Is 18% interest too much on a new Lexus IS?
"I'm financing a new Lexus IS, and the best rate I can find is 18%. My credit score isn't terrible, but I have limited credit history.
Is 18% too high for a car loan?"
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Answered on Jun 17, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
“Have you shopped around, or did the dealer tell you 18% is the lowest they can do?
If you haven’t done so already, compare prices at banks and credit unions, as these institutions typically offer lower rates than the dealer will.
If you have to buy a car, and this is the best rate you can find, you might have to accept the 18% interest rate. Make payments for about 12 months. By then you should have built enough credit to refinance.
Alternatively, if you have the cash, you might want to consider a cheaper vehicle until you can boost your credit score.”
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