Girlfriend’s auto loan at 29% APR

My partner is a Japanese international student whose visa expires in April of next year. She needs a car to travel now that she has a new job. We went to the showroom and paid $7,500 for a 2016 Hyundai Sonata. She will finance the remaining $6,000 after making a $1,500 down payment, but according to them, the annual percentage rate (APR) for first-time purchasers without co-signers is 29%. Isn’t this nonsense? Her credit score is 707, which is far too high. We intend to phone a few credit unions to shop around for better vehicle loans. In her case, what percentage APR is appropriate, and should she consider refinancing?

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Please do not do that. No, no. Did I say “no”?

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Yes, it seems like you could find a better solution. However, considering her visa status and the uncertainty surrounding her ability to remain in the nation after the next extension, obtaining a vehicle loan might come with a higher interest rate to protect the lender in the event that she is unable to repay the debt.
This is one of the regrettable facts of being a foreign national living overseas, having lived there. They are not acquainted with anyone else who might apply for a loan and then disappear. I’ve heard a number of tales of foreigners racking up massive credit card debt or putting in applications for auto loans only to decide later that they didn’t want to prioritize that.

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Wow, 29% APR is super high! It’s great that you’re looking around for better options. Don’t settle for that 29%! With some research and effort, you should be able to find a much better deal for your girlfriend’s car loan.

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