Follow Us

arrow-menu

Standard Interest Rate For Car Loans

If you’re planning to buy a new car, you may be wondering how much interest you will have to pay on your auto loan. The answer to this question will depend on a number of factors, including the age of the car you’re buying, the length of the loan you’re applying for, and whether or not you have bad credit.

While car loan interest rates vary from lender to lender, they are usually tied to the loan repayment period and your credit score. This means that if you have bad credit, you’ll likely pay more interest on a car loan than someone with better credit.

In this article, we’ll take a look at the standard interest rate you can expect to pay on a car loan, so you can make an informed decision about which loan to apply for.

Read more

Written by: Pig Daddy

content table close

Table of Contents

Share this article:

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%.

APPLY NOW

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).

APPLY NOW

CIBC

CIBC is another bank in Canada that offers car loans of up to $100,000. Their interest rate ranges between 4% to 8%.

APPLY NOW

Frequently asked questions

How do you calculate car loan interest rates?

The best way to know how much interest you’ll have to pay on a car loan is to directly contact the bank or lender of your choice and request a quote. Alternatively, you can also use online auto loan calculators to give you a rough estimate of what you can expect to pay. Most banks and online lenders have car loan calculators on their websites for your convenience.

How can you get a good car loan interest rate?

There are a number of ways to get a better interest rate on your auto loan. First, improve your credit score before applying for a loan. The higher your credit score is, the lower your interest rate will be. Second, save up for a bigger down payment. You can negotiate a lower interest rate if you put more money down. Finally, you can apply for a loan with a shorter repayment period. Even though your monthly payments will be higher, it will save you more money in the long run.

How to negotiate for a better car loan interest rate?

Most lenders are open to negotiation, especially if you have a good credit score. If you can show them that you are a responsible borrower, they may lower your interest rate. On the other hand, if your credit score is less than stellar, you can still try to talk with the lender and try explaining your financial situation, but don’t be surprised if you don’t get a better 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.

Pig Daddy

Share this article: