32.99% is abnormally high, however you stated that he placed a downpayment on the car and it is older. Both of those two things you mentioned do not factor into his interest rate. I could be mistaken, but the interest rate is based soley on the credit score (or no credit score.) People with bad or no credit obviously have much higher interest rates than people with very good credit. For example, when I bought my 13k dodge ram a yar ago, my score was only like a 519 or something bad like that and I received interest around 17.9% . As of now I have my score up to a 638 FICO (Middle Score) and i was able to have the interest on my truck lowered after they ran my credit and not its only at 7.9%. The 32.99% is obviously ridiculousy high, however I'm pretty sure lenders can charge whatever they want, the client just doesnt have to take the offer if the interest is outrageous. What your cousin needs to do is pay his truck on time EVERY month (no late payments at all) and also open up a SECURED CC and keep the utilization % low on that (10-15%) and pay it off when it posts to the account. This will help build them good credit for the long run and in 12 months or so he could have his truck either re-financed or have the interest lowered with a better score.
Let me revise my statment above slightly: The Interest Rate is not only based solely on the credit score, but also the credit history. Didnt want to leave that part out haha
I would definitely talk him into a SECURED CC so he can get that credit history going. He may not like that you have to put a deposit down on the scured cards in order to use them, however the deposit is fully refundable if he pays on time and doesnt owe any money. He will also more than likely get moved into an UNSECURED CC if he does well with his secured card. No credit history is not good, but one thing he has on most people is he doesnt have any BADDIES on his history yet. Make sure he keeps it that way lol...They are like nagging little flies that wont go away haha
Never heard a auto at 32.99%?
Reads to me like they saw him coming. Impatient, desperate, and willing to buy an extended warranty.
It will be good if he can have 12 months reported of payments on the car before he pays it off. That will help build the history. Also like someone said, open up a secured CC, and in about 2 years, he'll have a great score and minimum history to play in the credit world.
So a few things come to mind.
1. He clrearly had some type of credit (most likely old baddies) because he had a score.
2. This sounds like a buy here pay here type of loan... should have considered Roadloans (still might be worth checking at refinancing) I have never heard of a interest rate that high that isn't from a buy here pay here.
3. he needs to address what's going on with his credit reports, can he dispute wrong things, can he pay anything he needs to?
4. get a secured credit card are two:
4a. Capital One - do the pre-qual right on the website and see if he gets offer for something or apply for secured.