Overheard a guy at the coffee shop say he's paying 18% on his used car loan

He was bragging about getting approved fast but didn't even blink at that rate. I just sat there thinking how much that extra interest adds up over 5 years. Has anyone here ever walked away from a loan because the APR was too high?

3 comments

3 Comments

lewis.finley1mo ago

That 18% rate is brutal, I feel for the guy. I walked away from a loan once when they hit me with 15% even though I needed a car bad. Sometimes waiting a bit and saving up more is better than getting stuck with payments that eat you alive.

danielnelson1mo ago

Hang on though, sometimes that 18% is the price of not getting stuck worse. If you need a car to get to work and you're already drowning, waiting six months to save up might cost you more in lost income than the extra interest. I've taken a 16% loan before because my clunker literally died and I couldn't miss another paycheck. It hurts but sometimes you're just buying time until you can refinance.

patricia_gonzalez1mo ago

Yeah I had a buddy who took an 18% loan once, and @danielnelson's right, sometimes you just gotta.