What APR is too high for a car?

An APR (Annual Percentage Rate) for a car loan can generally be considered too high if it is above 10% for a new car or above 15% for a used car, especially if you have an average or better credit score. Ultimately, what is "too high" depends heavily on your specific financial situation, creditworthiness, and current market conditions.

What is a bad APR rate for a car?

A bad APR for a car is generally anything significantly above the average rates for your credit score, often meaning double-digit percentages (10%+) for decent credit, and potentially 15% to over 20% for poor or subprime credit, as rates climb with lower scores, with poor credit borrowers facing rates sometimes double those of excellent credit borrowers. A rate becomes "bad" when it's high relative to what you could get (e.g., 15% when you should be getting 9%).
 

Is 24.99 APR high for a car?

A 24.99% APR is not good for auto loans. APRs on auto loans tend to range from around 4% to 10%, depending on whether you buy new or used.

Is 7% APR high for a car?

Recent Edmunds data indicates that new-car shoppers are financing their vehicles at around 7% APR, among the highest rates in nearly 20 years. With this in mind, here is some background on how car interest rates work, what factors will cause them to go down, and how to best manage this situation.

What is a good APR for a 72 month car loan?

A good 72-month car loan interest rate depends on your credit, but generally, rates below 5-6% APR are excellent, while averages hover around 4.5% to 7%, with prime borrowers getting much lower offers (under 4%) and subprime borrowers facing much higher rates. Look for rates closer to the low end for new cars and good credit, understanding that longer terms often carry slightly higher rates than shorter ones. 

What APR is too high for a car?

How much is a $35000 car loan payment for 72 months?

If you take out a $35,000 new auto loan for a 72-month term at 4.0% interest, then your monthly payment will be $547.58. Although your monthly payments won't change during the term of your loan, the amount applied to principal versus interest will vary based on the amortization schedule.

How do I negotiate a lower APR?

Steps to Take to Lower Your APR

1. Gather Information. The more prepared you are, the better. ...
2. Ask and Negotiate. Now it's time for the tough part – making the call. ...
3. Follow Up. Once you've negotiated the new lower rate, ensure you follow up to receive the new terms in writing to keep for your records.

What is the 8% rule when buying a car?

The 20/3/8 rule is a guideline that suggests you put 20% down on a car and repay the loan over three years. Applying the rule correctly will also require your monthly payment and car expenses be 8% or less of your income.

Will interest rates ever drop to 3% again?

While it's possible that interest rates could return to 3% territory in the future, it's highly unlikely that it'll happen anytime soon. In fact, some experts say it won't happen again without another major economic shock like the one caused by the COVID-19 pandemic.

What is a good APR for a 700 credit score?

For a 700 credit score (considered "Good"), a good APR varies by loan type, but expect rates generally better than average: potentially around 14-22% for credit cards, 6-7% for new car loans, and around 7.4% for mortgages, though rates change daily and depend on the lender, your income, and loan specifics. Aim for the lower end of these ranges to save money, as a 700 score puts you in a competitive spot. 

How much is 26.99 APR on $3000?

At 26.99% APR on a $3,000 balance, you'd pay roughly $67 in interest per month, totaling about $800 annually, if you carry the full balance without paying it down; this is calculated by dividing the APR by 12 for the monthly rate (approx. 2.25%) and multiplying by the balance, notes National Debt Relief.

Is 29.99 APR too high?

Yes, a 29.99% APR is extremely high, typically considered a penalty APR for severely late payments, far above average credit card rates (around 20-23%) and very expensive if you carry a balance, so you should avoid it by paying on time. 

How much is a $20,000 car loan for 5 years?

A $20,000 car loan over 5 years (60 months) results in monthly payments that vary significantly with the interest rate; for example, around $387/month at 6%, paying about $2,300 in total interest, while a lower rate like 3% makes payments about $359/month, with less interest, showing how crucial rate and loan terms are to your total cost.
 

Can you negotiate car loan APR?

Yes, you can absolutely negotiate the APR (Annual Percentage Rate) with a car dealership, just like you would the car's price, as it's a key part of the total loan cost, and dealers often mark up the "buy rate" they get from lenders for profit. To get the best deal, get pre-approved for a loan from your bank or credit union first, use that offer as leverage to see if the dealer can beat it, and focus negotiations on the total "out-the-door" price rather than just monthly payments. 

Is 34.9% APR high?

Generally, an APR below 21% is relatively low. Anything over 24% is more expensive. If you pay off your credit card balance in full every month, the APR won't be as important as you won't be paying interest. But if you forget and the APR is high, the interest charges will quickly rack up.

Will interest rates go down to 4% in 2025?

Experts' interest rate prediction for 2025 suggests that while rates may decrease, they may not drop significantly. According to some financial institutions, the average 30-year fixed mortgage rate could settle between 5.5% and 6.5% by mid-2025.

What salary do you need for a $400,000 mortgage?

To afford a $400,000 mortgage, you generally need an annual income between $100,000 and $135,000, but this varies significantly with your down payment, interest rate, and debts; a larger down payment (like 20%) lowers required income to around $100k, while less (5-10%) pushes it closer to $130k-$145k, with lenders looking for housing costs under 28-36% of gross income.
 

What is a red flag when buying a car?

Use your best judgment; if a car looks or feels wrong, don't buy it. Look out for excessive rust, a worn tailpipe, or illuminated dash lights. During your test drive, pay special attention to how the car handles and sounds. If something's off, ask the seller and double-check the title and history report.

What should a $30,000 car payment be?

For a $30,000 car, your monthly payment could range from around $500 to over $700, depending heavily on your down payment, loan term (e.g., 60 vs. 48 months), and interest rate (APR), with longer terms and higher rates increasing payments, while a larger down payment (like 20%) lowers them significantly. For example, with a $3k down payment, 5.8% rate, and 60 months, it's about $520; with a good rate on a 4-year loan, it could be $733. 

What is Dave Ramsey's rule on car buying?

Dave Ramsey's core car buying rule is to pay cash for a reliable used car, avoiding car loans entirely because cars lose value, and ensuring the total value of all your vehicles doesn't exceed half your annual income, emphasizing that things that depreciate shouldn't be financed. He advocates buying what you can afford outright to prevent debt, suggesting you save up and buy a modest, dependable vehicle instead of a new car that rapidly loses value.
 

Why is my APR so high with excellent credit?

Even with good credit, your APR might be high due to factors like recent Federal Reserve rate increases, the type of card you have or changes in your credit utilization. The good news is you can often negotiate with your credit card company for a lower rate.

What is the 15 3 credit card trick?

The "15" and "3" refer to the days before your credit card statement's closing date. Specifically, the rule suggests you make one payment 15 days before your statement closes and another payment three days before it closes.

Can I ask my bank to lower my car loan interest rate?

Be sure to compare rates and payment terms from multiple places and ask your current lender for a lower rate. If denied, let them know you've been offered lower rates elsewhere and ask if they're willing to match or beat the lowest offer.