What is a common interest rate on a financed car (if the buyer has terrible credit)?

Question

What is a common interest rate on a financed car (if the buyer has terrible credit)?

Answer 1

Auto finance is what I do for a living and credit score is only a small part of the equation.

Auto lenders look at the following factors when deciding weather to approve a deal and at what rate;

1. Loan to value.

2. Term of loan.

3. Age of vehicle.

4. Miles on vehicle.

5. Down payment.

6. Time on job.

7. Time at residence.

8. Monthly income before taxes.

9. Credit score/profile.

10. Total debt to income ratio with new car payment.

If your credit is really that bad you can look for your rates to be anywhere from 18% to whatever your State maximum is.

Answer 2

It really depends on many factors as the above person stated. I have seen them anywhere from 8%-29.99%