Should I accept 10.74% auto loan rate?

Submitted by nehbs t3_10q7pl0 in personalfinance

I am buying a car and I've been having trouble getting accepted because of my job income that is based on tips. I just got my first acceptance for 10.74%. This is pretty high but I was wondering, should I accept this rate and then get it refinanced later on? Is it easier to get refinanced than it is to get the loan? How long would I have to wait to get refinanced?

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BouncyEgg t1_j6obne9 wrote

You should (if you can) save up to buy rather than take a 10+% interest rate.

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nehbs OP t1_j6oburz wrote

I kinda need a car soon because my current car has leaks all over and no working a/c. So I was really just wondering if getting refinanced is easy

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BouncyEgg t1_j6ocges wrote

> So I was really just wondering if getting refinanced is easy

Your OP title asks a different question.

"Easy" is a relative term.

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nehbs OP t1_j6ocplu wrote

I’m sorry I made the post too quickly. I have a good credit score so if a bank sees that I’ve paid off months of the loan, will they have a higher chance of accepting me?

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IceCreamforLunch t1_j6odi2q wrote

It won't be any easier to get another car loan once you have this one. It sounds like your credit score isn't the issue and your verifiable income is. That won't change quickly.

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wackshot55 t1_j6oe7b9 wrote

I bought a new car last year and was receiving letters/advertisements to refinance it already. Hasn’t even been 12 months.

I’m going to guess the turn-around time to refinance is something short like 30 days. Now that doesn’t mean you should rush to refinance. Make sure your credit score has improved somewhat significantly since the time of financing, because the higher score will help grant you a new lower rate

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[deleted] t1_j6obyb3 wrote

If you need the car, yes, but pay that bad boy off in 18 months or less. If that is. It achievable, go save more for the car.

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nehbs OP t1_j6oc88m wrote

I could definitely pay it off really early because I have no other expenses

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[deleted] t1_j6oce16 wrote

If you can pay it off quick and need the car… I don’t see a huge problem. I see a problem if this loan goes on for 3, 5, 6 years..

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whreismylotus t1_j6ofrlh wrote

it is cheaper to fix your current vehicle than pay 10% apr.

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GeorgeRetire t1_j6olecq wrote

What makes you think you'll be able to refinance it later on if the only loan you can get now is 10.74% ?

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Interesting-Dish8894 t1_j6ooxo8 wrote

I’m not sure what you should do but hell would freeze over before I financed anything at that rate.

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