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Car loan question?
My car that I just bought through a loan with a bank with a dealership was $17,900. I put $6,000 down and it's for 4 years. It's my first car loan. My credit score is almost 800. My loan interest rate was 6.99% . Why is it so high?
4 Answers
- A HunchLv 72 weeks ago
That is a horribly high interest rate at this time.
How long have you had credit? Is the 800 credit score legit or pretend (ie. you have a short file so it's not accurate).
Why is the interest rate so high? Because you didn't shop around or negotiate with the dealer.
- EvaLv 72 weeks ago
What year car? The interest rate is higher the older the car is. That does seem a bit high though. Did you go through the dealer to get your financing or did you do it on your own? You might want to check around especially with credit unions in your area to see if you can get a better rate.
- Anonymous2 weeks ago
The car went down in value as soon as you left the lot. It will continue to go down in value as you use it. That means the bank's risk rises over time because there is a good chance if you default, they can't sell the car for what you still owe.
Note, interest rates are relative. My car loan 40 years ago was 13%.
