What is the highest APR a lender can charge on a new car loan?
I have poor credit (around 450 credit score), but I want to get a car loan. However, I don't want to pay too much. What's the highest APR a lender can charge?
With a 450 credit score, you’re not going to find very attractive interest rates. The average new car interest rate in your credit range is 13.97%, while used car loans average about 20.67%.
Although state usury laws try to set caps on interest rates for car loans, some lenders are crafty and can bypass these laws. Furthermore, some states have usury laws that don’t necessarily apply to car loans. This means that lenders can charge whatever interest rate they want, provided that you agree to the amount.
Because of these exorbitantly high-interest rates, you may want to avoid taking on debt and instead use your money to pay off existing debt or delinquent accounts.
If the car loan is out of necessity to get to work or school, then you might have to settle on a higher rate, although finding a lender might prove difficult. The only way to make sure you don’t pay way too much for a car loan is by shopping around.
Don’t forget that you’ll need to budget for car insurance, and when you finance vehicles, lenders will require full coverage. Use the number-one-rated car insurance app, Jerry, to help you find the lowest rates on car insurance. Jerry compares personalized rates from more than 50 top providers and delivers the best deals to your phone in minutes for free. The average Jerry driver saves $879 a year on car insurance!
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