am i getting a deal with this interest rate?
im buying a 2005 gmc envoy from a buy here pay here lot and i have no credit. the buy here pay here place is an in house finance lot and they approved me for a 3 yr loan for the envoy which is $6000. im putting a $1700 down payment on the car. the interest rate is 29%. i know nothing about financing and calculating rates but im aware that 29% is steep for an interest rate. Is there anything I can do to lower that rate and who controls the rate?
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Good god. Not only are you getting charged interest rates that may be illegal in some states, you are also overpaying for a car that is 8 years old.
Side note: These places do not report to the credit bureaus.
So this is doing nothing for your credit.
Get a co-signer. Find another car that is not from one of those places.
Go to a credit union for a car loan.
Consider buying cars for cash in your future.
to give you a basis to go by .. a car loan should be around 7 - 9 % interest rate. 29% is absolutely stupid.
pay in cash or find a credit union in your area that may work with you. Avoid the buy here pay here rip off joints
I had bad credit when I financed a car and my interest rate was 11% that is high for a car loan...but I bit the bullet to 1. get a needed car and 2. rebuild my credit
Never do a buy her/pay here because once it leaves the lot, there is no warranty. Go to a real car dealer for your best buys. If you go the last day of the month and 30 minutes before they close, you should get a good deal with at least at 12 or 24 warranty.
You are getting ripped off bad. That sort of place often hopes that you'll be unable to pay their inflated monthly payments, so they can repossess the car, keep whatever money you've already paid on it, and sell it to the next victim.
For sake of comparison, my credit union is offering used car loans at about 4% interest.