What interest rate did you get for user car loan

[ws6formula]

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 ?

[Speedv1]

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'.

[theguyz]

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.

[wmahmud]

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).

[rogerrabbit168]

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?

[theguyz]

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..

[ws6formula]

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.

[ws6formula]

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.

[smacd]

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.

[Jucius Maximus]

I think there's very few situations when you should borrow money to buy a car.

[Tharyn]

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.

[HP_John]

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.

[ws6formula]

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...

[forevergone]

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?

[forevergone]

bump for an answer

[Jucius Maximus]

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?

Your credit score and how the credit issuer views it is what determines whether or not you need a guarantor (co-signer).

Btw, one of the key "Rules of Not Failing At Life" is NEVER CO-SIGN FOR ANYONE FOR ANYTHING. If they want a co-signer, it is because statistically you are likely to default on the loan, no matter how "earnest" you are or how many "good intentions" you have.

Personally, I would not take out any loan to buy a car, new or old.

[mystery]

In 2004 I got a 5 year loan for my MB @ 3.9% through MB Financial. It was for almost $50K with no down payment :)