Is a 20% interest rate on a car loan too high for a 2016 Jeep Wrangler?

"I'm upgrading my car to a 2016 Jeep Wrangler.

My credit score is 660, and I make $2,500 a month.

Is a 20% interest rate too high for a loan on a $23,000 Wrangler?"

Answer
“A 20% APR is probably as high as your state allows without breaking any usury (loansharking) laws. Even with a 660 credit score, this is far too high.
Have you looked anywhere else, or was this just the first loan for which you applied? Make sure to apply with banks and credit unions to see what rate they’ll offer you.
At 20% interest, don’t sign it. You’ll end up paying thousands more than you should.”
avatar
Eric Schad
Answered on May 28, 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.
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.

Read advice from car experts at Jerry

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies
Find insurance savings — it's 100% free