Fuel Prices Ease Slightly, Interest Rates Vary Amidst 0% Offers
Canadian car shoppers face fluctuating fuel costs and diverse financing options, impacting vehicle affordability.
As of late June 2026, the price of regular gasoline in Canada was approximately $1.86 CAD per litre, showing a decrease from $1.99 CAD/litre a month prior. Despite this recent dip, current prices remain 17.7% higher than a year ago. The federal excise tax of 10 cents per litre on gasoline has been suspended until September 7, 2026, providing temporary relief at the pump.
Car loan interest rates continue to vary significantly based on credit scores. Average rates for excellent credit (750+) typically range from 3.99%-6.99% APR, while those with poor credit (300-559) may face rates between 10.99%-29.99% APR. For July 2026, some manufacturers, including Ram and Volkswagen, are offering promotional 0% financing deals on select models, such as the Ram 1500 and 2500 (up to 72 months) and the Volkswagen Tiguan (24 months).