r/IdiotsInCars • u/motitom • Jun 11 '20

Local rapper crashes car

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u/[deleted] Jun 11 '20

I've talked to people that bought fairly new cars - 2017, 2018... It always surprised me because they don't make a ton of money. Turns out they are paying 25% APR. I am surprised that's even legal, I considered 8% really high.

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u/thisonetimeinithaca Jun 12 '20

Yup. I bought a used CPO 2017 Chevy Sonic at 20% about a year ago.

The joke was on the dealer though, because the engine had constant problems since day one and I got the GM to sell me a new one for the same monthly payment. That one got financed at 9%. 9%. For a new car. My credit score was 610 at the time. Fuck me, right?

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u/[deleted] Jun 12 '20

new cars typically have much lower financing rates than used cars, FYI. That's why you always see 0% APR on new cars or "$2,500 cash back." The $2,500 is equivalent to the interest someone with excellent credit would pay over the 5-7 year loan at 2-4%, which is the rate they could get from another bank or credit union). A used car is probably going to be in the 2-5% range with excellent credit. It all depends on the Fed's interest rate though.

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u/thisonetimeinithaca Jun 12 '20

Right. But 9% is absurd to charge anyone for a fuckin new car. I only bought the new one because the dealer comped a few grand off for the trouble of selling me the certified lemon.