Is 27% APR on an 84-month loan a normal rate?
"I've been shopping around for car loans, but due to my bad credit, it's slim pickings.
After numerous denials, I found a lender that will give me 27% APR on an 84-month loan.
Is this a good or normal rate?"
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Answered on Jun 16, 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.
“This is probably as close to loansharking and your state’s usury laws as you’ll find. So no, it’s a terrible rate.
In fact, it’s a red flag that you shouldn’t be buying the car at all. Not only are you getting a loan that’s far too long, but you’re also paying the highest interest rate possible.
Pay cash for a car, pay off old debt, and get your credit in order before you buy another car. If you buy this one, you’re sending yourself one step further toward financial stress, credit problems, and even bankruptcy.”
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