Auto loan interest rates in Canada are based on the amount and terms of the loan. With increased terms, the interest rates also increase. This is as a result of vehicle depreciation. The value of a car depreciates in the first few years, which makes it a risky choice for any lender to recover from. Therefore, low interest rates are offered on short term loans.
Interest Rates and Car Loans
If a borrower has a good credit score, long term loans may be a suitable option. Long term loans do not require high monthly payments. However, if a borrower has bad credit or past bankruptcy, the interest rates he will be offered may be higher.
My Car Loan Online provides its customers useful resources to find the best interest rates to suit their specification and budget. Interest rates vary depending on the individual’s circumstances. However, becoming informed about auto loan interest rates and how they affect your chances at obtaining a loan will help you determine which type of loan is most suitable. First, be aware of your budget and how much you can afford. Agree to terms and rates that you can live with. Take a look at our offers on My Car Loan Online, and apply for your credit loan application today!