Car Loan Calculator

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.