Hello all, Is there a set limit of interest that can be charged to a new car loan for a first time buyer with a not so good credit rating living in New Jersey. If in the event there is do you know of a link that will back it up so I can research it,

aqua@home

Hi, I don't think there is any limit to the amount of interest that can be charged on any new or used car anywhere. It seems to me that's why you have to sign papers and agree, because everyone's finance deal will be different. Unfortunately with poor credit, companies charge more and you sometimes have to take it because of lack of options. The good thing is these companies can help you to rebuild your credit. As long as you stay on top of this loan, you will get your credit rating back. It's unfortunate that the people who really need to keep the most of their money can't because they are always paying more interest. If possible it would be better to save up, even for a junker so you can get to work and whatever, then save for your new or used vehicle. It can take a while but it's well worth it. You could save for 2 years and pay cash or pay 5 years on a loan.

fredg

HI,
The limit, if any, is usually the average of the new car loans in any particular area.
Dealers can charge anything they want, in reason.
Personally, I would talk with my bank, if you have a checking account or such. If not, go to a bank and talk with a Loan Officer. You can get a good idea of the interest amount for a new or used car loan, in your local area.
New cars usually go from 5 to 6 years!!!
I only buy "previously owned cars" or used cars myself. Last new one was back in 1980. I find that a used car, 50,000 miles or less, from a reputable Dealer or a reputable Used Car place, is cheaper, and if you look around, can find some that "look new". Course, I keep mine for about 10 years or so!

lilfyre

If you have bad credit, they kill you on interest, I have been told that new cars have a limit that they can charge you. (around 15%) used cars they can go well over 23.5% which would kill us, and for what I can afford a month, with an interest rate that high, I can only get a car that is under 8,000 and it would take me 5 years to pay it off, and most cars at that price are over 5 years old which a loan company will not give you credit because when you pay it off it will be 10 years old, this is why I was looking for the max on interest rated on new cars. If I had credit I would not be driving a truck old enough to with 300,000 mile on it and to top that a tree fell on the bed,


thanks all for your answers (O: