Getting refinanced on a brand new car? (help)

[pipeguy]

I would strongly suggest you cancel the Gap Insurance - major profit product for the dealer. If you feel you do need Gap insurance (I don't and never have, but there are fans) buy it through your credit union or auto insurance company - it'll be cheaper and just as good if not better.  

I'm also a fan of DCU and there are many stories on this forum of DCU refi's at much lower rates - even if you have to wait 6-12 months get OUT of that financing contract the rate is way way too high - also a profit item for the dealer and if you scores are being limited just because they are new the dealer took full advantage of you (those are sub-sub-prime rates). 

[Anonymous]

OP, I am sure you will be fine.  If DCU does decline you have plenty of other options but I am pretty sure your in good shape.  Let us know how it goes.  Happy you are going this route.  I agree that buying GAP through the credit union is the way to go.

[Anonymous]

Still waiting on response from dcu and dfcu. They both pulled transunion which are my stronger scores so fingers crossed. And yeah I realize that now.. at the time just really wanted a brand new car so as to not worry about maintenance. At this point I realize I should've shopped around and I also realize I'm an impulse buyer. Oh well, now I know for next time. A local bank will refinance in roughly 6 months. As long as score is over 600 (at the time of pull it was 590 from the inquires) so they couldn't work with me. They are offering me 5.99% at 60 months which for me would be so much better than the current rate. GAP insurance is only $17 extra every month so I figured it'd be worth it. Thanks for the help guys, hopefully I'll get something positive back from one of the unions. Fully willing to submit paystubs exc but I've only gotten the "we are processing it" email and no other contact.

[Anonymous]

Its a no from dcu. Well, maybe dfcu will. Would paying on this car for 3-6 months help out at all?

[Anonymous]

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@Anonymous wrote:
Still waiting on response from dcu and dfcu. They both pulled transunion which are my stronger scores so fingers crossed. And yeah I realize that now.. at the time just really wanted a brand new car so as to not worry about maintenance. At this point I realize I should've shopped around and I also realize I'm an impulse buyer. Oh well, now I know for next time. A local bank will refinance in roughly 6 months. As long as score is over 600 (at the time of pull it was 590 from the inquires) so they couldn't work with me. They are offering me 5.99% at 60 months which for me would be so much better than the current rate. GAP insurance is only $17 extra every month so I figured it'd be worth it. Thanks for the help guys, hopefully I'll get something positive back from one of the unions. Fully willing to submit paystubs exc but I've only gotten the "we are processing it" email and no other contact.

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$17 a month for GAP is insane. Credit unions charge 300 bucks for GAP , under your proposal your paying over $1,000 for GAP insurance.    The issue with refinancing is going to be loan to value.  You need to ensure that when you get to the point that you want to or can refinance you need to make sure you meet their standards so its a good idea to make extra principle payments during the coming months.

[Anonymous]

I'll call later today and get the GAP canceled and see what my auto insurance can offer with that. That'll drop my payment down to $440. My debt on my credit cards is whats holding back an approval at the local bank which like I stated before can do a 5.99% at 60 months which would be lovely (dropping my payment down to $330). I'll be paying off closer to $250 so hopefully i'll be looking somewhat better off next month. I guess i'll have to see. 

[Anonymous]

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@Anonymous wrote:

I'll call later today and get the GAP canceled and see what my auto insurance can offer with that. That'll drop my payment down to $440. My debt on my credit cards is whats holding back an approval at the local bank which like I stated before can do a 5.99% at 60 months which would be lovely (dropping my payment down to $330). I'll be paying off closer to $250 so hopefully i'll be looking somewhat better off next month. I guess i'll have to see. 

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Any update? DId DFCU pick up the loan? 

[Anonymous]

Nope. None of them did sadly. Local bank wants above 600 and a slightly higher income than what I have so idk. The sooner the better if I can refinance. I understand that I may need the installment loan history on my credit and may need to build that but I don't want to get too far underwater in this.

Any other places I may have a chance? According to my FICO app my scores are 604,622,634 respectfully after paying down some balances. I do have a good bit of inquires which doesn't help... But any prospective lender could quickly check and see they were all auto loan requests.

[Anonymous]

Got the letter in the mail from local bank. Score was 611 when pulled its just income at this point... Guess I'll go down with a few months of paystubs to verify current income. Any other lenders that may be more forgiving? Capitol one refinance is a no go but the reason stated is unable to verify income. Called in, no way to fax in paystubs to verify income. How dumb