Am I getting a good auto loan rate?

[fartjuice]

I'm taking out an auto loan for $32,000. My credit union has offered me 5.5% for 72 months. Is that a good rate? I have looked at several other places and they all want a minimum of 6.9%. My rate seems too good to be true. Is it? By the way, I have excellent credit (FICO over 800 with NO debt).Thanks!It's a new car, but the there are no special financing offers because it's in high demand. I've read all of the fine print, and it seems fine. It's 5.5% 72 months and the payments are $510.?? a month.Actually Kate, the insurance is quite low. And $500 is high for a car payment??? That't not even 10% of our monthly income (and we have no other bills. Not even house payments) I think we can swing it.We don't want to pay cash on it because we are actually making more than 5.5% on our investments. That and we can still invest what we do, and pay almost triple the monthly payment and have it payed off quick. We've spoken to our financial advisor about it.

[YakHaircrazy]

That's a really good rate.

[jamocha almond fudge]

Absolutely a great rate. It's hard to find good rates like those these days

[Jos]

It's a good rate if it's a used vehicle. If it's new, usually they offer 0% financing.

[grgyssf]

that does seem to good to be true read the fine print

[markpwilms41m]

5.5% is an excellent rate, but I have another idea: Why don't you save the money, and pay cash for it. You could save almost $20,000, and you would have the satisfaction that you have now: that you don't owe anyone anything. I am almost 43, and have never had a car loan. I have always paid cash for my cars, and have no regrets.

[sami_sam]

You said something about making over 5.5% on your investments and thats why you wont pay cash for it, but just something else to think about: inflation rises at about 4% a year. So unless you are really making over 9.5%, you wouldnt be benefiting from that. I'm suprised your financial advisor didnt tell you that! That was one of the first things mine pointed out to me...

[mikeydee3937]

That's a good rate. But as others have said it's for 72 months. This is fine, but just pay extra on the months that you can afford too. Also, with your credit score comes greater bargaining power on your side. Use that to your advantage next time and demand certain incentives. Because I guarantee you that the dealership knows that you could go anywhere else and get just as good if not better deal and they we'll usually lower overall costs and rates to keep you on there lot. Congratulations and good luck with your new car!!