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Auto lender approved 120%....but now what?

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Yoshi2015
Contributor

Auto lender approved 120%....but now what?

So I applied for DCU and they agreed finance 120% of NADA. I received a pretty decent interest rate. But anything is a plus from my current double digit interest rate. Lol! With that said, I want to get best bang for my buck. I can get a newer acura with 30k miles or less or an older 2011/2012 lexus with 40-60k miles. Which route should go? I have to roll in my negative equity. It appears that the lexus would hold its value to help absorb the shock of this negative equity, at least better than the Acura. If the lexus is the best option, does it matter that the vehicle has low mileage but has an accident on the carfax? Will I be fine to purchase if the accident was years ago and it doesn't report any structural damage? Thoughts and opinions are severely needed.....thanks!

Message 1 of 5
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Anonymous
Not applicable

Re: Auto lender approved 120%....but now what?

You need to buy a new car with big rebates to soak up that neg.  Used cars would be a mistake unless you are looking at BMWs or something thats really going to keep its value.  And did DCU give you the 120% approval on a used car??  That would be amazing if they did, but I assume they are talking new cars with taxes rolled in.

Message 2 of 5
Anonymous
Not applicable

Re: Auto lender approved 120%....but now what?

DCU or any other lender doesn't care if the CarFax shows an accident.  They won't even know.  It's something that you should be concerned about though.  Make sure you have as much information as possible about the nature of the accident and what damage was done.  

 

How owe much negative equity do you think you need to roll in?

Message 3 of 5
Anonymous
Not applicable

Re: Auto lender approved 120%....but now what?


@Anonymous wrote:

You need to buy a new car with big rebates to soak up that neg.  Used cars would be a mistake unless you are looking at BMWs or something thats really going to keep its value.  And did DCU give you the 120% approval on a used car??  That would be amazing if they did, but I assume they are talking new cars with taxes rolled in.


BMW keeps its value? What world r u from? I got a brand new BMW m4 for 96k after 6 months or so the car is only worth 75k selling it privately and 70k ish trading it in which is less than what I owe. Any vehicle u get u will be negative for at least first 2-3 years depending on interest rate. BMW Benz and Audi.. Actually any German cars will lose value faster. Back to op I'll get the Acura with 30k miles instead of the Lexus of course also depend on which model ur talking about and comparing

Message 4 of 5
Anonymous
Not applicable

Re: Auto lender approved 120%....but now what?

lol my credit union financed a 2000 Subaru Legacy that had front end damage at BBV when it was really worth 4k, but they lended it to us for 8k.. they don't care what condition it is anymore it seems.

Message 5 of 5
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