Sunday, 8 Jun 2025
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA
logo logo
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
  • 🔥
  • Trump
  • House
  • White
  • VIDEO
  • ScienceAlert
  • Trumps
  • Watch
  • man
  • Health
  • Colossal
Font ResizerAa
American FocusAmerican Focus
Search
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
Follow US
© 2024 americanfocus.online – All Rights Reserved.
American Focus > Blog > Economy > I just financed a car for $15,000 at 14.89% APR — but then got a call saying my rate is now 15%. What do I do?
Economy

I just financed a car for $15,000 at 14.89% APR — but then got a call saying my rate is now 15%. What do I do?

Last updated: June 8, 2025 1:45 am
Share
I just financed a car for ,000 at 14.89% APR — but then got a call saying my rate is now 15%. What do I do?
SHARE

Financing a car at a high interest rate can be frustrating, but what’s even worse is being promised a specific rate through the car dealer and then being stuck with a different one.

It’s called yo-yo financing, a deceptive tactic used by auto dealers that allows you to drive the car off the lot before the financing is fully finalized. You are then informed that the loan fell through and that you must accept less favorable terms to complete the purchase.

You might have regrets about taking out a $15,000 car loan with a 14.89% annual percentage rate (APR). But it looks like your APR is even higher and you need to re-sign the documents?

Should you proceed, or use this opportunity to get out of the loan?

The average user car loan rate was 11.87% in Q1 2025, according to Experian. However, the average for customers with Deep subprime (credit scores 300 to 500) and Subprime (credit scores of 501 to 600) credit was 21.58% and 18.99%, respectively.

Considering you say you have bad credit, the rate you were offered at the start (14.89%) isn’t surprising. However, it doesn’t mean you made a smart financial decision with this purchase. More on that later.

Now it seems the actual rate has come through at 15%, which means the dealership may be engaging in yo-yo financing. Or, it could just be a case of poor communication.

Usually, with yo-yo financing, there’s a substantial difference between the original APR offered and the one a dealer tries to stick you with. Here, the difference here isn’t so tremendous. Also, dealers commonly use yo-yo financing to lure buyers with super low rates. A 14.89% APR isn’t that competitive.

See also  Why exchange-traded funds are a 'growth engine' of active management

Review the paperwork you signed. It could be that it says the sale is not final and the dealer can change the terms. In this case, you would have to resign the documents with the new APR to keep the car.

You probably also have the right to give back the car instead of paying a 15% APR on your loan.

This could actually be a great opportunity to get out of a bad deal that could hurt you financially. It may be time to give back the car and consider other options, like saving up for a car you can pay in cash for or saving to pay a larger down payment. You don’t want to be stuck making payments for a car that you can’t afford, and a 14.89% rate is quite high.

If you’re committed to keeping the car, you’ll have to decide if it’s worth paying the slightly higher rate. You may be able to refinance later. You can also find alternative financing for the car instead of going through the dealer. If you shop around, you may secure a lower APR.

A lower APR means lower interest costs and monthly payments. So, always do what you can to secure the lowest rate possible.

One of the best ways to do this is by boosting your credit score. According to Experian, the average used car loan rate for Prime (credit scores of 661 to 780) and Super-prime (credit scores of 781 to 850) buyers was 9.06% and 6.82%, respectively.

To boost your credit score, aim to pay all debts on time and try to keep your credit utilization as low as possible. Credit utilization is the percentage of total available credit that you’re currently using, and is a key credit score factor. Paying down credit card debt can improve your utilization.

See also  Joe Biden and Xi Jinping to speak after rare U.S. security adviser trip to China

It’s also important to check your credit report regularly for mistakes. You can request a free copy every week here.

Also, shop around when you’re taking out an auto loan, and don’t assume your dealership has the best rate to offer.

Financing an auto loan through your dealership may be convenient, but you’re probably better off reaching out to banks and credit unions to see what rates they offer. A good place to start is with a bank or credit union you already have a relationship with.

Choosing a shorter auto loan term can lower your interest costs, assuming you can get the same interest rate or better. You’ll have a higher monthly payment, but you should pay less interest by paying off your car loan more quickly.

Finally, you can also save on interest by taking out a smaller loan, by providing a larger down payment up front, or purchasing a more affordable vehicle.

Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

TAGGED:AprCallcarfinancedrate
Share This Article
Twitter Email Copy Link Print
Previous Article What is the best workout to lower your blood pressure? What is the best workout to lower your blood pressure?
Next Article Ryan Lochte and Kayla Rae Reid Divorce: $270K Debt Revealed
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular Posts

Creepy robot toddler can mimic human expressions

Bipedal robots have made significant advancements in agility and human-like movements, but one aspect that…

January 2, 2025

USMNT get set for Canada friendly as wait for Pochettino continues; Spain starts UEFA Nations League campaign

for a couple of years now and has worked with the youth teams, making him…

September 4, 2024

Harris in ‘more competitive crouch’ in Georgia as election nears

Kamala Harris has made a significant impact on the battleground states in the South and…

November 3, 2024

Free Printable Diploma Templates (Editable!)

One reads "Certificate of Graduation" in big letters with a border featuring a graduation cap…

April 21, 2025

Live cam bald eagles lost 1 of 3 chicks after snowstorm

The news of the potential loss of one of Jackie and Shadow's eaglets has shaken…

March 15, 2025

You Might Also Like

Donald Trump’s investment deals are a mirage
Economy

Donald Trump’s investment deals are a mirage

June 8, 2025
Mortgage and refinance interest rates today, June 8, 2025: A sharp turn higher
Economy

Mortgage and refinance interest rates today, June 8, 2025: A sharp turn higher

June 8, 2025
Musk vs Trump is a cautionary tale for Silicon Valley
Economy

Musk vs Trump is a cautionary tale for Silicon Valley

June 8, 2025
Best high-yield savings interest rates today, June 8, 2025 (best accounts offering 4.3% APY)
Economy

Best high-yield savings interest rates today, June 8, 2025 (best accounts offering 4.3% APY)

June 8, 2025
logo logo
Facebook Twitter Youtube

About US


Explore global affairs, political insights, and linguistic origins. Stay informed with our comprehensive coverage of world news, politics, and Lifestyle.

Top Categories
  • Crime
  • Environment
  • Sports
  • Tech and Science
Usefull Links
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA

© 2024 americanfocus.online –  All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?