Hyundai Finance

[FSUGAPEACH78]

FYI. We live in the ATL and DH's TU scores were 100 points higher than Experian and Equifax. Hyundai happens to pull from Transunion so we traded in our 2009 Jeep Wrangler with 17% interest through Wells Fargo for a 2011 Hyundai Sonata SE for 4.5% interest with Hyundai. We lowered our payments by $100.00 a month!!! The finance guy told me that Hyundai is one of the few finance companies that will allow either Equifax or TU

His "auto enhanced" scores were:
EQ- 605
Ex-598
TU-700

[elisheva11]

Hi,

I just got approved for a $16,000 loan through Santander with a 24% interest. My fakos are EQ 536, TU 518, EX 512. I'm going to take the loan but I want to refinance in a year or sooner. What were the steps you took to go from 488 to 600's in 6 months?  I didn't think it was possible but that's awesome and I would graetly appreciate any advice or tips you can share.

Thanks

[CS800]

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@elisheva11 wrote:

Hi,

I just got approved for a $16,000 loan through Santander with a 24% interest. My fakos are EQ 536, TU 518, EX 512. I'm going to take the loan but I want to refinance in a year or sooner. What were the steps you took to go from 488 to 600's in 6 months?  I didn't think it was possible but that's awesome and I would graetly appreciate any advice or tips you can share.

Thanks

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That's what I did. My auto loan was 15% and after one year of rebuilding (it was mostly paying down my util which was 90% and GW's some lates. My scores shot up by over 100 points). I just refi with USAA at 5%.

I would say work on your utils, collections and lates.

[CS800]

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@FSUGAPEACH78 wrote:
FYI. We live in the ATL and DH's TU scores were 100 points higher than Experian and Equifax. Hyundai happens to pull from Transunion so we traded in our 2009 Jeep Wrangler with 17% interest through Wells Fargo for a 2011 Hyundai Sonata SE for 4.5% interest with Hyundai. We lowered our payments by $100.00 a month!!! The finance guy told me that Hyundai is one of the few finance companies that will allow either Equifax or TU

His "auto enhanced" scores were:
EQ- 605
Ex-598
TU-700

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I love that car The 2011 model. I was driving a 2011 Volvo S60 and someone asked me if it was the new 2011 Sonata lol

I guess they look the same

[ebenbow]

I realize you probably will not take this advice but do not take a loan at 24%.  That is plain usury.  You have no guarantee that your score will improve enough in one year to allow you to refinance at a better rate.  In addition when you want to refinance you will most likely be underwater on your car loan thus making refinance more difficult.  Just my opinion but sounds like a very bad plan.

[StartingOver10]

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@ebenbow wrote:

I realize you probably will not take this advice but do not take a loan at 24%.  That is plain usury.  You have no guarantee that your score will improve enough in one year to allow you to refinance at a better rate.  In addition when you want to refinance you will most likely be underwater on your car loan thus making refinance more difficult.  Just my opinion but sounds like a very bad plan.

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+1000

You are jumping from the pan into the fire if you take the loan.

You will be so upside down at the end of a year you will not be able to refinance without putting down a substantial amount of money on the existing loan or bringing a large down payment to the new lender to pay for the difference between what the car is worth and what the old loan balance will be after you have had 24% interest compounded for a year.

You are better off not getting the loan at all. Rehabilitate your credit first. Buy something inexpensive for cash now until you have a better score.
Any lender that will charge you 24% interest is a subprime lender. A subprime loan is usually designed to fail. Worst case is you take the loan, lose the car and then still owe the money for the loan plus late fees and penalty interest. Don't do it - it is a receipe for disaster IMO.

[CS800]

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@ebenbow wrote:

I realize you probably will not take this advice but do not take a loan at 24%.  That is plain usury.  You have no guarantee that your score will improve enough in one year to allow you to refinance at a better rate.  In addition when you want to refinance you will most likely be underwater on your car loan thus making refinance more difficult.  Just my opinion but sounds like a very bad plan.

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Very true. Unless you make additional payment to bring your balance down for a refi to the car value 1 year later.

[elisheva11]

Thanks All,

I agree and appreciate the wise counsel. I didn't take the loan... I coudnt bring myself to sign the contract.

Im going to open a secure card and start writing my PFD and GW letters. I can pay myself the monthly note that

I would have given them for interest and have a nice down payment when Im ready to purchase. 

[frogfan12]

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@elisheva11 wrote:

Thanks All,

I agree and appreciate the wise counsel. I didn't take the loan... I coudnt bring myself to sign the contract.

Im going to open a secure card and start writing my PFD and GW letters. I can pay myself the monthly note that

I would have given them for interest and have a nice down payment when Im ready to purchase. 

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That is such a good idea elisheva. 24% is like a credit card interest rate gone bad. Bringing money to the table and having a good loan offer gives you the upper hand. Besides, anyone who is willing to sell a car at 24% is probably selling lower quality cars (that's been my vicarious experience).