Automotive

typical interest rates for used car financing?

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Jul 28, 2008
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typical interest rates for used car financing?

I have excellent credit, and good income. What are approximate rates I should expect to get if arranging financing through a used car dealer? Is it generally better to go straight to a bank, or go through the dealer? thanks for any help. I'm car shopping this weekend, and it's sort of a sudden development, so I haven't had much time to prepare.
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Aug 21, 2009
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Depends on length of financing (e.g. 2-5 years). 4-8%.
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Apr 12, 2007
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Mazda of Toronto
unless you are buying a CPO vehicle.. often the interest rates are subvened by the manufacturer.

Currently Mazda is offering:

12 - 0.9%
24 - 0.9%
36 - 1.9%
48 - 2.9%
60 - 3.9%
72 - 3.9%
< The original ASK ME ANYTHING ABOUT BUYING A NEW MAZDA >

Serving the RFD membership base with Mazda's current incentives and promotions since 2007!

Edited by the RFD Moderation Team
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Thanks, that helps.
It's a used car, so I don't think manufacturer's rates apply
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Dec 21, 2009
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maybe a line of credit would work better for you? those interest rates someone posted above are a bit high. I believe a line of credit would leave you with higher monthly payments, but at a much lower interest rate so most of your payments go towards the principal balance. I think the going rate is around 3% right now. I'm going to be purchasing a vehicle within the next few months (granted my car gets me that far) so I've been looking at my options as well.
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Jul 21, 2011
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Nurse2B wrote: maybe a line of credit would work better for you? those interest rates someone posted above are a bit high. I believe a line of credit would leave you with higher monthly payments, but at a much lower interest rate so most of your payments go towards the principal balance. I think the going rate is around 3% right now. I'm going to be purchasing a vehicle within the next few months (granted my car gets me that far) so I've been looking at my options as well.

A 3% personal LOC as low as the prime rate? A Home Equity LOC is like 3.5-4%, but you need to own a property.
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Jul 16, 2011
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MISSISSAUGA
If you find a CPO car (ie certified Pre Owned) vehicle, the manufacturers usually subvented the rates. Like Jeff's rates above for his CPO Mazda's the rates are generally quite low!

Eg BMW CPO cars like the 3 series have rates of 2.9% for 36, 48 or 60 months

I'm sure Honda and Toyota have used car programs too with low rates. IF you have good credit as you say, you should not have any issues qualifying.

Happy shopping!
Sean Chaudhry
Town + Country BMW
(416) 875 0931
sean.chaudhry@tcbmw.com for rates, residuals and current rebates on all New and Pre Owned CPO BMW's
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zilber wrote: A 3% personal LOC as low as the prime rate? A Home Equity LOC is like 3.5-4%, but you need to own a property.

I dont think 3% (bank prime) even exists unless you are a value high value client and have collateral to put up ..... very rare

Most LOC's are around the 4-7% mark ...... which still beats out a lot of Used Car Loan financing ....
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Apr 16, 2007
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Financial District B…
starrysim wrote: Thanks, that helps.
It's a used car, so I don't think manufacturer's rates apply

You said you're shopping this weekend but where exactly? Both new car dealers and used car dealers all have used cars
CPO's can only be found at franchised dealerships if you want the best used car rate on a used car.
Used car dealers may still better the rate (mainstream Cdn bank referral) you can achieve even at your own bank.
Private used car purchase, you're on your own

auto-financing-rates-1164414/#post14570999
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starrysim wrote: I have excellent credit, and good income. What are approximate rates I should expect to get if arranging financing through a used car dealer? Is it generally better to go straight to a bank, or go through the dealer? thanks for any help. I'm car shopping this weekend, and it's sort of a sudden development, so I haven't had much time to prepare.

What types of used vehicles are you considering? Are you going to registered manufacturer dealerships or something from a third party retailer? Like others I also recommend financing something CPO that ways you can get the full support of warranty as well as interest rates.
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Mazda of Toronto
starrysim wrote:
Thanks, that helps.
It's a used car, so I don't think manufacturer's rates apply

Those are used car rates..

Some manufacturers have a reduced used car rate on their own cars..

So for instance a 2009 Mazda CX7 can be financed at 2.9% over 4yrs rather than the normally 7.9%+
< The original ASK ME ANYTHING ABOUT BUYING A NEW MAZDA >

Serving the RFD membership base with Mazda's current incentives and promotions since 2007!

Edited by the RFD Moderation Team
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I have a feeling the OP doesn't quite know what CPO used cars are
Jeff-TheBiz wrote: Those are used car rates..

Some manufacturers have a reduced used car rate on their own cars..

So for instance a 2009 Mazda CX7 can be financed at 2.9% over 4yrs rather than the normally 7.9%+

Yes, and poopoo on all you manufacturers financing arms for taking business away from us all lol
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Thanks again for the input. To clarify, I was looking at purchasing from third party dealers, and not really considering CPO's (though I do know what they are :razz :) . I never realized that you can get such good rates on used vehicles at the manufacturers dealerships, I thought they were just for the new cars (which I'm not considering). After a full day of car shopping today, I've narrowed it down to a 2008-2010 Corolla or Matrix, and I will look at CPO's - the lower interest rate may just make up for the higher prices.
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TodayHello wrote: I dont think 3% (bank prime) even exists unless you are a value high value client and have collateral to put up ..... very rare

Most LOC's are around the 4-7% mark ...... which still beats out a lot of Used Car Loan financing ....

Ya I don't think you can just get a prime LOC normally. Our personal LOC is @ 3% prime, but that's only because my wife is part of the canadian medical association.
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Oct 30, 2008
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starrysim wrote: I have excellent credit, and good income. What are approximate rates I should expect to get if arranging financing through a used car dealer? Is it generally better to go straight to a bank, or go through the dealer? thanks for any help. I'm car shopping this weekend, and it's sort of a sudden development, so I haven't had much time to prepare.

If you get financing from a bank or credit union, you're looking at 7 to 10% if you have very good credit. When it comes to car loans, banks unfortunately are not the cheapest place. There are a lot of new incentives right now for new car buyers with some car makers (Nissan and Mitsu, I believe) offering 0% financing for 84 months on select models. I got a similar deal done through HCFI for 2% fixed like a month and a half ago but that was for a brand new car. I suggest you visit a franchised car dealership to obtain the best rates. If there's no decent manufacturer's financing incentive for the model you're interested in, the dealership may be able to get the deal done through a bank for a rate much lower than if you were to visit a local bank branch.
Lior Hershkovitz
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Construction rates start p+2.5%, 2nd mortgage start 5.99%, private financing start 7% max. 95% LTV
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Bumping this thread up...I'm looking to finance a used car from a third party dealer and would like to know what kind of rates I could get. Does anyone have experience lowestrates.ca?

My budget is between 8-10k and looking at model years 2010 and up. Looking for finance length terms at 36 months max.
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Why not contact a bank? the rate will be much better.
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Nov 18, 2015
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was car shopping today. 20k used SUV from KIA the guy said 4-6% depending on your credit. seemed pretty accurate

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