Financing Toronto Car Loan Interest Rates

1- What’s the Average Car Loan Interest Rate for Bad Credit Car Loans?

The average car loan interest rate on loan for car buyers with bad credit is generally higher than 10%. However, many customers can refinance their automobile loan at a prime rate after 12 to 18 months of on-time car loan payments. This option does exclude people with additional reports of damaging activity on their credit reports.

2- What is a good new or used car interest rate for a car loan?

The car finance rates for a new car can be as low as 0%, and rates for used cars typically start at 5.9%, depending on the terms of the loan. These auto loan interest rates are On Approved Credit Only.

3- How can I raise my credit score in 30 days?

You can raise your credit score in 30 days in order to qualify for a low interest car loan rate by doing the following:

  • Correct any errors on the credit report.
  • Become an authorized user.
  • Raise your available credit.
  • Make minimum payments on time.
  • Reduce your debt-to-income ratio.
  • Have a good mix of debt.

As you can see, low or no credit doesn’t mean you can’t purchase a car. Raising or repairing a low credit score can be done. If your credit is in good shape, a car or truck is an easy buy but even if you don’t have great credit, there’s almost always a way to get car or truck financing rates that will work with your budget. Use our car loan calculator to determine if you can afford your vehicle based on your car loan interest rate.