insurance, maintenance, and depreciation are all on you.

Financing is the right choice if you're planning to keep the car 7+ years, driving high annual mileage, and you want to own it at the end. Roam is the right choice for shorter horizons, for anyone who wants to avoid a loan on their credit report, and for one bundled monthly bill covering the vehicle, insurance, and maintenance.

At a glance

  • Commitment

    Roam

    30-day minimum. Cancel anytime after with 7 days' notice.

    Financing

    60–84 months typical (96-month loans exist). Early payoff usually allowed without penalty in Canada.

  • All-in monthly cash flow, compact sedan*

    Roam

    ~$791–$904/mo with HST — vehicle, Standard protection, maintenance, roadside.

    Financing

    ~$780–$928/mo during the loan term (loan payment, HST amortised, insurance, maintenance, wear, repairs, roadside). Similar to Roam on cash flow.

  • What you also absorb with financing

    Roam

    N/A — no asset, no depreciation risk.

    Financing

    ~$180–$200/mo in silent depreciation (resale value lost), realised when you sell. A $28K compact is worth about $14,000 after 5 years and about $11,000–$12,000 after 7.

  • Credit check

    Roam

    Soft check at approval. No impact on your credit score.

    Financing

    Hard credit inquiry. The loan is reported to the credit bureaus as a debt obligation — which can affect mortgage qualification.

  • Upfront payment

    Roam

    Refundable security deposit. Optional enrollment fee lowers monthly cost.

    Financing

    HST on the vehicle purchase ($3,640 on a $28,000 compact). Down payment often $0–$5,000 depending on the lender.

  • Ownership at end

    Roam

    Return the car. No asset, no residual.

    Financing

    You own the car. Equity builds as you pay down the loan. Keep driving, sell, or trade.

  • Insurance

    Roam

    Choose from protection plans provided by Roam at checkout.

    Financing

    Your personal auto policy, arranged through a broker. Lenders typically require collision and comprehensive while the loan is active.

  • Routine maintenance

    Roam

    Included in the plan price.

    Financing

    Often free for 1–2 years through a manufacturer program (Toyota Care, Honda's Maintenance Minder-backed program, etc.), then on you.

  • Out-of-warranty repairs

    Roam

    Covered by Roam's fleet maintenance.

    Financing

    Your responsibility once the manufacturer warranty expires — typically 3–5 years / 60,000–100,000 km depending on the brand (Toyota/Honda/Mazda 3yr/60k; Hyundai/Kia 5yr/100k). Repair costs rise with vehicle age.

  • Mileage

    Roam

    Customizable allowance from 2,000–3,000 km/month. Per-km overage at return.

    Financing

    Unlimited. Drive as much as you want — the only cost is wear and faster depreciation.

  • Early exit

    Roam

    No fee after your first 30 days. Return with 7 days' notice.

    Financing

    Pay off the remaining loan, sell, or trade. If the loan balance exceeds the sale price, you pay the difference (negative equity).

  • Depreciation risk

    Roam

    Roam absorbs it. Your monthly price doesn't change as the fleet ages.

    Financing

    You absorb all of it. A new compact typically drops about 20% in year one and about 50% by year five.

  • End of loan

    Roam

    Return the car. Inspection for excessive wear only.

    Financing

    Car is yours free and clear. No inspection, no residual buy-out, no transfer fee.

Total cost of ownership

The real all-in monthly cost

The headline numbers look like a big gap: a Roam entry-level plan is $450 to $550 per month plus Standard protection, while an 84-month auto loan on a $28,000 compact at 7% APR is about $423 per month. The problem is that a lender's monthly payment leaves out everything else you'll actually spend on the car — insurance, maintenance, eventual repairs, wear items, and roadside. Once those are added in, financing comes to $778 to $928 per month during the loan term, essentially the same as a Roam Long-Term plan. The real decision isn't the monthly number. It's about what sits around it: the length of the commitment, the credit-report implications, and how much depreciation you're willing to absorb.

Compact sedan ($28,000 all-in), Ontario, 84-month loan at 7% APR

  • Monthly vehicle / loan payment

    Roam

    $450–$550 (entry-level Long-Term plan)

    Financing

    ~$423 (7% APR, 84 months, $28,000 all-in purchase)

  • HST

    Roam

    ~$91–$104 on the monthly plan

    Financing

    ~$43 (one-time $3,640 on purchase, amortised over 84 months)

  • Insurance

    Roam

    ~$250/mo — Standard protection plan

    Financing

    $150–$300/mo — personal auto policy*

  • Routine maintenance

    Roam

    Included

    Financing

    ~$60/mo after the manufacturer's 1–2 year program

  • Wear items (tires, brakes, wipers, battery)

    Roam

    Covered by Roam's fleet maintenance

    Financing

    ~$40/mo amortised

  • Out-of-warranty repairs

    Roam

    Covered by Roam's fleet maintenance

    Financing

    ~$50/mo amortised over 84 months (rising in years 4+)

  • Roadside assistance

    Roam

    Included; level varies by plan

    Financing

    ~$12/mo (CAA) or bundled in your auto policy

  • Typical all-in monthly cash flow during the loan

    Roam

    ~$791–$904

    Financing

    ~$778–$928

*Ontario auto insurance premiums vary by more than 4x across driver profiles. Depreciation isn't a monthly cash expense, so it's not included in the total above — but it's still real money. A $28,000 new compact is worth about $14,000 after 5 years and $11,000 to $12,000 after 7. That gap (roughly $180 to $200 per month over 7 years) comes out of your pocket when you eventually sell. If you drive the car 10+ years until it's scrap, you realise the depreciation as the vehicle's scrap value instead. Either way, the money is gone.

The honest takeaway

On monthly cash flow during the loan term, Roam and financing come out essentially the same — both land in the $780 to $930 range for a compact sedan. The real differences live outside that monthly number: silent depreciation, a hit to your credit report, a 7-year commitment, and the risk of surprise repair bills after the warranty ends. All of those sit on the financing side. Three situations tilt the decision clearly one way or the other.
  • You keep the car 8+ years. Once month 84 arrives and the loan is paid off, your monthly cost drops dramatically. You're left with insurance, maintenance, and slowing depreciation — maybe $300 to $450 per month. Spread that over a full 10 years of ownership and financing comes out well below a Roam plan on total cost. This is the scenario where financing wins clearly.
  • You sell before the loan is paid off. A new compact loses about 20% of its value in the first year and around 50% by year five. The loan amortises on a flat schedule, so the car's value drops faster than the loan balance. On 84- and 96-month loans especially, that leaves you with negative equity — the loan balance is higher than what the car would sell for. Selling means paying the gap out of your own pocket, which can wipe out years of savings. A Roam plan has no loan to settle if your plans change.
  • You drive well above the typical cap. Roam plans include 2,000 to 3,000 km per month, with a per-kilometre charge on anything over that at return. A financed car has no cap at all — extra kilometres just translate into faster depreciation and more wear, which you're already absorbing as the owner. For drivers who put more than 30,000 km on a car each year, financing is almost always the better economics.

Pricing is illustrative. Loan examples use a $28,000 compact-sedan purchase at 7% APR over 84 months — a midpoint profile for an average-credit Canadian buyer in 2026. Your rate varies by credit score, down payment, vehicle, and lender. Depreciation ranges are based on published Canadian resale-value data for compact sedans. For current Roam plan pricing, see our inventory.

Which fits you

When each option is the better choice

When Roam is the better choice

  • You don't want a loan on your credit report

    If you're applying for a mortgage or keeping a close eye on your debt-to-income ratio, a Roam plan doesn't affect either one — it doesn't appear on your credit report at all. An auto loan is reported as a debt obligation and can affect your ability to qualify for other borrowing.

  • You're new to Canada

    Auto lenders typically want established Canadian credit history and a stable income record, which can be hard to provide in your first year or two. Roam runs a soft credit check that doesn't affect your score and doesn't show up on your credit report.

  • You don't want to absorb depreciation

    A new compact loses roughly 20% of its value in the first year alone, and about 50% over five years. On Roam, that depreciation is ours to handle — your monthly price doesn't change as the fleet ages.

  • Your horizon is a few weeks to a few years

    If you're between cars, relocating, or about to go through a major life change, Roam's month-to-month structure means no negative-equity risk. Selling a car two years into an 84-month loan usually means paying the difference out of your own pocket.

  • You want one monthly bill, not four

    With Roam, the vehicle, maintenance, roadside, and the required protection plan are all on one invoice. With financing, you're juggling a loan, a separate insurance policy, a service schedule, and a tire budget.

  • You want a car fast

    Roam pickup is often same-day or next-day in the GTA or Ottawa. Auto loan approval and the dealer paperwork that follows typically takes several days to a week.

  • You want to try a vehicle before committing

    A few months on a Roam Long-Term plan lets you try the car out before you commit to a 7-year loan. Buying first and deciding later is an expensive way to find out a car doesn't fit your life.

When Financing is the better choice

  • You're keeping the car 8+ years

    Once the loan is paid off in year 7, your monthly costs drop to just insurance, maintenance, and slowing depreciation. Over a long horizon, financing comes out ahead on total cost.

  • You drive 30,000+ km a year

    Financing has no mileage caps and no overage fees. Extra kilometres translate to faster depreciation and more wear — but you're already absorbing both as the owner.

  • You want full ownership and control

    The car is yours to modify — change the paint, fit aftermarket wheels, add a tow package, whatever you want.

  • You want an asset that builds equity

    Each loan payment chips away at the principal. Over time you own more and more of the car, and that equity becomes a down payment on whatever you buy next.

  • You qualify for a manufacturer-subsidised rate

    Manufacturer promotions on specific models can run well below the typical 5 to 7% market rate. WOWA's latest survey lists promotional rates as low as 1.99% at 60 months on select brands, though these rotate regularly — verify directly with the dealer.

  • You prefer to arrange insurance, maintenance, and tires yourself

    Some drivers prefer to unbundle the costs and optimise each line separately — shopping insurance, booking maintenance, and buying tires on their own terms. Ownership lets you do that.

  • You're confident in your 7+ year plan

    If you already know the car you want, the kilometres you'll drive, and you're confident you won't need an early exit, a long commitment is a fine match for how a loan is structured.

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How it works

Hassle-free and fast, from start to finish

  1. Book your vehicle online

    Browse our plans and book your vehicle online in minutes.

  2. Pickup or delivery

    Pick up your vehicle from one of Roam's service locations or use optional valet delivery.

  3. Drive as long as you like

    No long-term contracts. Pay as you go for as long as you need — cancel anytime after your minimum term.

  4. Make changes on the go

    Add drivers, extend your dates, or schedule a return from your Roam dashboard.

Contact Us

Let's talk

Questions about Roam and our services? Our friendly team is standing by to help. We'd love to hear from you.

Phone

1-647-560-5638

Email

inquiries@roam.auto

Business Hours

Mon–Fri, 9am–6pm

Questions

Frequently asked questions: Roam vs. financing

On the headline loan payment, yes — an 84-month loan payment on a $28,000 compact at 7% APR is about $423 per month, which is lower than the $700 to $800 for vehicle plus protection on a Roam Long-Term plan. But once you add up everything else — HST, insurance, maintenance, wear, repairs, and roadside — the two come out essentially tied at $780 to $930 per month during the loan term. Financing also carries about $180 to $200 per month in silent depreciation on top of that, which you only feel when you sell. Financing wins on long horizons (8+ years of ownership), high annual mileage, and for drivers who qualify for promotional interest rates. Roam wins on shorter horizons, no credit-score impact, and simpler monthly bookkeeping.

Negative equity means the loan balance is higher than what the car would sell for — you owe more than the car is worth. It's especially common on 84- and 96-month loans because cars lose value faster than the loan amortises. If you need to sell or trade in early, you pay the difference out of pocket, which can wipe out years of monthly savings. A Roam plan has no loan and no resale obligation.

Roam runs a soft credit check at approval. It doesn't affect your credit score and doesn't show up on your credit report. A car loan, by contrast, requires a hard credit inquiry and is reported to the credit bureaus as a debt obligation — both of which can affect mortgage qualification and other borrowing.

60, 72, and 84 months are all common terms, and 96-month loans exist too. Longer terms have become much more popular over the last decade. The Financial Consumer Agency of Canada specifically warns that longer terms increase the chance of owing more on the loan than the car is worth. Stretching the loan lowers your monthly payment, but it also means paying more in total interest over the life of the loan.

HST on a new-car purchase in Ontario is 13% of the vehicle price, paid at the dealership up front — or rolled into the loan if you're financing. On a $28,000 compact, that's $3,640, or about $43 per month once it's amortised over an 84-month loan. With a Roam plan you pay HST monthly on the plan cost, not up front.

Yes. Long-Term plans are month-to-month, so after your first 30 days you can return the current car and start a new plan on a different vehicle in the fleet, subject to availability. Switching cars during an auto loan means paying off the loan (or getting lender approval to transfer it), selling the car, and buying the next one — usually with fresh tax, fees, and the risk of negative equity carrying into the next loan.

Related comparisons

Also comparing Roam to something else?

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Why drivers choose Roam

Skip the loan paperwork and the depreciation risk

No 84-month commitment. No hard credit inquiry. No residual-value worries. A Roam Long-Term plan puts you in a new or near-new vehicle with month-to-month flexibility, and you can cancel any time after your first 30 days.

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Methodology

Methodology, calculations, and sources

We show our work so you can check it. If anything here looks wrong or out of date, let us know and we’ll update it.

How we got the numbers

  1. Monthly loan payment (compact sedan, $28,000 at 7% APR, 84 months)

    P × r × (1+r)^n ÷ ((1+r)^n − 1), where P = $28,000, r = 0.07/12, n = 84=≈ $423/mo

    Standard loan amortisation formula. Rate assumption: WOWA reports the average Canadian new-car loan rate was 6.5% in October 2025, with typical rates of 5–7% for borrowers with good credit. Your actual rate varies by credit score, down payment, and lender.

  2. HST on the purchase, amortised over the loan

    13% × $28,000 ÷ 84 months=$3,640 ÷ 84 ≈ $43/mo

    Ontario HST is 13%. If HST is financed into the loan, it amortises alongside the principal. If paid cash at the dealership, it's a one-time $3,640 upfront cost.

  3. Cash flow during the loan term (range)

    $423 (loan) + $43 (HST) + $150–$300 (insurance) + ~$60 (maintenance after the manufacturer program) + $40 (wear) + $50 (out-of-warranty repairs, blended) + $12 (roadside)=≈ $778–$928/mo

    These values are steady-state during years 3–7 of ownership. Years 1–2 are cheaper (manufacturer maintenance program is typically free; out-of-warranty repairs haven't kicked in) — the blended 7-year average is ~$800/mo. Roam's all-in on a comparable vehicle is ~$791–$904/mo, so cash flow is a tie.

  4. Depreciation you also absorb (non-cash, realised on sale)

    $28,000 × (roughly 50% by year 5, roughly 55–60% by year 7) ÷ months of ownership=≈ $180–$200/mo

    Compact sedan resale values based on published Canadian resale data — a $28,000 new compact is worth about $14,000 at year 5 and about $11,000–$12,000 at year 7. This doesn't leave your bank account monthly, but it shows up as the gap between what you paid and what the car sells for.

  5. 7-year economic cost of financing (net of resale)

    (Cash flow × 84) − resale value at year 7=≈ $56,000–$67,000 total, or $667–$797/mo equivalent

    This is the true 'what did the car cost me' view: total cash paid minus what you get back on sale. Compared to Roam at $791–$904/mo × 84 = $66,444–$75,936 over the same 7 years, financing's 7-year economic cost lands below Roam by $5,000–$15,000 depending on your insurance, rate, and repair experience. Keep the car 10+ years and the gap widens further.

Sources and further reading

Last updated April 22, 2026. Auto loan rates, vehicle prices, and resale values change. Verify current numbers before making a purchase decision. For current Roam pricing, visit our inventory.