Automotive

What interest rate did you get for user car loan

  • Last Updated:
  • Dec 10th, 2009 8:57 pm
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[OP]
Newbie
Jul 30, 2008
46 posts
6 upvotes

What interest rate did you get for user car loan

Just curious - what rates are people getting from the big banks (ie. Scotia, CIBC, Royal, TD, etc) for a used car loan?

I know rates can vary based on a number of factors (ie. credit score, car, banking relationship, etc etc).

I am talking about someone that has an average/good credit score...kinda like your average joe...what kind of interest rates would an average joe get for a used car loan ?
18 replies
Deal Addict
Dec 26, 2005
1485 posts
99 upvotes
Guelph
I got 3.5% (TD Prime, I believe). But I'm a student, and I have a father higher in the bank, so that may be a flawed 'average'.
Nom nom nom.
Deal Addict
User avatar
Dec 12, 2006
4278 posts
482 upvotes
Barrys Bay
I got mine at 1.2% ( Special case, great credit score and banking history ) :p :p

But average ranges between 4-9% with adequate credit score.
Deal Addict
User avatar
Feb 24, 2007
3079 posts
820 upvotes
Toronto
How much credit are you guys getting?

I purchased an Acura and got a rate through them from TD for 5.74% for $44000

I would love to get a lower rate for that amount and knock down my interest rate

When I got the car, they said for a car loan that would be the best rate I could get as they have a special deal with TD.

Any help or suggetions in getting something lower? I have totally perfect credit, but don't own property to secure against my house as some have suggested to me (live at home with parents).
Deal Addict
Feb 25, 2007
2356 posts
295 upvotes
theguyz wrote:
Nov 1st, 2009 7:15 am
I got mine at 1.2% ( Special case, great credit score and banking history ) :p :p

But average ranges between 4-9% with adequate credit score.
wow, which bank are you with?
Deal Addict
User avatar
Dec 12, 2006
4278 posts
482 upvotes
Barrys Bay
rogerrabbit168 wrote:
Nov 1st, 2009 8:09 am
wow, which bank are you with?
With TD. I tried my BMO and they would not match.
When I got the car, they said for a car loan that would be the best rate I could get as they have a special deal with TD.
Sounds like you got dealer to get you financing, Big Mistake sometimes..... Best is goto bank prior and see what they will pre-approve on and there loan rates.

Dependant on how you bank, i'd go in and talk if they would transfer your car loan for a lower rate.

I know a few people paying 16% + but they messed there credit badly, if you got 5% through stealership and there commission for TD loan, you could probabaly gone direct and gotten a 1-3% easily with your credit..
[OP]
Newbie
Jul 30, 2008
46 posts
6 upvotes
I am thinking about a new SUV or a used SUV.

Most new car offers seem to include financing for 2.9% - 3.9% (or even lower for 5 years/60 months). I think getting a user car/suv loan at 1%-4% would be great. I am going to head into my bank and ask them what rate they would give me for a used SUV loan. I will post what my banks says.
[OP]
Newbie
Jul 30, 2008
46 posts
6 upvotes
I was thinking the banks would want ..say 7.9% or so...which if you borrow $25,000 for a decent used SUV (taxes etc included), you would pay about $5340 in interest for a 5yr loan.

Whereas if a get a nice new SUV for total price $34,000 (taxes included etc.) and I can finance at say 2.9% for 5 yrs, you would pay about $2560 in interest for a 5yr loan.

So, you can see the interest significant savings with lower interest rate.
Deal Fanatic
Oct 6, 2007
7357 posts
3629 upvotes
Kootenays
BoM offered us 9% last week for a straight used car loan of $15-20,000. We have $10,000 down. Instead, if we buy, we'll use our home owner line of credit which is at 3.25% (variable) right now.
Deal Expert
User avatar
Aug 18, 2005
18831 posts
3488 upvotes
GTA West
I think there's very few situations when you should borrow money to buy a car.
Sr. Member
Apr 16, 2002
829 posts
23 upvotes
Toronto
Jucius Maximus wrote:
Nov 3rd, 2009 10:15 pm
I think there's very few situations when you should borrow money to buy a car.
I concur.. borrowed money for a depreciating asset doesn't make much sense.
Deal Fanatic
Jan 21, 2008
5174 posts
992 upvotes
Interest rates from the bank on car loans are generally much higher than special interest rates for new car loans (eg manufacturer backed special interest rates). A few of the people in this thread got amazing rates, but it's not reflective of what most people will get.

In Jan/Feb 09, a lot of people would be paying 8/9% interest from the bank on a car loan, I don't know what it is know.
[OP]
Newbie
Jul 30, 2008
46 posts
6 upvotes
Scotia Bank quoted me

1. $10,000-$15,000 the rate would be 8.9% for 5 years fixed
2. $10,000-$15,000 the rate would be 7.75% for 2 years fixed
3. $15,000-$20,000 the rate would be 7.85% for 5 years fixed
4. $15,000-$20,000 the rate would be 6.70% for 2 years fixed

They also said the rate is also determined by how much you borrow, meaning the more you borrow for the bank the better the rate is...
Deal Addict
Apr 13, 2007
1099 posts
195 upvotes
Toronto
I'm in the process of comparing my optiosn.. either getting a car loan or financing through the dealer. In anycase... do you need a guarantor for either option?

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