The average car loan interest rate in Canada for new loans is 5.23%. However, rates can vary widely depending on the lender, your financial situation, and the type of car.
What is a good interest rate on a car loan in Canada?
A good interest rate on a car loan in Canada will be below the national average rate of 7.21%. If you have good credit, new car loan rates are typically 0% - 6.5% depending on the brand, while used car loan rates in Canada are 6.5% - 9%.
Is 3% interest rate good for a car?
According to Middletown Honda, depending on your credit score, good car loan interest rates can range anywhere from 3 percent to almost 14 percent. However, most three-year car loans for someone with an average to above-average credit score come with a roughly 3 percent to 4.5 percent interest rate.
Is a 6% interest rate good for a car loan?
Overall, the average interest rate on a 60-month car loan as of September 2021 is 3.81%. So, a 6% interest rate is high by comparison—especially since your credit score is 700.