I funded the car for $15,000 with an APR of 14.89%, but then I got a call saying my rate was 15%. what do i do?

Funding a car at high interest rates can be frustrating, but what’s even worse is that you’re promised to have a certain interest rate through your car dealership and stick to something else.

It is called yo-yo finance. This is a deceptive tactic used by car dealers, allowing the car to be driven out of the lot before the funding is fully confirmed. You will then be notified that your loan will collapse and you will have to accept less favorable terms to complete your purchase.

You may regret getting a $15,000 car loan at an annual rate of 14.89% (APR). But does your APR appear to be even higher and need to re-sign the document?

Should I move on or should I use this opportunity to get out of my loan?

The average user car loan fee for the first quarter of 2025 was 11.87%. Experian. However, the average of customers with deep subprime (credit scores of 300-500) and subprime (credit scores of 501-600) were 21.58% and 18.99%, respectively.

Considering that you have bad credit, the rate you were originally offered (14.89%) is not surprising. However, this purchase does not mean that you have made a wise financial decision. I’ll explain that in more detail later.

In fact, the actual rate appears to be 15%. This means that the dealer may be engaged in yo-yo fundraising. Or it could be just a case of poor communication.

Usually, Yo-Yo funding will make a huge difference between the original APR provided and what the dealer is trying to stick to you. Here, the difference here isn’t so incredible. Dealers also typically use yo-yo finance to invite buyers at very low prices. APR of 14.89% is not that competitive.

Please check the documents you signed. It is possible that the sale is not final and the dealer is saying that the terms can be changed. In this case, you will need to resign from the document with the new APR to maintain the car.

You may also be entitled to return the car instead of paying a 15% APR on a loan.

This can actually be a great opportunity to get out of a bad deal that could hurt you financially. It may be time to consider other options, such as returning the car and saving for a car that can be paid in cash, or saving to pay a bigger down payment. The 14.89% rate is very high because you don’t want to pay for a car you can’t afford.