New Car After Total Loss

[Anonymous]

I used the Cap 1 Navigator to see what I'd get just for **bleep**s and giggles. I was approved for 25k at 7.9% with the lowest rate. Give it a shot as it doesn't hurt your score. 

[Anonymous]

idk why I didn't do that before, just as a see what's out there kind of thing.  Omg.  They pre-approved me for $27,000 and some change at 4.6% new and 6.4% used.

SORRY GUYS apparently I'm a maniac.

[Appleman]

Always good to get some reassurances that you will be approved.

I would still think the PenFed may be something to try.

But if you need the car and are comfortable with the Cap1 offer go for it. No reason you could not refinance with PenFed or another credit union later in the year.

Good luck and let us know how the Cap 1 experience goes for you. There have been a few cautionary tales of dealers playing games. In light of that do more home work and if you do not understand something in the paperwork or are not comfortable with the situation, do not sign the paperwork.

I would encourage you to avoid any dealer add-ons such as the extended warranty, paint protection etc. This will allow you to have a more affordable payment and get the new car paid off more quickly. 

[Anonymous]

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@Appleman wrote:

Always good to get some reassurances that you will be approved.

I would still think the PenFed may be something to try.

But if you need the car and are comfortable with the Cap1 offer go for it. No reason you could not refinance with PenFed or another credit union later in the year.

Good luck and let us know how the Cap 1 experience goes for you. There have been a few cautionary tales of dealers playing games. In light of that do more home work and if you do not understand something in the paperwork or are not comfortable with the situation, do not sign the paperwork.

I would encourage you to avoid any dealer add-ons such as the extended warranty, paint protection etc. This will allow you to have a more affordable payment and get the new car paid off more quickly. 

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Appleman always has great advice and this is no exception.  I would work with Penfed, I suspect they will give you a decent rate and I would always try to work with them or another credit union before Capital One or walking into  dealer cold.  Having a car totaled or stolen really sucks.  We had a car stolen at a terrible time (in the middle of a new construction home).  If you have to take a less than great loan just make sure you pay close attention to loan to value so you can refinance it in a few months with a credit union when you bring down that utlization and get the score bump that comes with it.  Hopefully that won't be needed but just because you don't get the rate you want today doesn't mean your stuck with it forever if you keep yourself elgible for refinancing.  Many here have loaded up loans with add on's or did not pay close attention when they negotiated their deals and get stuck being too far upside down to refinance leading them to paying thousands of extra money in interest over the life of the loan so its worth doing all you can to avoid that.  Hang in there, hopefully you will have better luck.  This is a reason I have new car replacement assitance with USAA, you pay about 20 bucks a year extra but they give you the fair market value of the car plus 20% in the event of a total loss which would really help to soften the blow in one of these situations.  Might want to look into something like that just in case.

[Anonymous]

Just a suggestion of my own and maybe I am wrong? But I would consider throwing that $1500 towards your credit card's instead of the new vehicle and maybe think about applying for another credit card? An increased credit limit and using that 1500 to pay down card's could help your utilization quite a bit and at the same time increase your scores resulting in a better interest rate on the vehicle. Afterall, I am sure the interest rate on your credit card's is much higher than that of a potential auto loan.

[Appleman]

SEMO, good point. If the OP gets approved without needing to put money down, using the money to pay of CC debt will likely be the best financial move for saving money and improving the credit score.

[Anonymous]

Hi guys!  Thanks for all your help!  I was approved today with a local credit union where I'm from for $20,000 at 4.5%, and I'm going into the dealership on Saturday!  If they can't beat that I'm perfectly happy with it.  They're only requiring 1000 down, so I think I'll put the extra $500 toward my cards this month.  Thank you!

[Appleman]

Congrats! Enjoy the new car....

If you let them rate shop you, make the limits clear up front. You can allow them to run your credit which they will happily 'shotgun' to their contacts or tell them they may run it once or twice with the lender that will have the best chance of giving you a better rate. You can ask to talk with the finance guy prior to getting your credit pulled.

Also, it can be tricky in deciding to tell the dealer what your finance rate is. By telling them you are at 4.5% they may come back with 4.25% which may mean it will be worth it to take the CU loan and build up your history with them. With some credit unions, it will be easier to get additional credit down the line if they have a strong payment history on an auto loan.

Remember, do not sign until you are comfortable.