I recently bought a car and received a 13.2% interest rate, is that high?

Question

My credit score is 698. I have always paid my bills on time or early so I have no late payments on my history. I put some money down. I feel like that is a really high interest rate and I am debating whether I should refinance to try to get a lower interest rate.

Answer 1

My goodness yes that's high. Where did you get your loan? Hopefully not the dealership. Always, ALWAYS, go thru your own bank or credit union, find your own loan. The dealerships make money off of the loans they get you.

Answer 2

There are a whole lot more things to consider than score. How old is the vehicle, how many miles does it have on it, is it new or used, how much did you borrow in relation to what the vehicle books for in N.A.D.A. and last how many months did you finance for? All of these things effect your rate.

Banks base their rates on risk. I have seen people with higher scores than yours and they did not have any credit that would qualify them for purchasing a vehicle. Nothing but 1 credit card and some student loans. Got them approved, but at a high rate.

Answer 3

Actually it depends on more than your credit. the other major factor is the age of the vehicle you just purchased. If the car is new then you got took. if the car is ten years old and you had nothing down maybe it is a fair rate. But I would try to refinance the loan with your credit it shouldn't be hard.

Answer 4

If you bought the car in California and it's been less than three days, you can return a used car bought from a dealer for a full refund. But why did you not consider that the intrest rate was too high when you drove it off the lot?

Answer 5

Absolutely, for that kind of history and credit score you could have received something else like a 6% at least. I remember getting a new car myself and at that time my score was around 650 and I got a 6.2% with no money down. So I do think that they did you wrong.

Answer 6

That is very high you have good credit I would refinance. I am guessing you got the loan from a car dealership they will rip you off every time. It is always better to go through a bank. You can also go to a website called http://www.eloan.com/. I got my car loan through a dealership and I am only paying 8% but I had to go through a dealership because my wife's vehicle was upside down she owed more than what it was worth and so they added what she owed to our new car.

Answer 7

You didn't say if this was a new car loan, or if used, how old the car is. It makes a difference... used car loans have increasingly higher rates for older cars.

Having said that, unless the car was seven or more years old, the rate you paid IS high... my score of 650 got me a loan on a five-year-old car at 9.9% last summer.

If you have any refinancing options, by all means go for it.

Answer 8

Yeah, that is really high. You have good credit, you should be able to be at 6-8% right now. We just bought a truck last weekend and had money down in trade in's and we have great credit. We got 6 or 7% on our loan.

Answer 9

that's very high, but when i worked at a car dealership, we couldn't even finance people if they didn't have a score over 700, you probably just got that rate b/c you are concidered a credit risk. it might be that you have limited history or that your credit cards are too high to their limit, this also effects negatively

Answer 10

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RE I recently bought a car and received a 13.2% interest rate, is that high?

My credit score is 698. I have always paid my bills on time or early so I have no late payments on my history. I put some money down. I feel like that is a really high interest rate and I am debating whether I should refinance to try to get a lower interest rate.