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 provided by
avatar
Eric Schad
Answered on May 05, 2021
“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.”
thumb-up

Did this answer help you?

Ask us a question by email and we will respond within a few days.
thumb-up

Have a different question?

You can meet us at our office and discuss the details of your question.

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies