Car Loan Interest Rate in Canada?
If you’re in the market for a new or used car, it’s likely that you’ll need to secure some financing for your purchase. When applying for a loan, you’ll find that the interest rate is an important factor in determining exactly how much the loan will cost you. The interest rate identifies how much extra money you will be paying back in addition to the principal. Interest rates vary, and to get a competitive rate, you will need to have a strong financial status – capital, income, and credit rating. Let’s take a look at car loan interest rates in Canada.
Average Car Loan Interest Rates In Canada
The average car loan rate for Canadians is around 5% to 6% . However, it’s important to remember that this average number does not necessarily mean you will have this rate. Depending on someone’s financial situation, car loan interest rates can be significantly higher.