I am just curious as to what most banks do when charging interest on a car loan.
Is it prime plus 2%? Is it prime plus 3%? I understand that it would depend on if you’re looking for a fixed or variable interest rate, but I’m just curious as to the percentage for either.
The length of term I am looking at is about 5 years (60 months) and my credit is pretty good. I should have also mentioned I’m Canadian so prime right now is 2.5%.
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They are almost always fixed rate loans so although they might use prime as a reference, the rate won’t be variable. Typical car loans right now are about 6.9% for new cars and 8-9% for used.