Is a 15% interest rate too high for a car loan on a certified pre-owned 2016 Toyota 4Runner?

I'm buying a certified pre-owned Toyota 4Runner, and I have $5,000 to put down. My credit score is only about 660. The dealership wants to charge me 15% interest on a 60-month loan. Is this too high?

Answer
“A 15% interest rate is outrageous for a 60-month loan, even if you have poor credit.
So the real question is: have you shopped around? Or is this the first offer that’s come your way?
Like with auto insurance, you always want to shop around for the best rate possible. Check out online quotes from banks, credit unions, and other lenders. You should be looking at a rate around six percent to 11%.
If someone tells you that a 15% interest rate is “”good”” for your credit score, I’d suggest shopping for your car somewhere else.”
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Eric Schad
Answered on May 05, 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.
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