Is 18 Percent Interest Really Bad For A Car Loan

The current APR on for a 36 months used car loan is 4.89%. This however, is reserved for car owners with prime and super prime credit score status – those with credit score above 681.

18 percent interest is very high. This is usually the APR assigned to very bad credit car buyers. Research has shown that sub prime and deep sub prime buyers pay interest of 14.29% and 17.65 respectively. In the auto loan financing industry there are many avenues.

A car buyer should not have to accept 18 percent interest from the first offer. There are banks like ALLY, Wells Fargo and Chase who cater to sub prime car buyers.

However your local credit union offer the lowest rate on auto loans. In fact, all credit unions loans are capped at 18 percent, so it is very unlikely that they will require this APR from you.

Better yet, submit a car loan application with us and let lenders compete for your business.