Is 11.45% high for interest rate for used vehicle. I don't think i have

[chocolate delight]

bad credit just way too much!?
I didn't think my credit was bad..but I have way more than I need on my current salary so would it be better to pay down/off some ccards and close a few than try again to get a lower rate for a used car loan.

[Richard]

Well really the only way to know would be to look at your credit.
I process nearly 2500 loans a month where I work.
( A large Auto Dealer in TX )

Rates can go from 4.99 on used cars all the way up to 24 %.
There is also more to look at when you are deciding if the rate is good or not.

One, Credit history, not only your score, but also your balances on your cards, are they over 50% of the limit? Is there any slow payments, repos, bankruptcies, Charge off accounts, and public collections, like cable bills, child support, things like that.

Secondly, is how much are you are borrowing in respect to the value. Did you put money down, are you financing the taxes and registration fees. Is there any negative equity from a trade in. The ideal situation is to buy a car that you owe only 80% or less of its value.

All these factors can affect the rate.
Also keep in mind you can sometimes negotiate your interest rate.
Plus you can always refinance. Go to your bank or local credit union, see what they can do to help, or if they can even help at all.
This will give you a true idea of your buying power. If your bank says "NO" we wont help you, then YES that rate is good. If they say yes we will help you, but there rate is the same or higher. Then well obviously that is just the situation you are in.
But often times, you local bank or credit union will be much less, maybe even 2 points so. So I would check it out.

Keep in mind with the credit problems in the mortgage market. Lenders are getting tougher on there buying of less that perfect paper ( credit ). They want more money down and higher rates. To help offset there risk down the road.

Best thing to do is pay down your credit cards and to fix any derogatory items on your report. Then Refinance the car, if you can.


Finance Director
GMC, Pont. , Chevrolet, KIA, Hyundai, Isuzu.

[deathbymonkeys69]

Considering the market today, yes, it is too high of an interest rate. For a used car loan, you should be looking in the range of about 5% to 9%. Now, you may think that 2% difference isn;t much, but over the life of the loan, you could pay more than 2000 bucks in interest. Just like taking good money and throwing it in the trash. Go get your 3 credit scores from Equifax, Experian, and Transunion, and know your credit score for negotiation power. Its the only way to go. Good luck.