Need advice re Trade In and New Loan

movinonup79 · ‎09-14-2014

I moved to Milwaukee last year and needed a car that could handle ths snow, so bought an SUV and was desperate and ended up with an 18% interest rate from my credit union (who is funding subprime loans and having a third party service it - I'm assuming so nobody knows they are giving away their members' money in this fashion). The payment is $530 a month and I just got transferred to Philly and drive maybe once a week. I'm hoping to trade-in and downgrade to something cheaper, but I know I will have to suck up some negative equity.

When I bought the car, I was just out of BK in Sept. 2013 and my score was 490 with an auto enhanced that brought it up around 520. Currently I am sitting at about 579 and just paid off about 1100 (most of my balances) in credit card debt. Last time I paid off my big credit card ($800)/CL is $1200 and $200 is outstanding my score jumped to 599 and this time have paid off victoria's secret down from $232 to $32 with a CLI of $500. All of these statements have cut ans should report next week.

My question is, if I go to a dealer, can I get a good rate if I am in the low 600's. I'm really hoping this takes me to 620-620 or higher, but you never know. I can't find the chart that says what interest rate to possibly expect at certain credit scores that was on myfico previously. I also have never had any late payments on any car loan that I have ever had.

Any help is appreciated. Thanks in advance!

04/01/10 - TU: 659 / EX: 648 / EQ: 601 (LO Scores)
2/25/10 - EQ 588 / EX 660 (LO) / TU 633
2/9/10 - EQ 567 / EX 585 / TU 601
1/12/09 - EQ 544 / EX 570 / TU 593
12/12/09 - EQ 536 / EX 555 / TU 582
11/13/09 - EQ 536 / EX 586 / TU 566
11/03/09 - EQ 540 / EX 544 / TU 574
07/18/06 - EQ 478

Creditaddict · ‎09-14-2014

what do you currently owe on the car?

what is trade in value?

what do you want to buy?

don't rag on your credit union much, sounds like they did you a favor to approve you for under 20% with that kind of credit score (no offense)

movinonup79 · ‎09-14-2014

Very true. I did just try to refi with cap1, and got a significantly lower interest rate, but the term they offered still made the payment too big.

I'm probably in the hole about $5-6K.

On the bright side, was just approved for 2 cap 1 unsecured cards totaling $1500, and that's before my updated payoff on other cards!

I'm on the fence right now on what to buy. I'm in Phlly now, so would want something with AWD, so thinking subaru and hertz has some good deals on some smaller SUV's. Also my work represents subaru, so I get below MSRP if I buy new, but don't want to dig myself in a hole again. So I'm just going to keep my options open for a bit and see what feels right!

What kind of rate do you think mid-600's pull?

Thanks for replying! I appreciate it!

04/01/10 - TU: 659 / EX: 648 / EQ: 601 (LO Scores)
2/25/10 - EQ 588 / EX 660 (LO) / TU 633
2/9/10 - EQ 567 / EX 585 / TU 601
1/12/09 - EQ 544 / EX 570 / TU 593
12/12/09 - EQ 536 / EX 555 / TU 582
11/13/09 - EQ 536 / EX 586 / TU 566
11/03/09 - EQ 540 / EX 544 / TU 574
07/18/06 - EQ 478

sccredit · ‎09-15-2014

As far as I know Hertz does not take trade ins so you would have to sell yours, cover the negative equity in cash and then try to buy through Hertz.

movinonup79 · ‎09-15-2014

@sccredit wrote:
As far as I know Hertz does not take trade ins so you would have to sell yours, cover the negative equity in cash and then try to buy through Hertz.

Well that's good to know! Thanks so much! Have some appointments this weekend with a jeep dealer and subaru. We'll see what happened. One of my paid off CC's just posted and I'm up 20 points, one more to go end of next week!

04/01/10 - TU: 659 / EX: 648 / EQ: 601 (LO Scores)
2/25/10 - EQ 588 / EX 660 (LO) / TU 633
2/9/10 - EQ 567 / EX 585 / TU 601
1/12/09 - EQ 544 / EX 570 / TU 593
12/12/09 - EQ 536 / EX 555 / TU 582
11/13/09 - EQ 536 / EX 586 / TU 566
11/03/09 - EQ 540 / EX 544 / TU 574
07/18/06 - EQ 478

Creditaddict · ‎09-15-2014

@movinonup79 wrote:

@sccredit wrote:
As far as I know Hertz does not take trade ins so you would have to sell yours, cover the negative equity in cash and then try to buy through Hertz.
Well that's good to know! Thanks so much! Have some appointments this weekend with a jeep dealer and subaru. We'll see what happened. One of my paid off CC's just posted and I'm up 20 points, one more to go end of next week!

Subaru! they have come so far and I think they are way better reliability wise than jeep

movinonup79 · ‎09-15-2014

@Creditaddict wrote:
@movinonup79 wrote:

@sccredit wrote:
As far as I know Hertz does not take trade ins so you would have to sell yours, cover the negative equity in cash and then try to buy through Hertz.
Well that's good to know! Thanks so much! Have some appointments this weekend with a jeep dealer and subaru. We'll see what happened. One of my paid off CC's just posted and I'm up 20 points, one more to go end of next week!
Subaru! they have come so far and I think they are way better reliability wise than jeep

I currently have a jeep compass and love it, but I get super discount through my work with subaru...so that may be the choice I make.

04/01/10 - TU: 659 / EX: 648 / EQ: 601 (LO Scores)
2/25/10 - EQ 588 / EX 660 (LO) / TU 633
2/9/10 - EQ 567 / EX 585 / TU 601
1/12/09 - EQ 544 / EX 570 / TU 593
12/12/09 - EQ 536 / EX 555 / TU 582
11/13/09 - EQ 536 / EX 586 / TU 566
11/03/09 - EQ 540 / EX 544 / TU 574
07/18/06 - EQ 478