How to calculate interest on a car loan?
“Depending on the loan term, 7% APR on a used car loan isn't all that bad. Because a car that's over 10 years old is considered high-risk, you're unlikely to find a much lower rate. Even so, you should shop around to ensure you're still getting the. If the current offer is the best one, try to avoid a long-term loan.
Is 7% interest on a car high?
According to Middletown Honda, depending on your credit score, good car loan interest rates can range anywhere from 3 percent to almost 14 percent. However, most three-year car loans for someone with an average to above-average credit score come with a roughly 3 percent to 4.5 percent interest rate.
Is 3% interest rate good for a car?
Interest of 12% is really high, but since you've already bought the car, you can make your payments on time for six to 12 months and then refinance at a lower rate.