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Sub-prime auto loans are increasing with almost 25% of all auto loans originated being in that category. Some people are paying interest rates of up to 23%
Could you imagine the payments on a simple 18,000 dollar sedan? It would be 507.03 per month for a five year loan.
I am currently driving a 2003 Chevy Silverado which I purchased new for 14,000. I financed it through my insurance company for 3.9%/five years and I think my payment was 270 dollars a month. (roughly) I intend to drive it until I can't any more.
23% on a car loan? Why not just put it on credit cards then?
and what are the terms. please those with no payment no bragging. most americans have an auto loan, we dont need to hear about how wrong it is, etc. thanks.
It's too much. ~$850/ month, 0.9% interest, 5 years
If are geting 23% on a car loan, chances are your credit is beyond terrible, and any cards you do have are either maxed out or have a $500 limit
This.
The last car we bought was our MDX. We could get financing for 1.9% for either 4,5, or 6 years. Or, I could just charge it on my credit card, get 2.2% cash back, plus 0% APR for 18 months.
No brainer, we charged it. It did knock my credit score hard though, went from an 827 to a 762. Back up to 789 after two months, but still, had I known how far it would drop I might have done something different. Apparently if you have a balance of over 50% of the card limit, you get penalized for it big time.
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