Auto Loan Debate

[Anonymous]

Thoughts on this thread:

1- If you were in a Bad Credit situation only a year ago, Even though you have improved your score I cannot see that all negatives/evidence have been purged from your bureau history which can easily be hindering you in the financing stages.

2- A second owner on a car rarely means the car is considered "good" condition. There are probably chips, scratches and dents you do not see casually.  Rest assured they are there. rest assured if the dealership goes to sell it the potential customers will see them and dicker over them.

3- There is no Kelly Blue Book store in Tacoma where all Kelly Blue Book prices are met and kept. KBB is a "Guide" from which market variables influence the values much more. Try to sell a convertable in January in Cleveland and see how close to Kelly you can get. Also the place you are trying to trade the car in can influence the trade in value. A Ford dealership may be able to give you a better trade in on a F-250 Diesel then a Mercedes dealership.

If the Finance manager came to you with 2K less then you expected and you are still modeling your transaction on that 2K, that may be a huge obstical in your way. Could there be leeway? yes but I doubt 2K. If she is valuing the car at less then she will need more cash from you to make the difference.

4-Private party sales in General will net you more then a trade in, but you are doing the work cleaning, showing and selling the car. And also, you may have to wait until the old car tradeline shows paid in full before you can get a new trade line established, so in short you will be out a car as you ve sold it to the other person and you are waiting for the credit report to show clear.

5- What was wrong with your car's history? In this time of Carfax any accident or event that shows will dock the resale value and of course change the trade in value.

6- Rarely do I see someone go from a bad credit car transaction to an excellent on all fronts transaction for their next one. You may have to accept that you may not get the exact deal you want.

[Anonymous]

1. I only have one paid collection on EQ, which was paid off in 2008. Still trying to GW that one off. TU has 3 paid collections, one of which should be disappearing soon. Still GW'ing the other two. EX has a collection that I'm working on getting removed. Aside from that there isn't much left to be done aside from slowly rebuilding and keeping the course. My problem right now is lack of history.

2. I was expecting to be lowballed, but it's obvious she's trying to get me to roll over some negative equity.

3. I'm not firm on KBB value by any means. I'm just using it as a loose guideline. I merely presented it as a trade-in to see what they'd offer, I have always planned to sell it private party.

4. As I have well documented service/maintenance records, audio and performance mods it would best be suited for private party sale. I'm not looking for a quick sale, but I am positive an enthusiast will pay much more than what she offered.

5. They were a bit leery of the catback exhaust and cold air intake and given that it's meant for "spirited drivers", could not have faith in the previous owner.

6. I originally planned to refinance the loan in a year, given that 24% is pretty terrible. Well, after a year, refinancing a 2003 doesn't seem like a wise financial decision so I decided to take a look into upgrading. Nothing that happened was unexpected. I'll just continue to improve the score and offer more cash down next time, say in another 4-5 months.

[Anonymous]

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@Anonymous wrote:

1. I only have one paid collection on EQ, which was paid off in 2008. Still trying to GW that one off. TU has 3 paid collections, one of which should be disappearing soon. Still GW'ing the other two. EX has a collection that I'm working on getting removed. Aside from that there isn't much left to be done aside from slowly rebuilding and keeping the course. My problem right now is lack of history. Lack of history is a huge problem, car loans are NOT driven by scores alone..

2. I was expecting to be lowballed, but it's obvious she's trying to get me to roll over some negative equity.  I truly do not think you rvehicle is worth at all near what you think it should be.

3. I'm not firm on KBB value by any means. I'm just using it as a loose guideline. I merely presented it as a trade-in to see what they'd offer, I have always planned to sell it private party.

4. As I have well documented service/maintenance records, audio and performance mods it would best be suited for private party sale. I'm not looking for a quick sale, but I am positive an enthusiast will pay much more than what she offered.

5. They were a bit leery of the catback exhaust and cold air intake and given that it's meant for "spirited drivers", could not have faith in the previous owner.

Performance Modifications and Expensive stereos detract from a cars trade in value and resale value. You may have spent 2K on the stereo, but when the dealership is trying to sell the car as a car, the lack of trunk due to the speakers and the stereo does not seem to impress 99% of buyers. The buyers it does impress rarely have the financial standing to finance a loan. i remember a guy telling me how much he spent on the stereo and we told him he was welcome to remove it and install the old stock one- a grandfather coming in buying a car for his neice was not going to see the value in that.

Performance mods void most warranties, and potentially make the car unwarrrantyable on sale. They also leave a buyer wondering if the car is being hurt or helped by the install, and where they will get the car serviced at. There is also the ugly thought that the extras they do not really want on the car may require seperate service of their own.

Again HIGHLY LIMITING the potential pool of buyers. Dealerships do not take on trade ins as projects, they want the fastest turn around possible as the vehicle depreciates every month it remains unsold.

++++Any vehicle with that kind of modification is not able to be competently rated by KBB in any form.

6. I originally planned to refinance the loan in a year, given that 24% is pretty terrible. Well, after a year, refinancing a 2003 doesn't seem like a wise financial decision so I decided to take a look into upgrading. Nothing that happened was unexpected. I'll just continue to improve the score and offer more cash down next time, say in another 4-5 months.

Your best bet would be to pay the vehicle off completely, Private party sale it, and try to get into a new car at that time.

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