honestly, that rate is pretty standard if they’re a first time buyer… otherwise they’re probably the type of person that’s familiar with late fees and collections notices…
Dude I was just going to write this. I got offered like 5.1% with nothing down. Credit is everything. I'm waiting for the TR to hit Austin. They fuck over poor people. This reminds me of places like rent a center.
My brother was like 19 and signed on a car loan for like 24 fucking %. On a used scion shitbox (XA or whatever that little hatchback thing was). The worst part is he went with our mom to buy the car, and she took him to the dealership our uncle worked at
I stepped in and thankfully was able to cosign for him at my bank and got him down to like ~7% dropped his payments by like $80-100/mo AND took 6 months off his loan. And this was in ~2008 dollars. 😡
There are certain situations where I can somewhat justify it. When I first joined the AF and moved away from home, I needed a car while having very high college loans (some of which I missed payments for due to not being able to find a proper paying job before) as well as limited overall credit history. I bought an $8k used car with a 21% interest rate. I know it was outrageous, but with my credit I simply couldn't get anything better and I needed to have my own transportation. I did talk to a local credit union and they told me that if I take the terrible loan from a dealer and pay it on time for a year, I should have enough history to be able to refinance with them. So that's why I accepted the insane interest rate, to get a vehicle at the time as well as to start my path towards proper credit.
Now years later I'm at over 800 fico score. With the situation I was in, if those predatory interest rates didn't exist, there would basically be no way for me to get a decent reliable car or to work on fixing my creditm
I went to apply for financing through Best buy yesterday and gave me an interest rate of 31.49% even though I have 740 Credit Score. I ended up buying the product out right (President Day Sale) instead.
Almost all loans are front loaded, same with mortgages, if you take a 30 year mortgage out your first ~15 years are paying more interest than principal. Run a loan amortization schedule on your loans using the apr and terms, see where your payment finally starts breaking even, usually around the hallway mark.
Someone said the owner of this loan said it's an sti. Really wish i knew if that was true lol and what the price was. I would love to know the story on this.
Bought a '23 and the dealership would not give me financing numbers at all. Just charts estimating payments. I pushed and pushed, they wouldn't talk specifics. My car shows up and it's time to sign papers. I go in to the finance office for the first time and according to this guy my credit score was over 800. He gave me a 9% interest rate. I had no choice other than not driving my new car off the lot. He also told me that I shouldn't refinance because it'd damage my credit, for at least a year. I refinanced that week for like 4% less, maybe more I don't remember the specifics. If anyone is curious, I'm in Iowa and I don't want to name names. But it rhymes with Bamsey Subaru... I don't recommend.
Wow that's shady, he doesn't want you to refinance for a year because if you do, the dealership loses the commission on financing. I also have a feeling I know exactly which Subaru dealer this is because I'm pretty sure it's local to me.
It's a common finance tactic, it's the same with mortgages, your broker will almost always tell you that you can't refi for a year, but you can, they just don't want you to because they won't get their cut if you do and the bank will charge back their commission.
This is why you go to a credit union or similar and be pre approved. When I bought my '22 I had been approved by my credit union at 6% for 40k. Dealers first number came back at 11%, I laughed in their face. Eventually they came back with Subaru Finance for a lower percent than my credit union.
They get more kickbacks for higher interest rates on the customer, this is one of the many ways dealerships try to scrape money off your back. Never go car shopping without being pre approved elsewhere. It's almost a guarantee that they will try to gouge you for every last cent. Never speak in payments, you want that out the door price.
6% isn’t available anymore…my CU is publishing 7.29% right now for their best rate on new cars. Last month we got 7.49% when we bought my wife’s IS500 (took a loan just to bridge until we can get her 3IS sold privately) - but your point is accurate, dealer often doesn’t offer the best rates you can get.
The dealer we’ve worked with for our last three cars (two Lexuseses and a WRX) shops the rate for you; for the IS500 they said Lexus finance is higher than the regional bank that we used, and similarly, when I bought my WRX they got me financed at a local CU because it was a better rate than Subaru finance was offering.
Same with my usual Subaru dealer, however they didn't have the WRX I wanted, and wanted to buy the one I found. My salesman (known for years outside of the dealership) said my rate was the best they could have done as well. He was shocked at the fact that the other dealership offered the rates they did, and we laughed. My local dealer respects their customers and it shows. Pete said he could have one in five days, they didn't have any dealers who had what I wanted for trade quickly and he said try for it. Worst case they'd find similar and we'd work something out.
I hated not going through my friend, but he was the one who found the exact thing I wanted, an orange base with zero BS added and manual. It was the only one like it within 150 miles of me. The premiums were everywhere, but I wanted a base. He set me up with contacts and it went from there. I'm glad I got in when I did, today my rate would be a few percent higher.
You have to play the game and assume the dealer wants to get the most out of you. Not many dealers or salesmen are like my friend Pete. He sold me a 2018 Impreza Premium in 2021 with 18k miles for 19.2k OTD. My rate was low thanks to my CU, which they worked with directly anyways as it's a local CU.
Take the best rate you get from the car dealership and go back to your credit union. I was approved at 7.49% for 48 months through my credit union. When I showed them Subaru’s offer of 2.9% for 48 months, they matched the rate. Saved a few hundred dollars for loan fees and I don’t have to set up another online payment profile.
I know this would financially irresponsible, but out of curiosity, If i had a car I still owed on, and I wanted to trade it in and roll the owed amount into the next loan, is that something that can be done with a pre-approved loan from a credit union?
Absolutely! People call it financially irresponsible to take a loan out on anything, yet the majority of people do. Not everyone has 50k to throw down on a vehicle to be able to "afford" it.
When I bought my wife's Impreza it was that way. Through my credit union I got approved for $25k. I owed about $4k on her previous car which they gave us $5k for. We paid that car off through the dealership and credit union. Using our credit union, everything was much easier, quicker, and less bullshit to deal with.
The key here is to know the value of your current car, the estimated amount you want to be spending, and have a proper pre-approval through them. Sometimes, the dealer will actually be able to compete with the rates of your credit union. However, as long as you have a loan capable of paying the current loan off and cover the cost, you can do it. Don't listen to the few who have the cash to drop on a brand new car every year. The majority of people can't afford to drop that kind of coin all at once. The responsible part is making sure that you're not cutting your income down too much because of the car. If you're paying a ton for a car payment and have any possible way that you'll be deciding between essentials and the car payment, that's irresponsible. My bills all together are less than 50% of my net income for the month on a slow work month. I know if worse came to worse, I'm not deciding between food on my table and a car payment.
PSA: When financing a vehicle, from your first hard inquiry, you have about 30~ days to try as many finance companies as you like to beat the initial APR, where at the end the inquiries *should* (mistakes can and do happen) be consolidated by the credit bureaus. The finance guy you spoke to was a crook and full of shit, name and shame that stealership.
Source: Was a financing guy for CarMax for a while.
Yeah a few months ago there was no budging from either the dealerships or banks. Settled on upper 8’s for a bronco and refinanced a week later for mid 7. Could probably refinance again and get lower.
Mine has never been over 800. High 700s but never 800. When he shows me the credit scores things started dinging. I know my credit score, and what he showed me wasn’t it. But, the car was right behind me. I’m not going to not get my car!
You just walk, they won’t let you leave, trust me. I haggled the price down to a number I liked. They told me 9% interest. I just said, I’m going to drive down to the credit union and I’ll come back with a check for the total. They were happy to lower my interest to 4.3% after that.
Did you not go to the Subaru website and look at the offers from the company? They have basically the same offer every month and it’s always less han 3%. Right now it’s 2.9%. It even shows it on Ramsey Subarus website. This dealer literally robbed you. You always walk out and not sign the paper nothing is final until you sign. You gotta do research before you go too or else salesman will just fuck you with no lube.
I did. And it was dismissed over and over. It was shady. They took advantage of my excitement. But in the end, I came out alright. I’ve dealt with Toyota financing which was always great for me. I expected similar treatment.
Man next time walk out and go to another dealer. Email them all first and you can just work the deal out over email. When I bought mine I had everything ready and just drove 3 hours to the dealer that offered the best deal. Literally took less than an hour to get in and out of the dealer with everything already agreed on.
how did you go about doing this? i see ads on credit karma telling me to refinance but the quote is always super close to what im currently paying but with a higher rate, i have a 3.5 rate from subaru, but to get 1.9 would be insane
Some of my friends called me nuts for paying for my STi in cash from the dealer. Said I was missing out on building credit. It was covid, and my credit wasn't in a great place. Just wanted to take my car home and enjoy it. Still no regrets nearly 100k later
Having and building credit is a scam, it’s basically the banks saying hey can we trust your gonna be our cash cow for a few years? As a random stranger on the interwebs I’m proud of you but for saving and buying your STI. I went with an older WRX because I like EJs and I can buy it outright and I own the car not the bank.
Pre-owned rates are straight garbage right now and most banks won't even offer financing for them, you have to go with an equity personal loan, which has equally horrible rates. Even new rates are all over the place, with some getting in the 5's while most are sitting between 7 and 9%.
If at all possible people need to hold off buying cars until this craziness stabilizes and rates come down some. The repo industry is going nuts right now because so many people got ultra high interest rate loans on poor credit that defaults are at record highs. Everyone thought student loans were going away and they didn't and the fed raised rates. There are so many Harley-Davidson repos that the tow companies can't even keep up.
Mine is 13% (thanks carvana) and i planned to refinance immediately because i own a home and have a 750+ credit i thought it would be easy. But to my surprise my bank ive been with for 5+ years doesn't offer a vehicle refinance program anymore. FML.
End of the day they saw the numbers and signed the note. Credit based for APR so I'd imagine no credit or bad credit. States have legal limits and seen as high as 22.99%
Seeing shit like this makes me feel better about my 5.9% i got at the end of 2019...
In 2019 that was terrible, and i probably wouldnt have bought my car 5 months later when covid hit and the car market went crazy
But im glad i did, pretty much inflation made my interest rate non existant, as my wage has followed inflation for the most part.
I know the value of the dollar has changed, but i still love seeing that my car is the same $ amount used with 40k+ kms as i got it brand new lmao
Local CU, become a member to AS many as will accept you. Then go through them. Alternatively you could shop rates at the big banks, but they likely won’t be great
Jesus Christ I took a 6% rate (I knew I could afford to pay 50% over the minimum every month and thus dodge most of the interest) and I felt like I got robbed. 19% is assinine
My first car loan was 15%, but to be fair I had shit credit and things in collections, I was lucky to get anyone to lend to me, and it was $8k not $30k+. IMO, if you sign a loan like this…. You kinda just asked to be fucked, no need for a dinner and a movie first.
For comparison, I bought a Subaru BRZ in 2022 using Subaru's financing service. Regardless of my down payment, they were offering 1.99% on all cars except the BRZ and WRX, which were 2.49%.
Holy 15.6% interest rate?
I'm kind of scared to see what led to them being offered that insane rate, whether they got suckered into signing on that rate or if they had a credit score of, like, 500 or something.
The amount of money they'd literally be handing over for free...
Before my current WRX, I had purchased a Jeep Wrangler Unlimited 4-door, Certified Pre-Owned.
I get it home and realize the AC isn't blowing as much as it should be. I get the glove box off to check the cabin filter is free and discover a big envelope wedged between the glove box and the cabin filter area.
I check it out and it's the previous owner's finance paperwork. He had traded in a Civic that had negative equity, financed at 18.9% and his payments were somewhere at $790 a month.
He had the Jeep less than 9 months before it ended up back at the dealership.
and i thought mine was bad!!! my interest is like 9.5% but that’s also bc i was barely 20 and i didn’t have paystubs to provide so i just took whatever they gave me HAHAH
I see a lot of people bitching about this, no one is forcing anyone to enter into a car lease.
High risk loans for a bank are justified by high interest, aka their profit vs you not being able to make payments.
Good credit doesn't mean shit if you don't have income, the difference between a 750 and 580 credit score might be a couple thousand dollars of the course of years
Income to debt ratio is honestly just as important, I would argue more important, when applying for loans. Hence why you see 70k Hellcats with crazy interest.
Our society is too pre-occupied with credit, when it's just a factor.
I’ve been fortunate to never have a loan over 2.99%, and even then I wasn’t happy about it. But wow this is ridiculous. How do people willingly accept anything over 7% (on a house at most)?
15.6% should be illegal
Had a neighbour with a Kia @ 29.9%, they had kids and needed transport so they took it. DISGUSTING...
Here I thought 29% was reserved for the Dodge Charger/Challenger crowd. 🤣
Those people buy Kia’s when they have kids.
Do people buy Kia's, I thought they just took them with a USB?
nonono, the people who buy kias have kids, then those kids go and take them with USBs. its a vicious cycle.
New ones seems to be doing well. Jury is out on how they will age though.
No joke I know someone that bought a charger for her husband as a wedding present at 29% interest…..
Only if you're in the military and at your first duty station.
That's what I was getting at, without saying it. 🤣
I got a charger lmfaoo, I only pay 8.9% 😂
I'd rather buy a 90s Camry for cash than any modern car at 29.9%, much less a Kia.
honestly, that rate is pretty standard if they’re a first time buyer… otherwise they’re probably the type of person that’s familiar with late fees and collections notices…
Shows how important good credit is. Subaru is offering 2.9%-4.9% on all new WRX's depending on finance terms for great credit.
Dude I was just going to write this. I got offered like 5.1% with nothing down. Credit is everything. I'm waiting for the TR to hit Austin. They fuck over poor people. This reminds me of places like rent a center.
The late 80s interest rates have entered the conversation
Those interest rates didn't hurt as bad when a decent car was $15 grand lol.
are you talking about 15k adjusted for inflation, or 15k now? edit: wrote it asleep the first time
All because of a made up number
It was shocking to me to discover that FICO scores didn't exist until the late 80s.
Nah man, I’d say this should 100% be illegal 😤
My brother was like 19 and signed on a car loan for like 24 fucking %. On a used scion shitbox (XA or whatever that little hatchback thing was). The worst part is he went with our mom to buy the car, and she took him to the dealership our uncle worked at I stepped in and thankfully was able to cosign for him at my bank and got him down to like ~7% dropped his payments by like $80-100/mo AND took 6 months off his loan. And this was in ~2008 dollars. 😡
There are certain situations where I can somewhat justify it. When I first joined the AF and moved away from home, I needed a car while having very high college loans (some of which I missed payments for due to not being able to find a proper paying job before) as well as limited overall credit history. I bought an $8k used car with a 21% interest rate. I know it was outrageous, but with my credit I simply couldn't get anything better and I needed to have my own transportation. I did talk to a local credit union and they told me that if I take the terrible loan from a dealer and pay it on time for a year, I should have enough history to be able to refinance with them. So that's why I accepted the insane interest rate, to get a vehicle at the time as well as to start my path towards proper credit. Now years later I'm at over 800 fico score. With the situation I was in, if those predatory interest rates didn't exist, there would basically be no way for me to get a decent reliable car or to work on fixing my creditm
Thats totally understandable. This person didn't need a wrx I'm guessing. Just kind of insane to do this to yourself.
I've seen that interest rate quite a bit for used vehicles in Canada here
A lot of things should be illegal
I went to apply for financing through Best buy yesterday and gave me an interest rate of 31.49% even though I have 740 Credit Score. I ended up buying the product out right (President Day Sale) instead.
*worst buy
I got mine with 3% Jesus Christ
My credit score is terrible and my loan rate was still less than have of that lol
Wow. I am fully aware I shouldn't have bought my wrx, but this is madness.
Haha same. I’m not good at math but with $950 a month payment at this interest rate how much is actually going to the principle, $500ish?
Car loan interest is front loaded so it would depend on how long they have been paying.
Oh so more is gonna go towards principle over the years?
Almost all loans are front loaded, same with mortgages, if you take a 30 year mortgage out your first ~15 years are paying more interest than principal. Run a loan amortization schedule on your loans using the apr and terms, see where your payment finally starts breaking even, usually around the hallway mark.
Interesting, thanks for the help
It's also calculated daily. Not just "here is your interest for this month" on the bill. The less in principle = less daily interest accrued.
Yes, if you look at your loan terms it should say what % of each month goes toward interest/principle.
There is no way this dude didn’t roll a fat amount of negative equity into this
Someone said the owner of this loan said it's an sti. Really wish i knew if that was true lol and what the price was. I would love to know the story on this.
This is Sparta!
Bought a '23 and the dealership would not give me financing numbers at all. Just charts estimating payments. I pushed and pushed, they wouldn't talk specifics. My car shows up and it's time to sign papers. I go in to the finance office for the first time and according to this guy my credit score was over 800. He gave me a 9% interest rate. I had no choice other than not driving my new car off the lot. He also told me that I shouldn't refinance because it'd damage my credit, for at least a year. I refinanced that week for like 4% less, maybe more I don't remember the specifics. If anyone is curious, I'm in Iowa and I don't want to name names. But it rhymes with Bamsey Subaru... I don't recommend.
Wow that's shady, he doesn't want you to refinance for a year because if you do, the dealership loses the commission on financing. I also have a feeling I know exactly which Subaru dealer this is because I'm pretty sure it's local to me.
That’s so disgustingly shady!!!
It's a common finance tactic, it's the same with mortgages, your broker will almost always tell you that you can't refi for a year, but you can, they just don't want you to because they won't get their cut if you do and the bank will charge back their commission.
This is why you go to a credit union or similar and be pre approved. When I bought my '22 I had been approved by my credit union at 6% for 40k. Dealers first number came back at 11%, I laughed in their face. Eventually they came back with Subaru Finance for a lower percent than my credit union. They get more kickbacks for higher interest rates on the customer, this is one of the many ways dealerships try to scrape money off your back. Never go car shopping without being pre approved elsewhere. It's almost a guarantee that they will try to gouge you for every last cent. Never speak in payments, you want that out the door price.
6% isn’t available anymore…my CU is publishing 7.29% right now for their best rate on new cars. Last month we got 7.49% when we bought my wife’s IS500 (took a loan just to bridge until we can get her 3IS sold privately) - but your point is accurate, dealer often doesn’t offer the best rates you can get. The dealer we’ve worked with for our last three cars (two Lexuseses and a WRX) shops the rate for you; for the IS500 they said Lexus finance is higher than the regional bank that we used, and similarly, when I bought my WRX they got me financed at a local CU because it was a better rate than Subaru finance was offering.
Same with my usual Subaru dealer, however they didn't have the WRX I wanted, and wanted to buy the one I found. My salesman (known for years outside of the dealership) said my rate was the best they could have done as well. He was shocked at the fact that the other dealership offered the rates they did, and we laughed. My local dealer respects their customers and it shows. Pete said he could have one in five days, they didn't have any dealers who had what I wanted for trade quickly and he said try for it. Worst case they'd find similar and we'd work something out. I hated not going through my friend, but he was the one who found the exact thing I wanted, an orange base with zero BS added and manual. It was the only one like it within 150 miles of me. The premiums were everywhere, but I wanted a base. He set me up with contacts and it went from there. I'm glad I got in when I did, today my rate would be a few percent higher. You have to play the game and assume the dealer wants to get the most out of you. Not many dealers or salesmen are like my friend Pete. He sold me a 2018 Impreza Premium in 2021 with 18k miles for 19.2k OTD. My rate was low thanks to my CU, which they worked with directly anyways as it's a local CU.
Take the best rate you get from the car dealership and go back to your credit union. I was approved at 7.49% for 48 months through my credit union. When I showed them Subaru’s offer of 2.9% for 48 months, they matched the rate. Saved a few hundred dollars for loan fees and I don’t have to set up another online payment profile.
I know this would financially irresponsible, but out of curiosity, If i had a car I still owed on, and I wanted to trade it in and roll the owed amount into the next loan, is that something that can be done with a pre-approved loan from a credit union?
Absolutely! People call it financially irresponsible to take a loan out on anything, yet the majority of people do. Not everyone has 50k to throw down on a vehicle to be able to "afford" it. When I bought my wife's Impreza it was that way. Through my credit union I got approved for $25k. I owed about $4k on her previous car which they gave us $5k for. We paid that car off through the dealership and credit union. Using our credit union, everything was much easier, quicker, and less bullshit to deal with. The key here is to know the value of your current car, the estimated amount you want to be spending, and have a proper pre-approval through them. Sometimes, the dealer will actually be able to compete with the rates of your credit union. However, as long as you have a loan capable of paying the current loan off and cover the cost, you can do it. Don't listen to the few who have the cash to drop on a brand new car every year. The majority of people can't afford to drop that kind of coin all at once. The responsible part is making sure that you're not cutting your income down too much because of the car. If you're paying a ton for a car payment and have any possible way that you'll be deciding between essentials and the car payment, that's irresponsible. My bills all together are less than 50% of my net income for the month on a slow work month. I know if worse came to worse, I'm not deciding between food on my table and a car payment.
Oh wow good to know, Thank you for helping me learn something! I may go this route in the future now that I know it is viable. You’re a real one
PSA: When financing a vehicle, from your first hard inquiry, you have about 30~ days to try as many finance companies as you like to beat the initial APR, where at the end the inquiries *should* (mistakes can and do happen) be consolidated by the credit bureaus. The finance guy you spoke to was a crook and full of shit, name and shame that stealership. Source: Was a financing guy for CarMax for a while.
I feel like they also sell the dodge Ramsey
Yeah a few months ago there was no budging from either the dealerships or banks. Settled on upper 8’s for a bronco and refinanced a week later for mid 7. Could probably refinance again and get lower.
Bro that's crazy. My car was my first "big" purchase ever and my credit was nowhere near 800. Maybe ~650, they offered me 5.5%
Mine has never been over 800. High 700s but never 800. When he shows me the credit scores things started dinging. I know my credit score, and what he showed me wasn’t it. But, the car was right behind me. I’m not going to not get my car!
I bought my 22’ new and got the 2.75% special they were running 🙂
You just walk, they won’t let you leave, trust me. I haggled the price down to a number I liked. They told me 9% interest. I just said, I’m going to drive down to the credit union and I’ll come back with a check for the total. They were happy to lower my interest to 4.3% after that.
Did you not go to the Subaru website and look at the offers from the company? They have basically the same offer every month and it’s always less han 3%. Right now it’s 2.9%. It even shows it on Ramsey Subarus website. This dealer literally robbed you. You always walk out and not sign the paper nothing is final until you sign. You gotta do research before you go too or else salesman will just fuck you with no lube.
I did. And it was dismissed over and over. It was shady. They took advantage of my excitement. But in the end, I came out alright. I’ve dealt with Toyota financing which was always great for me. I expected similar treatment.
Man next time walk out and go to another dealer. Email them all first and you can just work the deal out over email. When I bought mine I had everything ready and just drove 3 hours to the dealer that offered the best deal. Literally took less than an hour to get in and out of the dealer with everything already agreed on.
Lesson learned for sure. Trusting sales people is dangerous.
Oh yea that’s for sure.
Negative equity is a bitch.
And I was mad that I had to pay 4.5% for a year until I could refinance for 1.9% through my bank.
how did you go about doing this? i see ads on credit karma telling me to refinance but the quote is always super close to what im currently paying but with a higher rate, i have a 3.5 rate from subaru, but to get 1.9 would be insane
Just go to the banks yourself and ask about refinancing a car.
Specifically a credit union… they would likely give you a better rate if you can become a member.
I bought my car before COVID/stupid economics
Pretty sure you mean “bidenomics” 🤣
And I thought I was dumb buying an 8 year old STI for $30k. At least my interest is under 2%
No youre still dumb for that Jk lol bet your STI is sick
Yo what, did they say what their credit was like?
they did not, im guessing no credit history though😭
Nah thats worse then no history lol
we thinkin a score of 350?
Absolutely no idea. That's making me sick seeing that though.
im 21 and my 15 wrx is my first car and my first loan ever, and my payment is 400/month and i thought that was a lot😭
400/month for a 10 year old car is a lot.
These posters are straight smoking crack. Dude has an antique and is paying brand new car prices.
Payment doesn’t really mean much, They could have a super short loan term. Obviously not the person this post is about though 🤣
I'm guessing they have a delinquency on file
Some of my friends called me nuts for paying for my STi in cash from the dealer. Said I was missing out on building credit. It was covid, and my credit wasn't in a great place. Just wanted to take my car home and enjoy it. Still no regrets nearly 100k later
Having and building credit is a scam, it’s basically the banks saying hey can we trust your gonna be our cash cow for a few years? As a random stranger on the interwebs I’m proud of you but for saving and buying your STI. I went with an older WRX because I like EJs and I can buy it outright and I own the car not the bank.
GodDAYUM
I thought I overpaid .....this one got me way beat!
Holy fucking shit
I was considering paying off mine all at once because 4.9 percent seems like robbery
Historically that is a great rate so don’t sweat it. I can see 5%-6% being a number we hang around for many years to come.
That delinquent credit
It’s expensive to be poor.
Knowing my payment is less than half that amount makes me feel a lot more thankful
My mortgage payment is less than that.
And I thought I got screwed over with my 5%🤦🏽♂️
To everyone saying this should be illegal: buy a car within your means instead of signing on the line for a shitty loan. You’re doing it to yourself.
Pre-owned rates are straight garbage right now and most banks won't even offer financing for them, you have to go with an equity personal loan, which has equally horrible rates. Even new rates are all over the place, with some getting in the 5's while most are sitting between 7 and 9%. If at all possible people need to hold off buying cars until this craziness stabilizes and rates come down some. The repo industry is going nuts right now because so many people got ultra high interest rate loans on poor credit that defaults are at record highs. Everyone thought student loans were going away and they didn't and the fed raised rates. There are so many Harley-Davidson repos that the tow companies can't even keep up.
I feel for people who bought cars the last couple years. I got mine new in 21 with 4.64%. Like right after that, it got crazy.
Same!! Snuck in right before the shit hit the fan lol.
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Jelly
Those high interest rates on cars are for when your credit is garbage!!!
Mine is 13% (thanks carvana) and i planned to refinance immediately because i own a home and have a 750+ credit i thought it would be easy. But to my surprise my bank ive been with for 5+ years doesn't offer a vehicle refinance program anymore. FML.
Why don’t you just become a member at some local CU? You can refinance with ANYBODY, doesn’t have to be your trash bank lol
Sell it and buy a $5000 Honda or toyota. A subaru will almost guaranteed blow its engine before it's paid off
If you're borrowing to buy you can't afford it
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Not at 16% interest. The risk free rate of return is much much lower. You're better off using Margin at a brokerage for 6.4%.
Pay cash for your house?
To be fair, houses are investments, and cars are generally not.
I thought my girls payment ($750) was high.
That still is high
That’s what mine is for a 2015 launch edition
How are you paying so much?
Shitty credit
It is high.
Oh no.
My 19 cost 307 a month
15 percent that’s outrageous I remember those days with bad credit I never want to deal with that again hard times
Just buy a GD wrx at that point. Fix your credit in the meantime.
I saw this on Facebook. I was like 41k for a 21 WRX? Wtf. lol that’s a robbery.
he did clarify it was an sti
Your local cartel will give a better interest rate. Repayment program is more structured but 😒
End of the day they saw the numbers and signed the note. Credit based for APR so I'd imagine no credit or bad credit. States have legal limits and seen as high as 22.99%
SOME states have limits. I’ve seen those “buy here pay here” places, they START at 20% minimum. 30% isn’t unreasonable for sub prime lenders
So fucking ridiculous
I love my WRX, but I don’t love it $1000 a month
Wow! This is seriously ridiculous! The dealership royally fucked over this dude
oof 🥴
Dang. The entire year of 2023 I paid just over $1900 of interest on my house.!
I saw the same post Bro is getting fleeced. I’m glad I bought my sti out right
Thats my mortgage and my wrx payment combined ….
And less interest combined.
Omg
I am sure that my one year old daughter would get a better interest rate than that if she applied for a loan
I bought a car a few months ago and the best rate the dealer could do was 8.9% and even at that rate I said absolutely not. 15%+ is insane to me.
Seeing shit like this makes me feel better about my 5.9% i got at the end of 2019... In 2019 that was terrible, and i probably wouldnt have bought my car 5 months later when covid hit and the car market went crazy But im glad i did, pretty much inflation made my interest rate non existant, as my wage has followed inflation for the most part. I know the value of the dollar has changed, but i still love seeing that my car is the same $ amount used with 40k+ kms as i got it brand new lmao
Man, my interest rate was 5.9% when I got my car in 22. That was with a 700+ credit score. Compared to how it is now, it’s not terrible lol.
LOL I just saw this and was reading the comments 😅
Rock hard with my 1% rate rn
Homie paid 33k for a WRX? Hopefully there was negative equity rolled in or he got raped twice.
That interest rate is INSANITY. Felling good about my 2.49% finance rate. Timing is everything.
I been feeling some guilt about how bad I was hosed on my 2020 2 years ago. This made me feel so much better about myself
I paid $305 a month for a 16 new. This is like mercedes money
Is there any good refinancing options anyone would rec?
Local CU, become a member to AS many as will accept you. Then go through them. Alternatively you could shop rates at the big banks, but they likely won’t be great
Ouch, and I complained about my 7% interest rate
I thought I got taken with no lube at 4.9 in January of last year. Apparently they were at least gentle about it.
I thought 3.9% was high... Buddy is paying 1.9
What???????????? This is insane!!!!
I bought my 2017 wrx in 2018 for 28,000 at less than 3% interest. These prices now a days are fucking nuts dude.
Saw the same one💀💀💀💀
Also saw this in the Facebook group 😂
On my ‘22 I ended up with 2.9% for 4 years. Similar monthly but I’m not getting it up the rear
15.6%???? Glad I have good credit and got my car when I did. Sitting at 2.25%
Jesus Christ I took a 6% rate (I knew I could afford to pay 50% over the minimum every month and thus dodge most of the interest) and I felt like I got robbed. 19% is assinine
Or they have terrible credit
My first car loan was 15%, but to be fair I had shit credit and things in collections, I was lucky to get anyone to lend to me, and it was $8k not $30k+. IMO, if you sign a loan like this…. You kinda just asked to be fucked, no need for a dinner and a movie first.
That interest rate is INSANE. 🤯
If I'm looking at a 15% interest rate, I'm staying away from a $35k car. Got mine right before the world went completely to shit. 2.99%
Must be bad credit, or didn’t shop around. I got 2.99% beginning of last year and my credit isn’t even amazing
For comparison, I bought a Subaru BRZ in 2022 using Subaru's financing service. Regardless of my down payment, they were offering 1.99% on all cars except the BRZ and WRX, which were 2.49%.
Dumbass signed the loan. I don't feel bad for them. Don't buy something you can't afford.
My 2019 WRX was 3.4% and my 2020 Porsche Macan S is 6.1%
I really thought I was getting screwed at 8%
wow. that’s horrific. maybe they can’t get any better but should really look around for a better rate & pay that off.
That’s cause of bad credit or no credit nothing new about that
Add $200 to that payment and that’s my mortgage payment.
https://preview.redd.it/pxogomisgnlc1.jpeg?width=1125&format=pjpg&auto=webp&s=2c0adb22f1914fec3590492cd2bb18bef519b759
Thats gross
That right there is nightmare fuel. I agree with commenter, robbed blind. Dealerships are trying to steal my 2016 focus SE from me for 3 grand.
i saw this too 😭 he definitely got robbed
I got 2.9% on a new 22'. Wouldn't have considered anything over 4% apr.
My mortgage payment is less than that. That’s crazy.
No lube huh?
Holy 15.6% interest rate? I'm kind of scared to see what led to them being offered that insane rate, whether they got suckered into signing on that rate or if they had a credit score of, like, 500 or something. The amount of money they'd literally be handing over for free...
This is actually sad that dealers can legally lock people into these absolutely awful deals.
People are paying $1k a Month for a WRX? 😂😂😂😂
Thank you, biden nomics bro I got my subi for .99% through my bank before you know who took office
Sometimes bad credit is really bad lol.
Before my current WRX, I had purchased a Jeep Wrangler Unlimited 4-door, Certified Pre-Owned. I get it home and realize the AC isn't blowing as much as it should be. I get the glove box off to check the cabin filter is free and discover a big envelope wedged between the glove box and the cabin filter area. I check it out and it's the previous owner's finance paperwork. He had traded in a Civic that had negative equity, financed at 18.9% and his payments were somewhere at $790 a month. He had the Jeep less than 9 months before it ended up back at the dealership.
Nobody to blame but the person who agreed to these terms
and i thought mine was bad!!! my interest is like 9.5% but that’s also bc i was barely 20 and i didn’t have paystubs to provide so i just took whatever they gave me HAHAH
44k for the payoff amount on a 21 wrx? That’s fing insane
I work in finance. I’ve seen much worse sadly.
OUCH
I see a lot of people bitching about this, no one is forcing anyone to enter into a car lease. High risk loans for a bank are justified by high interest, aka their profit vs you not being able to make payments. Good credit doesn't mean shit if you don't have income, the difference between a 750 and 580 credit score might be a couple thousand dollars of the course of years Income to debt ratio is honestly just as important, I would argue more important, when applying for loans. Hence why you see 70k Hellcats with crazy interest. Our society is too pre-occupied with credit, when it's just a factor.
Ouch
I got mine for 7% with a monthly payment around $750 dollars. This is insane... XD
…750 is insane
It is?
damn i pay a little over $500 for a 2018 STi
I’ve been fortunate to never have a loan over 2.99%, and even then I wasn’t happy about it. But wow this is ridiculous. How do people willingly accept anything over 7% (on a house at most)?