Automotive

Days of super low interest rates over?

  • Last Updated:
  • Mar 7th, 2019 5:10 pm
[OP]
Deal Addict
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Jul 27, 2004
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Days of super low interest rates over?

I'm currently in the market for a new vehicle. Looking at the various CUVs (CX-5, CR-V, Rav4, Tucson etc). I've noticed that the days of 0% 7 year loans seem to be over?

Is this the new normal, or is it simply a bad time for finance rates?
38 replies
Deal Expert
Aug 22, 2011
27998 posts
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Ottawa
Sure, 0% but no discounts!
Deal Fanatic
Feb 15, 2006
8191 posts
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Toronto
Bank of Canada has been raising the interest rate, 5 times in the last couple of years. So the super low interest rates of the last decade came to an end.
Deal Expert
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Jul 30, 2007
23580 posts
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Toronto
I would not say never ....

If dealers are sitting on a huge inventories across Canada, I am sure the brand manuf. would do some huge sell offs, in the form of low interest and/or huge cash credit to move them. For the majority of brands now, the 2019 have only been selling for a few months, ask the same questions come late summer - late fall.
Deal Guru
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Oct 6, 2010
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See it all the time, plastered all over dealer windows. Once you get inside, different game altogether. But it is available.
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Deal Addict
Sep 1, 2004
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So the clowns running our government right now is putting short term pain to $CAD. So BoC may have to raise rate to save it.

But yeah, I have not seen 0% Corollas since 2015. I think now it's 0.5%
Deal Expert
Feb 29, 2008
21860 posts
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Montreal
etherboy wrote:
Mar 5th, 2019 12:29 pm
I'm currently in the market for a new vehicle. Looking at the various CUVs (CX-5, CR-V, Rav4, Tucson etc). I've noticed that the days of 0% 7 year loans seem to be over?

Is this the new normal, or is it simply a bad time for finance rates?
SUVs are in demand, so high rates. Look at something like a mid sized (mazda 6, Camry, Malibu) and the rates should be better.

Plus the RAV4 and CRV are hot off redesign cycles, so there is no need to discount to push metal.
Penalty Box
Apr 5, 2013
3767 posts
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markham
Xtrema wrote:
Mar 5th, 2019 1:52 pm
So the clowns running our government right now is putting short term pain to $CAD. So BoC may have to raise rate to save it.

But yeah, I have not seen 0% Corollas since 2015. I think now it's 0.5%
ya thats the reason...study the economy and figure out what our safe rate should be...or maybe you want a zero percent rate to benefit your self in the short term at the expense of the country in long term...ask Japan how thats worked out for them in the last 40 years...or maybe let the dollar drop to 50 cents so all the foreigners can scoop everything Canadian at pennys on the dollar while everyone investments become worthless...not to mention hyperinflation setting in...anything else "intelligent" to say?
Deal Addict
Mar 30, 2010
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GTA
Interest rates follow a cyclical pattern. They are currently in the process of rising after plateauing at historic lows.
[OP]
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Jul 27, 2004
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mr_raider wrote:
Mar 5th, 2019 2:05 pm
SUVs are in demand, so high rates. Look at something like a mid sized (mazda 6, Camry, Malibu) and the rates should be better.

Plus the RAV4 and CRV are hot off redesign cycles, so there is no need to discount to push metal.
Makes sense, thanks.
Deal Addict
Jan 8, 2007
2288 posts
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Calgary
2018 Tucson has 0% financing for 7 years, 2018 Tiguan is 0% for 6 years I believe.
Deal Expert
Feb 29, 2008
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aleks wrote:
Mar 5th, 2019 3:54 pm
2018 Tucson has 0% financing for 7 years, 2018 Tiguan is 0% for 6 years I believe.
RAV4 was 1.2 or 0.9 last year before the redesign I recall.

Cx-5 has a cash incentive now, since its a fairly old model.
Deal Addict
Oct 6, 2015
1930 posts
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"0%" was never a real interest rate, it was a highly subsidized interest rate in lieu of substantial cash discounts given by the vehicle dealers.

Given the global glut of cars, extreme discounting is likely to continue.

But don't think for a second that you're actually getting "0% financing".
Deal Addict
Mar 30, 2010
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GTA
burnt69 wrote:
Mar 6th, 2019 4:46 am
But don't think for a second that you're actually getting "0% financing".
You mean, at some point, one way or another, you're paying the interest rate?
Member
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Jun 23, 2005
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Hamilton
mr_raider wrote:
Mar 5th, 2019 4:02 pm
RAV4 was 1.2 or 0.9 last year before the redesign I recall.
My wife's Rav4 hybrid was 0.99% over a 5 year finance term.
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