CarsFast Car Loans
Interest rates from 4.9%
- Thousands of vehicles
- Multiple financing options
- Pre-approval in 60 seconds
- Vehicle delivery to your door
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According to Statistics Canada, the average car loan interest rate in Canada is 4.44%. The average buyer can expect to pay anywhere between 4% to 6% interest on their car loan, depending on whether the car is new or used and whether the interest rate is fixed or variable.
|Car loan company||Interest rate||Key features||Eligibility requirements|
CarsFast Car Loans
|4.90% to 29.90%||While CarsFast allows you to pre-qualify for loans from multiple lenders and compare your rates, one of its best features is that it gives you easy access to financing, even if you have bad credit.||Min. income of $1,800 /month, 3+ months employed||Go to siteRead Review|
Loans Canada Car Loans
|0% to 29.99%||Loans Canada Car Loans is not a direct lender, but instead sends your information to different lenders who try to woo you into a loan agreement. You get great rates because lenders have to compete for your business.||Min. income of $1,800 /month, 3+ months employed||Go to siteRead Review|
Car Loans Canada
|3.99% to 29.95%||Search thousands of vehicles online, including $0 down options, from dealers across the country and get matched with affordable financing options, even if you have bad credit, consumer proposals or bankruptcies.||Min. income of $2,000 /month, 3+ months employed||Go to siteRead review|
Canadian Auto News
|3.99% to 29.95%||Canadian Auto News is an online broker connecting you with lenders and dealerships that can provide you with the car you’re looking for and the auto financing to purchase it. With a quick online application, Canadian Auto News lets you compare the rates on offer from various lenders.||Min. income of $2,000 /month, 3+ months employed||Go to siteRead Review|
LoanConnect Car Loans
|9.90% to 46.96%||LoanConnect's search engine shows lenders with highest likeliness of positive results.||No min. income requirement||Go to siteRead Review|
Canada Auto Finance
|4.90%-29.95%||Canada Auto Finance is a free car loan matching service, connecting auto loan applicants with local dealers to help you secure auto financing, even for those with bad credit.||Min. income of $1,500 /month, 3+ months employed||Go to siteRead Review|
Carloans411 Car Loans
|1.90% to 19.99%||Carloans411 is an easy-to-use online platform that lets you get financing from a local dealership near you. All you need to do is fill in some basic personal information, and it matches you with a loan provider.||Min. income of $1,600 /month, 3+ months employed||Go to siteRead Review|
|6.99% average||Desjardins is one of the largest credit unions in Canada. You can use this loan to finance a new or used car, motorcycle, recreation vehicle, boat or RV. Choose between a fixed or variable rate. Loan amount starts at $5,000.||Not specified online||Learn more about credit union car loans|
Note: the information below is just an example and does not take into account all of the factors lenders consider when evaluating a loan application. Actual lenders may charge different interest rates.
The following example shows the amount of interest you could end up paying for a brand new $36,000 car assuming a loan term of 7 years and a down payment of $3,600.
|Credit rating||Credit Score||Interest Rate|
|Total interest paid|
|Poor||300-559||15% (there are some lenders that may approve a score under 560)||$715.52||$23,023.99|
Comparing car loan interest rates offered by different banks, credit unions and online lenders is critical to finding the deal that’s best for you.
Finding the best car loan rates in Canada involve doing research and comparing lenders. The following tips can help you find a low interest rate on your next car loan – and save you thousands of dollars in the long run.
A few different factors help lenders determine the car loan interest rates you’ll be offered. The more well-rounded your application, the better your chances of scoring a low rate. Although there are many factors that may play a role in your interest rate, these are the four main points lenders consider when reviewing your application:
You may see dealerships advertising 0% financing on their cars. With 0% financing, you buy the car at the agreed-on price, and then make monthly payments on the principal of the car with no interest for a set number of months. However, keep these points in mind:
The cost of your car loan will depend on your interest rate and loan term. Use the car loan monthly payment calculator to find out how your interest rate and the length of your loan term affect your monthly payments and total interest charged.
|Loan terms (in years)|
To get the best car loan rates in Canada, you’ll need to have an excellent credit score, a sufficient income that allows you to easily manage your loan repayments and a vehicle that is viewed favourably by lenders. Getting a low interest rate allows you to save money over the course of your car loan – and ultimately lowers the total price that you pay for your car.
If you already have a car loan with a high interest rate and think you could qualify for a lower one, you may want to consider auto refinancing.
Since July 2016, Canada has owed on average $2.8 billion per year in car loans, with lenders advancing $4.1 billion in July of 2020. Find out more about the state of car loans in Canada.
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If you want to make the most of your money, or just need advice on what financial product to get, a financial advisor can help.
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