When buying/financing a used car in Canada you can expect the interest rates to range from 3.9% – 34.99%. On the other hand, if you were looking to buy a brand new car then the interest rates can start as low as 0% with select manufactures. The two most important finance number to look for is your interest rate and the loan term. Your auto loan interest rate is by far the most important number to look at when comparing deals. For example, on a $10,000 loan with a 72 month term you will end up paying an extra $1,800 on the car for every 5% jump in the interest rate.
Your loan term is extremely important as well because the longer the term, the more interest you will pay. However, the higher your term goes the lower your payments will be because the principal of the loan is stretched out longer. It’s important when choosing a loan term to find a happy medium. You don’t want to end up paying too much interest, but at the same time you don’t want such a short term that the payments become too much of a financial burden.
Using our auto loan calculator will allow you to figure out what interest rate and loan term will best fit your budget. It’s important to play around with the interest rate to see the best case scenario and the worst case scenario because not everyone will be able to get that 3.99% used car rate.
What We Offer
At Car Deal Canada, we offer rates starting as low as 0% for new cars and 3.99% for used cars. However, for customer who don’t qualify for those rates we have special credit rebuilding programs to help get you into a car and get your credit on track to get those rates in the near future.
We can even get customers with Repossessions, Collections, Bankruptcy and Consumer Proposals approved. Above all, it’s our goal to get you approved and get the best possible deal. Our lenders currently only have two requirements.
1. Drivers Licence.
2. Income Over $1,800/Month.