Do I qualify for an auto loan? (Planning to Finance)

[Anonymous]

Credit Score:

FICO 8: EQ: 684/ TU: 680/ EX: 653

FICO 8 AUTO: EQ: 693/ TU: 697/ EX: 657

Derogs: Just 2 late payments 1 in 2012 and 1 in 2015 both 30 days. (Credit Card)

AAoA: 5yrs

Income: 47K

Lenght of Employment:: 11yrs

Previous Loan Experience: Currently co-signed with my mother last 2014 for a $18K Autoloan with CapOne with 9%APR. (Mother is the Primary)

Debt-to-Income (DTI): around 20% - 25%

Year of Car: 2017 Honda CRV EX

Miles: New

Purchase/Refinance: Purchase

Requested loan term (XX Months): 72 Months

Down payment amount: 3K

Co-borrower/Co-Signer: N/A - SELF

Other: I currently have a 2014 Hyundai Accent GLS, as of right now the balance I owe is 10K (Never Been Late with Payments), I am upside down, I did research the trade val and it came up around 7K. The next vehicle I would like to get is the new 2017 Honda CRV EX which is around 29K not including tax and titles. I am planning to make the purchase this coming April and would accelarate payment towards my 10K loan for an extra $170 a month making my payment from $330 to $500 a month. So by April I will probably be 1K upside down assuming my card doesn't lose more value.

So far I have Prequalified for the CapOne Autonavigator and was prequalified for $35K with a 6.5% APR.

Still planning to try my local CU - Municipal Credit Union and see what type of rates I get.

How would other banks/lenders treat me with my scores? Such as Honda Financials?

Let me know if you need more info.

[Anonymous]

You will get a loan.  I strongly suggest a credit union, DCU and Penfed are easy to join and have excellent auto loans so they might be worth going with.  Its none of my business but I have to say it, trading in cars with negative equity is a vicious cycle that puts you in a constant negative equity situation.   If you can I would suggest keeping your curent car for another year and work on paying down more of the princicple so you don't drag negative equity plus sales tax etc into another car loan.  I learned this the hard way years ago when I first got married, eventually you have to break the cycle because going into the next loan upside down will put you with negative equity for the next 4 years or more.

[Anonymous]

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@Anonymous wrote:

You will get a loan.  I strongly suggest a credit union, DCU and Penfed are easy to join and have excellent auto loans so they might be worth going with.  Its none of my business but I have to say it, trading in cars with negative equity is a vicious cycle that puts you in a constant negative equity situation.   If you can I would suggest keeping your curent car for another year and work on paying down more of the princicple so you don't drag negative equity plus sales tax etc into another car loan.  I learned this the hard way years ago when I first got married, eventually you have to break the cycle because going into the next loan upside down will put you with negative equity for the next 4 years or more.

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Thank You for the advice.. This next purchase will be my 2nd car.. I was foolish and desperate when I bought my first car. I know all about the negative equity thing as I tried to do it earlier this yr and they were giving me a base model Hyundai Sonata for a 30K Loan. In no way I would take a base model Sonata for a 30K loan. I immediately turned it down and left. After leaving my goal after that is accelerate my payments to catch up on the value of my car. As I said, I will be very close to the value of my car come April 2017.

I also wish I can keep the car, Unfortunately I can't as I live in NYC, having one car is a headache enough for parking.

So I am willing to break even with my car now, and get a better Car an SUV to be exact, low rates, and loan on my name as primary.

I'm really not trying to get a negative equity into the new loan.

I've been researching PenFed.. Will do research on DCU as well. Thanks.

[Anonymous]

When we got our last SUV we were well upside down with our Jeep. We went in with a pre-approval from a local credit union (People's First which is located in the Lehigh Valley are of PA) with an interest rate of 1.49% (my SO's score is in the 800's). We purchased a brand new Mitsubishi Outlander Sport and actually got a better loan from Ally Bank. It's a 0% interest 72 month loan. Mitsubishi also cancelled out the $8k of debt (meaning we owed more than the car was worth) we were in with the Jeep and we didn't have to put anything down (although we did). My ex husband is in the car business and has always told me to go in the spring towards the end of the month, which is what we did...so you may be able to get rid of that negative equity from your current car.

[StartingOver10]

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@Anonymous wrote:

When we got our last SUV we were well upside down with our Jeep. We went in with a pre-approval from a local credit union (People's First which is located in the Lehigh Valley are of PA) with an interest rate of 1.49% (my SO's score is in the 800's). We purchased a brand new Mitsubishi Outlander Sport and actually got a better loan from Ally Bank. It's a 0% interest 72 month loan. Mitsubishi also cancelled out the $8k of debt (meaning we owed more than the car was worth) we were in with the Jeep and we didn't have to put anything down (although we did). My ex husband is in the car business and has always told me to go in the spring towards the end of the month, which is what we did...so you may be able to get rid of that negative equity from your current car.

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Usually they add the negative equity to the new purchase - not cancel the outstanding loan. Were there incentives that were available on the new purchase to compensate for the negative equity?

[Anonymous]

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@StartingOver10 wrote:

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@Anonymous wrote:

When we got our last SUV we were well upside down with our Jeep. We went in with a pre-approval from a local credit union (People's First which is located in the Lehigh Valley are of PA) with an interest rate of 1.49% (my SO's score is in the 800's). We purchased a brand new Mitsubishi Outlander Sport and actually got a better loan from Ally Bank. It's a 0% interest 72 month loan. Mitsubishi also cancelled out the $8k of debt (meaning we owed more than the car was worth) we were in with the Jeep and we didn't have to put anything down (although we did). My ex husband is in the car business and has always told me to go in the spring towards the end of the month, which is what we did...so you may be able to get rid of that negative equity from your current car.

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Usually they add the negative equity to the new purchase - not cancel the outstanding loan. Were there incentives that were available on the new purchase to compensate for the negative equity?

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No incentives that we were told about, we were there for about 8 hours and they worked their butts off to help us. Best experience I've ever had and I was so thankful we were able to just get rid of that jeep.

[Anonymous]

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@Anonymous wrote:

When we got our last SUV we were well upside down with our Jeep. We went in with a pre-approval from a local credit union (People's First which is located in the Lehigh Valley are of PA) with an interest rate of 1.49% (my SO's score is in the 800's). We purchased a brand new Mitsubishi Outlander Sport and actually got a better loan from Ally Bank. It's a 0% interest 72 month loan. Mitsubishi also cancelled out the $8k of debt (meaning we owed more than the car was worth) we were in with the Jeep and we didn't have to put anything down (although we did). My ex husband is in the car business and has always told me to go in the spring towards the end of the month, which is what we did...so you may be able to get rid of that negative equity from your current car.

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Thanks for the input..

I actually joined PENDFED yesterday and was approved for the membership. I app for a CC and got approved as well. Will definitely consider them this coming April.

I will tell the dealership. Only way I will finance with you is if you beat their rates. No matching, gotta beat it.