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Yahoo
07-06-2025
- Automotive
- Yahoo
I just financed a car for $15,000 at 14.89% APR — but then got a call saying my rate is now 15%. What do I do?
Financing a car at a high interest rate can be frustrating, but what's even worse is being promised a specific rate through the car dealer and then being stuck with a different one. Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) It's called yo-yo financing, a deceptive tactic used by auto dealers that allows you to drive the car off the lot before the financing is fully finalized. You are then informed that the loan fell through and that you must accept less favorable terms to complete the purchase. You might have regrets about taking out a $15,000 car loan with a 14.89% annual percentage rate (APR). But it looks like your APR is even higher and you need to re-sign the documents? Should you proceed, or use this opportunity to get out of the loan? The average user car loan rate was 11.87% in Q1 2025, according to Experian. However, the average for customers with Deep subprime (credit scores 300 to 500) and Subprime (credit scores of 501 to 600) credit was 21.58% and 18.99%, respectively. Considering you say you have bad credit, the rate you were offered at the start (14.89%) isn't surprising. However, it doesn't mean you made a smart financial decision with this purchase. More on that later. Now it seems the actual rate has come through at 15%, which means the dealership may be engaging in yo-yo financing. Or, it could just be a case of poor communication. Usually, with yo-yo financing, there's a substantial difference between the original APR offered and the one a dealer tries to stick you with. Here, the difference here isn't so tremendous. Also, dealers commonly use yo-yo financing to lure buyers with super low rates. A 14.89% APR isn't that competitive. Review the paperwork you signed. It could be that it says the sale is not final and the dealer can change the terms. In this case, you would have to resign the documents with the new APR to keep the car. You probably also have the right to give back the car instead of paying a 15% APR on your loan. This could actually be a great opportunity to get out of a bad deal that could hurt you financially. It may be time to give back the car and consider other options, like saving up for a car you can pay in cash for or saving to pay a larger down payment. You don't want to be stuck making payments for a car that you can't afford, and a 14.89% rate is quite high. If you're committed to keeping the car, you'll have to decide if it's worth paying the slightly higher rate. You may be able to refinance later. You can also find alternative financing for the car instead of going through the dealer. If you shop around, you may secure a lower APR. Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says — and that 'anyone' can do it A lower APR means lower interest costs and monthly payments. So, always do what you can to secure the lowest rate possible. One of the best ways to do this is by boosting your credit score. According to Experian, the average used car loan rate for Prime (credit scores of 661 to 780) and Super-prime (credit scores of 781 to 850) buyers was 9.06% and 6.82%, respectively. 'There's no minimum credit score required to get an auto loan. However, a credit score of 661 or above … will generally improve your chances of getting approved with favorable terms,' says the credit bureau. To boost your credit score, aim to pay all debts on time and try to keep your credit utilization as low as possible. Credit utilization is the percentage of total available credit that you're currently using, and is a key credit score factor. Paying down credit card debt can improve your utilization. It's also important to check your credit report regularly for mistakes. You can request a free copy every week here. Also, shop around when you're taking out an auto loan, and don't assume your dealership has the best rate to offer. Financing an auto loan through your dealership may be convenient, but you're probably better off reaching out to banks and credit unions to see what rates they offer. A good place to start is with a bank or credit union you already have a relationship with. Choosing a shorter auto loan term can lower your interest costs, assuming you can get the same interest rate or better. You'll have a higher monthly payment, but you should pay less interest by paying off your car loan more quickly. Finally, you can also save on interest by taking out a smaller loan, by providing a larger down payment up front, or purchasing a more affordable vehicle. Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you'll need a substantial stash of savings in retirement Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. This article provides information only and should not be construed as advice. It is provided without warranty of any kind. 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Reuters
03-06-2025
- Automotive
- Reuters
China car dealers urge automakers to stop dumping inventory on them
BEIJING, June 3 (Reuters) - Chinese auto dealers on Tuesday called on automakers to stop offloading too many cars on dealerships, as intense price wars are pressuring their cash flow, driving down their profitability and forcing some to shut. The proposal came on the heels of an official call over the weekend for the auto industry to halt bruising price wars. Conditions facing car dealers have become "even more severe" amid a new round of hefty discounting since the second quarter, the China Auto Dealers Chamber of Commerce said in a statement. Automakers should set reasonable annual production and sales targets and should not transfer inventory to dealers and force them to stockpile cars, the chamber proposed on Tuesday. The cycle of payments to dealers should be shortened and dealers "shall not be coerced to withdraw from the network and close their stores in the name of optimising network channels," it said. A large dealer of Chinese electric vehicle maker BYD's ( opens new tab cars in the eastern province of Shandong went out of business with at least 20 of its stores found to be deserted or shut, local media reported last week.
Yahoo
03-06-2025
- Automotive
- Yahoo
China car dealers urge automakers to stop dumping inventory on them
BEIJING (Reuters) -Chinese auto dealers on Tuesday called on automakers to stop offloading too many cars on dealerships, as intense price wars are pressuring their cash flow, driving down their profitability and forcing some to shut. The proposal came on the heels of an official call over the weekend for the auto industry to halt bruising price wars. Conditions facing car dealers have become "even more severe" amid a new round of hefty discounting since the second quarter, the China Auto Dealers Chamber of Commerce said in a statement. Automakers should set reasonable annual production and sales targets and should not transfer inventory to dealers and force them to stockpile cars, the chamber proposed on Tuesday. The cycle of payments to dealers should be shortened and dealers "shall not be coerced to withdraw from the network and close their stores in the name of optimising network channels," it said. A large dealer of Chinese electric vehicle maker BYD's cars in the eastern province of Shandong went out of business with at least 20 of its stores found to be deserted or shut, local media reported last week. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
03-06-2025
- Automotive
- Yahoo
China car dealers urge automakers to stop dumping inventory on them
BEIJING (Reuters) -Chinese auto dealers on Tuesday called on automakers to stop offloading too many cars on dealerships, as intense price wars are pressuring their cash flow, driving down their profitability and forcing some to shut. The proposal came on the heels of an official call over the weekend for the auto industry to halt bruising price wars. Conditions facing car dealers have become "even more severe" amid a new round of hefty discounting since the second quarter, the China Auto Dealers Chamber of Commerce said in a statement. Automakers should set reasonable annual production and sales targets and should not transfer inventory to dealers and force them to stockpile cars, the chamber proposed on Tuesday. The cycle of payments to dealers should be shortened and dealers "shall not be coerced to withdraw from the network and close their stores in the name of optimising network channels," it said. A large dealer of Chinese electric vehicle maker BYD's cars in the eastern province of Shandong went out of business with at least 20 of its stores found to be deserted or shut, local media reported last week. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
