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Is 12.99% for a $9,000 car loan too high if I have no credit?
I want to buy a used 2002 BMW Z3, but I have no credit. I shopped around for rates, but the lowest I found for 48 months was 12.99%. This seems really high. Is a 12.99% rate too high for me considering my credit?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“In actuality, you’re lucky you’re getting approved at all. Without a credit history, you are extremely high risk to lenders. You are also looking for a car that’s more than a decade old but also higher end.
If you’ve done your due diligence by shopping around, 12.99% doesn’t sound like a bad deal for 48 months. Just remember that you’re likely to be
upside-down on this car loan
for the majority of the loan. If possible, you should add
gap insurance
through the dealership or car insurance. Gap insurance will pay for the difference in the car’s value versus the amount owed on your loan.Don’t forget that when you buy a new (to you) vehicle, you will need proper coverage. If you haven’t already found insurance, use the free
Jerry
app to help you find the best deal. Jerry compares rates from the top 50 companies in under a minute, delivering the best deals to your phone.”View full answer
- Gregory R.
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Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
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