Who Offers the Best Car Loan Rates in Canada?

David Galvan

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car loans

If you’re planning to finance the purchase of your new car with a loan, there are a lot of factors you need to consider. You need to figure out what the best interest rate you can get is and how long it will take to pay your loan back. 

Everyone’s situation is different, and while one car loan might be the ideal fit for your neighbor, it may not work for you. Therefore, you need to research lenders, understand the terms of the various loans you’re being offered, and compare prices before you make a decision.

To help you in your research, we’ve compiled a list of the best car loan rates in Canada.

Car Loans Canada

Car Loans Canada offers fixed interest rates of 0.00% to 29.95%, variable interest rates of 3.95% to 8.95%, and fast pre-approval with 0$ down. What sets them apart from other auto loans in Canada is their extensive network of dealers and lenders. All you have to do is fill out a quick form, and then they will present you with a list of local lenders offering various pre-approved financing options on the vehicle you’ve chosen. They work with everyone, including applicants with consumer proposals, bankruptcies, or other credit history issues.

LoanConnect

LoanConnect offers 10 to 36% APR based on your personal credit and variable interest rates of 4.8 to 36%. If you need a cash loan for a car or SUV, you can use their platform to select from a comprehensive list of lenders that you qualify for. All you have to do is fill out a quick application, and then LoanConnect matches you to the loans for which you’ve been pre-approved. Currently, their network of lenders offers loan terms from 12 to 60 months. However, the list of lenders they work with continues to expand, so the terms will vary.

Loans Canada

Loans Canada offers fixed interest rates of 0 to 46.96%. They also offer auto title loans and repair financing. They give you access to multiple lenders and quotes that are specific to your choice of vehicle, monthly budget, credit score, and income. They boast that they can match you with a list of car loans that suit your situation in as little as 30 seconds. Furthermore, they’re capable of funding up to $300,000 in as little as 24 hours. Loans Canada has term lengths ranging from three months to 60 months. They also work with borrowers with weaker credit and people who want a lower monthly vehicle payment.

CanadaAutoFinance

CanadaAutoFinance has fixed interest rates of 4.90 to 29.95%. They’re set up to act as a loan aggregator for applicants anywhere on the credit spectrum. They promise to give you a list of pre-approved vehicle financing options in less than 30 seconds. As an applicant, you simply need to fill out their quick form and wait for a finance manager to connect you with an authorized dealer in your area. You can also finance a private sale, refinance your current vehicle, or otherwise arrange to finance from non-network dealers. You have the option of being approved without a co-signer, for 0$ down, with no application fees, and without providing your SIN. However, you can only borrow between $5000 to $45000 because of the company’s position as a low-credit auto financier, and your APR will be on the higher side.

CanadaDrives

CanadaDrives has fixed interest rates of 0 to 30% depending on factors such as your credit score and whether the vehicle is used or new. You can get financing on cars ranging in price from $5000 to $75000, with terms between 12 and 96 months. You can apply online using their streamlined walkthrough that helps you to determine the exact type of loan you need, incorporating factors such as vehicle type, how much money you can put down, your budget, potential trade-in value, and credit score.

Conclusion

When looking to finance the purchase of a new or used vehicle with a car loan, it’s essential to do your research. Don’t just take the first loan offered to you. Instead, shop around and compare offers from different lenders. This will ensure that you get the best interest rate and term length for your budget.

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