Is a 9%, 60-month loan with CarMax too much if I have an 800 credit score?

I went to CarMax to purchase a car, but I need to finance some of the final price. Even with an 800 credit score, CarMax only offered a 9% loan over 60 months. This seems too high to me. Should I shop around, or is this actually a good deal?

Answer
“With an 800 credit score, 60 months at 9% seems a bit high. Don’t sign this loan without shopping around.
If your income and debt-to-income ratio meet the specifications of other lenders, you could probably get an interest rate of 4% or 5%, even on a used car.
Always shop around for interest rates on a car loan, similar to what you would do if you were shopping for car insurance. Doing so can help you save hundreds or even thousands of dollars.
Don’t forget that when you buy a new vehicle, you will need proper coverage. If you haven’t already found insurance, use the free Jerry app to help you find the best deal. Jerry compares rates from the top 50 companies in under a minute, delivering the best deals to your phone.”
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Eric Schad
Answered on Aug 02, 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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