Overhaulin'

What is the standard interest rate for a car loan?

I am just curious as to what most banks do when charging interest on a car loan. Is it prime plus 2%? Is it prime plus 3%? I understand that it would depend on if you're looking for a fixed or variable interest rate, but I'm just curious as to the percentage for either. The length of term I am looking at is about 5 years (60 months) and my credit is pretty good. I should have also mentioned I'm Canadian so prime right now is 2.5%.

Public Comments

1. They are almost always fixed rate loans so although they might use prime as a reference, the rate won't be variable. Typical car loans right now are about 6.9% for new cars and 8-9% for used.
2. interest rate on auto loans varies according to: 1. the credit worthiness of the borrower 2. the model year of the vehicle being purchased 3. the term of the loan (length of time being financed) 4. the lending institiution each bank has it's own formula for determining rate.
3. I have been offered car loans ranging from 7% to a stupidly high 56% from various companies. the best idea is to speak with your bank and see what they can offer you, or do what i did and save for a few months and just buy with cash.
4. It can really save you some money to just get an auto loan price online to see what todays rates are. You might be totally suprised. Also if your credit is not good, a lot of online loaners are more able to help you. What I always tell friends is that an online quote at http://autoloan.saverightnow.info is what I would do.
5. Generally the companies offer interest rates on the basis of 1. Credit Score 2. Down payment amount 3. Loan term When i applied for the loan the application form asked for all these above and based on that they offered me the loan amount with their interest rates. But as i opt for used cars they offered me really low interest rates. So going on the try out here http://www.auto-financed.com from where i took a loan.