Auto Loan problems

[Cokeguy88]

Hello to all

Im in a little dilenma ...im looking to purchase a new car (Honda accord exl or sport )so i applied to my credit union and got approved but only for $20,000 and with a apr of 2.24% because my income is not high( i made 47,000 last year but they only look at base pay and that only adds up to 33,696).

do you guys think i will  have better luck in the dealership in obtaining a bigger loan to cover the whole amount even if its a higher rate and then refinancing .

my experian score is 704,EQ695,TU729 

[DrZoidberg]

Honda Financial Services is pretty lenient. I imagine if you are purchasing from a dealer you could get the full amount for around 3-4%. Do you have a down payment you are putting towards the car?

[Cokeguy88]

No money down right now but i could sell my current car and maybe get 3-4 thousand for it 

[Cokeguy88]

Applied to capital one and they gave me a 30,000 for 11.81% apr loan 

i have also applied to wells fargo and chase  and just waiting for their response

[glepurple]

. Are those fico scores...if so you should try dcu or use your approvals to your advantage at a dealer. Tell them you are pre-approved and ask if they can beat cap 1's rate.

[StartingOver10]

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@Cokeguy88 wrote:

Hello to all

Im in a little dilenma ...im looking to purchase a new car (Honda accord exl or sport )so i applied to my credit union and got approved but only for $20,000 and with a apr of 2.24% because my income is not high( i made 47,000 last year but they only look at base pay and that only adds up to 33,696).

do you guys think i will  have better luck in the dealership in obtaining a bigger loan to cover the whole amount even if its a higher rate and then refinancing .

my experian score is 704,EQ695,TU729 

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How much is the total price of the vehicle you are looking at now? How much are you looking to put down?

I know people here like to buy with zero down, but IMO that is the worst way to buy a vehicle. BTDT. It is worse because it is a depreciating "asset" that loses a tremendous amount of value the moment you buy it so you are instantly upside down the moment you sign your name. The higher the interest rate, the more you are upside down.

Yes, even Honda's depreciate.

I understand where you are coming from, but why don't you reconsider the amount of vehicle you are looking to purchase if the amount you can comfortably finance is $20k? Or buy that vehicle with a down payment that brings the amount financed to the $20k.

@There is a huge difference between the two offers you received: $20,000 @ 2.24% (assuming 5 yr term the payment is $352.66 and 6 year term $297.12)   and $30,000 at  11.81% (assuming 5 yr term the payment is $ 664.46  and 6 year term $583.55). 

The first offer seems very affordable on your income and the second isn't really comfortable for the long term based on the income you posted.  If you can, put down as much as you can afford so you keep your long term payments based on your actual base pay (and not with the extra income). It is so much easier to make a payment that is small relative to your income.

[SamsungHDTV]

Apply at the dealer with Honda. Maybe they will count your commission as income and you wont have the problem.

Let them know you have a really attractive rate, and that you don't want to mention what it is, but you want to see what they have to offer. You have good credit, I don't see why they wouldn't give you a good rate and finance the whole thing. 

I bought a honda accord in Feb 2013, no down payment. It was $25,700 drive out. My income was very similar to yours, in fact a little less. Honda offered me 3.9% with no down payment. But my credit union was able to offer a better rate. Also, my scores were around 677 ish. 

Go to honda or another credit union.

[Cokeguy88]

i took your guys advice and im looking at older models accord just so i can lower payments 

got my auto loan packages today in the mail 

capital one is 12.83 for 72 months up to $28,000 and came up with 630 experian credit score (i guess auto-enhanced credit score )

chase is 2.24 for 60 months up to $15,000 and 670 transunion credit score (wish it would of been $20,000)

looking to purchase a 2011 honda accord exl v6 for 19,500 my first  delaer purchase car so i'm new to this and never had an installment loan

[Cokeguy88]

 Took the advice  you guys gave me and started looking at a older models accord (2011-2012) for lower payments 

Got the auto loans packages from capital one and chase today in the mail

capital one is up to $30,000 for 72 months at a rate of 12.80% for a used car .credit score experian 630 (auto-enhanced i believe)

Chase is up to $15,000 for 60 months at a rate of 2.24% and my credit score from transunion is 670(auto-enhanced )

will be looking to go with my initial loan with my credit union and try to see if the dealer gives me a better rate 

[2011beginnings]

I was in a very similar situation as you this time last year with similar income.

I applied through Penfed and was approved for a $20000 loan with 1.74% APR. I purchased a 2011 Accord EX. Originally I wanted to go brand new but there was a big enough difference in cost that I didn't deem worth it and don't see myself using all the bells and whistles. For instance, it's nice to have backup cam but it would've been about $120 extra for these new features.

In the end, I decided having a CPO model was the right fit for me and the difference in monthly is money I bank and save. .

FYI, this was my first auto loan and PenFed was awesome to work with. I would recommend checking them out.