Interest rates in Canada

Toyota’s current interest rate for a 5 year loan in my area is 4.19%… which is pretty awful for a new car coming from a dealership.

Obviously I understand it’s just a sign of the times with interest rates rising.

But I thought I’d ask any fellow Canadians out there - is there anywhere external to the dealership that you’ve been able to get an interest rate lower than 4.19%?

Thanks.

 

awful? wait until inflation hits, and the rates go back up close to 10%... it is coming. doubt we will ever see zero, or less than 5% ever again. Ski

 

Had 4.99 on Tacoma in 2018 when financed and 4.49 on GR86 now, Toyota always been in 4%+ In Canada... Don't see what's the complain is about? Don't like it, shop around.

 

Welcome to Canada. Toyota rates have always been like that here.

 

4% is not bad

 

Tacoma was under 3% a few years ago in Canada. When I had my 2017 even lease rates were under 4%

What I find interesting is that Subaru uses Toyota finance in Canada and BRZ is like $300 less per month to short term lease compared to GR86 due to much lower rates on the Subaru side.

 

I work as a sales manager at a dealership here in Canada and I got my ruck new at 3.79 a month ago so honestly 4.19 is still really good. Anything below 7 is really low in my opinion. Take the 4.19 and run.

 

Google told me that the inflation rate in the Great White North is 5.7%, the highest it has been in 30 years....

https://www.cbc.ca/news/business/canada-inflation-february-1.6386536

So at 4.19%, you're coming out ahead..

Check your bank. Maybe they'll give you a favorable rate for being a good customer.

I am south of the border, and got BoA to finance my used truck at 3.89%.

 

BNS is the largest auto loan dealer in Canada. And also the lowest rates. You can get a auto loan through BNS without being an existing customer.

 

Quick Google of auto loan rates shows a couple banks at 3.99%, Royal, CIBC, BMO... but doubt those will stay under 4% for long.

This information may very well be outdated by now though
..


Some dealers are funny with outside financing though, when I financed mine, I was pre-approved with my Credit Union. The dealership wanted me to finance through them.
They wouldn't issue paperwork or even talk to my contact to have the funds released. After 2 weeks they finally accepted my pre-approved interest rate and financed through them... turned out to be the Royal Bank. I guess they get kick backs or something because they wouldn't accept my source of finance.

 

When I bought my first house my rate was 12%. 4.X is still cheap unless there are specials. I got 0% in May 2020 when they were afraid the inventory would sit on the lot. That seems like forever ago.

 

Many years ago (early 80s) back in a past life I was starting out in mortgage banking. First conventional loan I closed in my career was at 18%. That was not a sub prime either, was standard Fannie/Freddie rates at the time. Fast forward to a little over a year ago, I refinanced my mortgage at 2.99%. Two months ago I refinanced my truck at 3.49% through my credit union. I realize I'm south of the border but your 4.19% is not really bad.

 

Nov 2019 I financed my 2020 with toyota for 3.49%.

 

Standard Tacoma rate in Canada. Feels cheaper given the times we live in.

 

I miss the days of getting 10% APRs on US Savings Bonds....

 

I clearly needed the reality check here. 4.19% ain’t that bad, it’s just that I’ve gotten used to the past decade of reliable near-0% APR advertised at a lot of dealers. In reality it only adds like $500 to the cost of the vehicle over its lifetime compared to the previous advertised rate (advertised when I put the deposit in).

thanks all

 

At a Chrysler dealership...

 

If you are an existing Toyota customer (trade in) you can get up to a 1.5% rate reduction too

 

I was lucky with my October 2020 Sport purchase at 1.9% for 72 months with Toyota Canada. Toyota rates are usually on the higher side in Canada. Yes, current economic conditions are seeing pressure on interest rates rising due to spiking inflation.

 

Interestingly enough, Tacoma's competitor the Jeep Gladiator has an even higher interest rate for 60 months in Canada to finance than the Tacoma.