What Interest Rate Can I Get on a Car Loan?
Your car loan rate depends on your credit score, the vehicle, and the loan term. Here's how to figure out what rate you can actually get in Canada.
The interest rate you get on a car loan depends on three main things: your credit score, the vehicle you're buying, and the loan term. In Canada, rates range from under 6% for borrowers with excellent credit to nearly 30% for deep subprime. Here's how to figure out where you fall.
Rate Ranges by Credit Score
| Credit Score | Rate Range | Tier |
|---|---|---|
| 750+ | 5.99%–8.99% | Prime |
| 650–749 | 8.99%–12.99% | Near-prime |
| 550–649 | 13.99%–19.99% | Subprime |
| Below 550 | 20%–29.99% | Deep subprime |
These are general ranges — your actual rate depends on the lender, your income, your down payment, and more.
Rate by Vehicle Type
- New car loan rates: Typically 1–3 points lower, thanks to manufacturer-subsidized financing
- Used car loan rates: Higher because used vehicles are harder to value and carry more risk
Rate by Credit Score
If you know your score, you can estimate your rate more precisely:
- 500 credit score: Expect 20–29%
- 550 credit score: Expect 18–24%
- 600 credit score: Expect 14–19%
- 650 credit score: Expect 10–15%
Rate by Loan Term
Longer terms usually mean higher rates and significantly more total interest:
- 72-month car loan: Longer term, lower payment, more interest
- 84-month car loan: The longest common term — understand the trade-offs
Understanding How Rates Work
- How car loan interest is calculated: Simple vs amortized interest
- APR vs interest rate: Why they're not the same number
Bad Credit Rates
If you have bad credit, rates can be high — but they're not permanent. Improving your score by even 50 points can save you thousands.
How to Find Your Rate
The best way to know what rate you qualify for is to get pre-qualified. Affordrive's pre-qualification doesn't check your credit — it won't affect your score, and it shows you your estimated rate and monthly payment before you visit a dealership.
Use our Credit Score & Rate Tool to see what rate range matches your credit profile, and our Car Payment Calculator to see how your rate affects your monthly payment.
Frequently asked questions
What car loan rate can I get in Canada? It depends mainly on your credit score: from under 6% for excellent credit to nearly 30% for deep subprime borrowers. Loan term, vehicle age and down payment also matter.
Does the loan term affect my interest rate? Often, yes. Longer terms can carry higher rates and always increase the total interest you pay.
How can I find out my rate without hurting my credit? Pre-qualify first. Affordrive's pre-qualification doesn't check your credit, so you can see an estimated rate range before a lender does a credit check.
Affordrive is a Canadian vehicle-shopping and financing-information platform designed to help consumers understand their options before connecting with a dealership.
Affordrive does not guarantee financing approval. Financing decisions, rates, terms and vehicle availability are determined by the applicable lender and dealership.
Information on this page is for educational purposes and should not be considered financial advice. Read how we write and update our guides and how Affordrive makes money.