Should I get a used car loan if the APR is 7.5%?

I want to buy a used car and I need financing. I went to my bank and they offered a loan at 7.5%. Is this APR too high for a used car loan?

Answer
“Unless you have poor credit or your loan term is 72 or 84 months, 7.5% is a bit high. Keep shopping around and you can probably find a better rate if you have decent credit.
You should be able to find a rate of five percent to six percent if you’re creditworthy. If you do take out the 7.5% loan, refinance as soon as possible.”
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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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