Is 12.99% for a $9,000 car loan too high if I have no credit?

I want to buy a used 2002 BMW Z3, but I have no credit. I shopped around for rates, but the lowest I found for 48 months was 12.99%. This seems really high. Is a 12.99% rate too high for me considering my credit?

Find out if you’re getting ripped off on your car insurance in less than two minutes.
No spam · No long forms · No fees
Find savings (100% Free)
rating white
3.5k Ratings
Answer provided by
Eric Schad
Answered on May 03, 2022
“In actuality, you’re lucky you’re getting approved at all. Without a credit history, you are extremely high risk to lenders. You are also looking for a car that’s more than a decade old but also higher end.
If you’ve done your due diligence by shopping around, 12.99% doesn’t sound like a bad deal for 48 months. Just remember that you’re likely to be upside-down on this car loan for the majority of the loan.
If possible, you should add gap insurance through the dealership or car insurance. Gap insurance will pay for the difference in the car’s value versus the amount owed on your loan.
Don’t forget that when you buy a new (to you) vehicle, you will need proper coverage. If you haven’t already found insurance, use the free Jerry app to help you find the best deal. Jerry compares rates from the top 50 companies in under a minute, delivering the best deals to your phone.”

Here to save on car and home insurance? Great, you do that. We’ll do everything else.

Sign up in under a minute.
No need to fill out forms or shop around. Sign up in 45 seconds to start saving. Jerry does the rest.
Jerry collects and analyzes your current coverage.
Say hello to Jerry, your new insurance agent. We’ll contact your insurance company, review your current plan, then find the coverage that fits your needs and saves you money.
Get the best options before your renewal.
Jerry does all the picky, busy work by comparing prices and coverage from more than 50+ insurance companies. We compare what we find to your current policy and offer you the three best options before every renewal.

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies
Find insurance savings — it's 100% free