Is 24% a reasonable interest rate for a car loan for a 2009 Mitsubishi Lancer?
I have poor credit, but I've always wanted a Mitsubishi Lancer. I found someone that approved me for financing, but the interest rate seems high. Is 24% APR a good rate on a car loan for a Lancer?
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Answered on May 05, 2021
“First off, the type of car (with the exception of new vs. used and classic cars) has nothing to do with the interest rate. If you have great credit, you could get three percent interest on a car loan whether it’s a minivan or a Tesla.
Now, having said that, your quoted APR is outrageous and probably just about the maximum it can be without breaking usury (loan-sharking) laws.
If you really need the car, you should try to pay cash for it. If that isn’t possible, you could take this loan out. Just make sure to refinance the deal as soon as you possibly can to avoid paying double or triple the value of the car. “
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