Standard Car Loan Interest Rate in Canada
In Canada, the standard car loan interest rate is usually between 4.5% to 10% depending on the bank or lending company. However, it is still up to the lender’s discretion as to how much they will charge you for the loan. Lenders will take a look at your credit score, income, down payment, credit history, loan repayment history, and credit utilization to determine the amount of interest you’ll have to pay.
Canadian Lenders that Offer Standard Interest Rates on Their Auto Loans
Nowadays, banks, credit unions, online lenders, and auto dealerships are competing to offer the lowest interest rates on auto loans. This means that you’ll have a variety of options to choose from.
Here are some of the most popular Canadian banks and lenders that offer standard interest rates on their car loans:
Canada Auto Finance
Canada Auto Finance is one of the leading online car loan providers that offer auto loans of up to $45,000. Their annual percentage rate starts at 4.90%.
BMO
BMO is a Canadian bank that offers auto loans with a minimum borrowed amount of $7,500. Their standard car loan interest rates are between 6% and 8% (APR).
CIBC
CIBC is another bank in Canada that offers car loans of up to $100,000. Their interest rate ranges between 4% to 8%.
Frequently asked questions
How do you calculate car loan interest rates?
How can you get a good car loan interest rate?
How to negotiate for a better car loan interest rate?
Conclusion
A good car loan interest rate is one of the key factors to consider when choosing an auto loan. Depending on your credit score, your down payment, and the amount that you are planning to borrow, you can expect to pay between 4.5% to 10% APR on a standard car loan. However, the interest rate you’ll have to pay will vary from lender to lender, so it is important to talk to the lender or online auto loan provider of your choice to get a better idea of how much you can expect to pay before you sign the loan agreement.