High car loan interest rate

lordmountararat

£5800 over 5 years at 39.4% APR would mean total payments of £19511.20, so £13711.47 in interest. It is much better to save up for things.

macman

To avoid all doubt, your son's loan is 39.4% APR. He's paying that on the balance owing every year, not over the full term. That's why no one can answer your question without knowing the term of the loan.

molerat

biscuit1_2 said:

usury

Usury means lending money at exorbitant interest rates

A loan at that rate is just deemed sub prime for those with a poor or no credit history.  Standard overdraft rates are around 39.9% so not considered exorbitant.  PayDay loans that charged 1200% were a different matter.