The national averages for Canadian auto loan interest rates are between 4.5% to 10% on a car loan. A few factors are involved depending on credit score, whether the car is new or used, the history of the car being financed and whether the interest rate is fixed or variable.
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 (hypothetical) | Monthly payment | Total interest paid |
|---|---|---|---|---|
| Excellent | 800-900 | 3.49% | $498.18 | $4,767.19 |
| Very good | 720-799 | 3.99% | $506.67 | $5,480.17 |
| Good | 650-719 | 4.5% | $515.42 | $6,215.11 |
| Fair | 600-649 | 10% | $615.57 | $14,628.04 |
| Poor | 300-599 | 15% | $715.52 | $23,023.99 |
Note: the information above 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.
