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Bad_DNA t1_ja5iq1f wrote

Always assume you'll end up with the high end of those online credit guesstimates. So a $10k car with a 48 month loan at 17% will run an extra $3850 of interest. Assume the purchase price is going to be another $1000-$1500 of dealer 'add-ons' and misc fees, so you could buy an $9000 car for roughly $290/mo. That's before you actually use the vehicle (gas, maint, insurance).

https://www.creditkarma.com/calculators/credit-cards/debt-repayment

But with a less desireable credit score, you can more likely expect usury pricing of 20-25% interest. Splitting the difference at 22.5% interest, you will pay $5254 interest on a 48mo $10k loan.

Anything you can do to raise your FICO (pay all bills on time in full, avoid debt) and/or save toward the vehicle and pay cash (saving 1/3 of the total cost!) is advisable.

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fanofthings- OP t1_ja5j4dx wrote

Wow 25% percent interest is crazy if that’s the case then you’re right buying a car outright would be better

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Bad_DNA t1_ja5w854 wrote

Even 17% is crazy. Who wants to end up paying 40% more for a car because of debt slavery? Yet people look at 17% or 10% interest and say... no problem. The same people who made fun of math nerds in school, usually.

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