Car Financing
 

So I'm thinking of buying a car in the next couple of months. I can get a loan at the University's Credit Union for $25,000 at 6.65%, 72 month period.

Is that a good rate or should I just get financing at the dealer or another bank? Anyone have any good insight on this?

(I live in Southern California).

Thanks.

Personally, I think that you should do a little shopping, most likely online. The rate itself seems on the low side to me, but I'm comparing it to some other loans I have and not specifically to a car loan.

Also, I would be a little surprised if the rate for your credit score varied much from area to area, unless someone is desperate to sell a car.

While I haven't bought a new car in two years, if you're buying a new car I'm pretty sure many dealers and/or car manufacturers are offering substantially lower rates than that as incentives to buy. If you're buying a used car, rates will be higher and that rate you posted might be pretty good.

I agree with BadNick. That is a very good rate for a used car. USAA can probably beat the rate but not by much.

I would re-think seriously about a 6 year loan. For the first four years, you are likely to "upside-down" (owing more on the loan than the car is worth as a result of depreciation).

I would suggest a cheaper car....one that you can afford with a 3 year loan.

Some good advice here on How to avoid drowning in car debt

The rate is very good.

I wouldn't go for a 6 year loan though. I wouldn't go any past 5 years. If you have to take it out to 6 years, you probably can't honestly afford it, anyway. If you can, get even a 4 year auto loan.

It's very unlikely anyone can beat the interest rate, unless the dealership is very large, and has lots of opportunities to finance - my girlfriend got her car recently for 5.25% at Bank of America from the dealership.

As someone who sells cars that rate is pretty good for a 72 month loan. Unless you have absolutely perfect credit you probably won't be able to do any better at the dealership or a public bank. Credit unions almost always have the lowest rates.
There are some financing deals on cars right now but they tend to be only on very short term loans. I think GM's deal right now is 7.9 for 72 months on most vehicles.

While it is always better financially to get shorter loans you might not be able to afford the car you want if you went four years. If you plan on keeping the car a long time anyway its not a problem.