First car loan, got 7.8% is that good?

M

magnum

New Member
Hi. I found a car which I want to buy for $11k. I was at the dealer today to get it and I chose to finance it. I wanted to put a $2000 down payment and pay tax upfront. They gave me an option of paying 295/mo for 60 months which gives a number of $17700...the interest rate that they got me for is 7.8% which is to high in my opinion. My credit score is 740 but I never had any loan or mortgage, they said that its that high because of that. Even with 7.8% interest it doesnt add up. Its my first loan so I dont really how it works. I said that I am going to get a loan myself and come back with cash. Could you help understand it? Was a a good deal or did they want to rip me off?
 
Your credit score is pretty good so you should be able to get a good offer. 7.8% is not a rip off that's for sure. If it's high compared to other lenders... That's a good questions. There are so many variables, the only thing you can do is to apply and check. Most lenders do a soft pull, so it won't affect your credit score. Personalloans.com for example do a soft pull, you can check with them.
 
I think 7.8% interest is very high. your credit score is good and easily any loan company will give you a loan with less interest. try to find another loan company.
 
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