My car got repo'd right before I could pay for it. I havent been working and I finally started getting work and it was repo'd a second time a few days ago. They say I need to refinance with another company and pay it off. Do you think if I go to them with $2000 they will refinance a $14000 loan for me? My score is 464
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MovingForward_2012 wrote:
Your score is very low. In order to refinance, you need good credit. People usually refinance after their credit score goes up and they deserve a better rate. It is typically not done just to transfer to a different lender. I think you are going to have to stay with your current lender until your score improves.
That isn't accurate honestly; while I would agree people tend to refinance auto loans to get better interest rates, that isn't the situation here: the lender of record on the current auto loan has decided that they will not accept anything less than full payment on the current loan if the OP wishes to keep the car.
In this situation, quite likely the refinance is going to be at a worse rate than the initial loan; however, it's still the only option in this situation... namely, getting some other lender to pick up the marker.
About the only lender I might even think of trying might be Santander/Roadloans as I know they'll do auto-loans post-repo on a credit report, but there's a non-zero chance you (the OP) is going to have to bring cash to the table to get it done, if it can be accomplished at all.
Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)Current Score: EQ 648, Wally TU 673, EX 687 (06/15/13)
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Revelate wrote:
MovingForward_2012 wrote:
Your score is very low. In order to refinance, you need good credit. People usually refinance after their credit score goes up and they deserve a better rate. It is typically not done just to transfer to a different lender. I think you are going to have to stay with your current lender until your score improves.That isn't accurate honestly; while I would agree people tend to refinance auto loans to get better interest rates, that isn't the situation here: the lender of record on the current auto loan has decided that they will not accept anything less than full payment on the current loan if the OP wishes to keep the car.
In this situation, quite likely the refinance is going to be at a worse rate than the initial loan; however, it's still the only option in this situation... namely, getting some other lender to pick up the marker.
About the only lender I might even think of trying might be Santander/Roadloans as I know they'll do auto-loans post-repo on a credit report, but there's a non-zero chance you (the OP) is going to have to bring cash to the table to get it done, if it can be accomplished at all.
Most subprime lenders only finance, not refinance. That is why I said you need good credit or at least decent credit. If OP gets refinanced with a 467, I will fall over in my chair.
MovingForward_2012 wrote:
Revelate wrote:
MovingForward_2012 wrote:
Your score is very low. In order to refinance, you need good credit. People usually refinance after their credit score goes up and they deserve a better rate. It is typically not done just to transfer to a different lender. I think you are going to have to stay with your current lender until your score improves.That isn't accurate honestly; while I would agree people tend to refinance auto loans to get better interest rates, that isn't the situation here: the lender of record on the current auto loan has decided that they will not accept anything less than full payment on the current loan if the OP wishes to keep the car.
In this situation, quite likely the refinance is going to be at a worse rate than the initial loan; however, it's still the only option in this situation... namely, getting some other lender to pick up the marker.
About the only lender I might even think of trying might be Santander/Roadloans as I know they'll do auto-loans post-repo on a credit report, but there's a non-zero chance you (the OP) is going to have to bring cash to the table to get it done, if it can be accomplished at all.
Most subprime lenders only finance, not refinance. That is why I said you need good credit or at least decent credit. If OP gets refinanced with a 467, I will fall over in my chair.
Subprime dealer lenders will only finance (WFDS).
Subprime auto loan originators, Santander, even Chase, that's not the case.
https://www.santanderconsumerusa.com/products/auto
A refinance vs. purchase on a used car is really no different from a financing perspective in my estimation. I agree it may not be possible, but it is not impossible either and it's worth asking the question as the only other option is to surrender the car and likely go pay cash for a beater as I think someone suggested.
Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)Current Score: EQ 648, Wally TU 673, EX 687 (06/15/13)
Goal Score: 680 in all three (01/01/14)
Take the FICO Fitness Challenge
Revelate wrote:
MovingForward_2012 wrote:
Revelate wrote:
MovingForward_2012 wrote:
Your score is very low. In order to refinance, you need good credit. People usually refinance after their credit score goes up and they deserve a better rate. It is typically not done just to transfer to a different lender. I think you are going to have to stay with your current lender until your score improves.That isn't accurate honestly; while I would agree people tend to refinance auto loans to get better interest rates, that isn't the situation here: the lender of record on the current auto loan has decided that they will not accept anything less than full payment on the current loan if the OP wishes to keep the car.
In this situation, quite likely the refinance is going to be at a worse rate than the initial loan; however, it's still the only option in this situation... namely, getting some other lender to pick up the marker.
About the only lender I might even think of trying might be Santander/Roadloans as I know they'll do auto-loans post-repo on a credit report, but there's a non-zero chance you (the OP) is going to have to bring cash to the table to get it done, if it can be accomplished at all.
Most subprime lenders only finance, not refinance. That is why I said you need good credit or at least decent credit. If OP gets refinanced with a 467, I will fall over in my chair.
Subprime dealer lenders will only finance (WFDS).
Subprime auto loan originators, Santander, even Chase, that's not the case.
https://www.santanderconsumerusa.com/products/auto
-refinance
A refinance vs. purchase on a used car is really no different from a financing perspective in my estimation. I agree it may not be possible, but it is not impossible either and it's worth asking the question as the only other option is to surrender the car and likely go pay cash for a beater as I think someone suggested.
Trust me, if this truly happened frequently for those with bad credit and a repo, to just get their car back because they refinanced. Do you realize how many people tried to make a payment right before their car got repoed and the car got repoed anyway and they had to pay the full amount to get it back and WISHED someone would refinance their loan so they could get their car back as they did not have the full loan amount to pay off the loan? Most cars repoed, stay repoed. I am not going to sugarcoat the real issues.
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