High APR

[Griffin]

I went to buy a 2017 Ecoboost Premium today and was planning on buying it but the APR was 22%?? Definitely gonna buy one outright now instead of financing, why in the world is the APR so high?

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[armsdealer]

Do you know your credit score?

 

[DmanDmythDlegend]

That is going to be entirely related to your FICO score unfortunately..

 

[petraman]

If you buy outright, you'll never get those APRs to drop... Do you have access to a credit union? They might be more lenient. Check your credit score at creditkarma.com

 

[jz22]

sounds like you have no credit at all, toyota tried to give me 16% and my score was in the 400's

 

[TheSnowmanMafia]

22%?

Do you have bad credit or no credit history?

 

[Strokerswild]

Rates are definitely up these days, but not typically that high.....

 

[Bull Run]

Interest rates for used cars tend to be higher than new ones but 22%'s still too high.

The current average for 36-month for used cars is 5.17%. Consider looking at banks or local credit unions.

https://www.bankrate.com/loans/auto-loans/current-auto-loan-interest-rates/

 

[cdq85]

If you can afford to pay for it outright, put enough cash down to finance around 5k (which is usually banks minimum amount financed). With that much money, the bank will almost certainly buy the rate way down because there isn't much risk. Finance for 36 months and who cares what the rate is because with that little amount financed, you'll only pay a few hundred in interest. It's worth building or rebuilding your credit score.

 

[Cobra Jet]

22% from what Dealer, Ford or a “mom-n-pop fly by night pay $500 down we Finance here” type of Dealership”?

At that rate and not knowing any more info, it could be a whole combo of things such as credit, low or no money down, trading in another vehicle with no equity or the type of Dealership from where you’re buying etc.

 

[Goterr0r]

As everyone else mentioned. Its not the car or the dealership. Its your credit. Used cars rates are going to be higher than a new car. I picked up a 2017 Escape for the wife this weekend and got 4% with nothing down.

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