r/CRedit • u/Provoken420 • Apr 28 '24

Car Loan Is a 25% interest rate on a car bad?

I bought a car for 13k, I'm working on trying to rebuild my credit since I've made some poor decisions when I was 18. I seriously needed a car since public transportation is not reliable and safe where I live and is full of tweakers smoking fentanyl... I seriously needed a car and I figured it would help rebuild my credit, everyone keeps telling me I'm being screwed over on the interest. Is a 25% interest even bad?

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u/adm1109 Apr 29 '24

This is where I’m at right now. I have a sub 600 credit, no repo’s or anything, just bad credit card mistakes in recent years when I was a junkie. But I can get a 2020 Hyundai Sonata with 40k miles but it’s like 23%

I make decent money for the area I live in. My rent is only 25% of my take-home income so I can definitely afford it, but sucks I’m taking such a bath on the rate

I really have no choice with the price of used cars right now. A solid cheap car that used to cost $3k is now $6k.

I’ve been dealing with cheap shitty cars, jumping from cheap car to cheap car for a decade and it would be nice to finally have something “new”

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u/stevenshom42 Apr 29 '24

I've been out of the car industry for almost three years now, but shop around. You may be able to get a new Sonata for not much more than the used when you factor in potential incentives. Still a high rate, but the 60/60 bumper to bumper warranty is nice.