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New Vehicle Refi

New Contributor

New Vehicle Refi

I'm just wondering how a New Vehicle Refi works.  Obviously the value of the vehicle technically drops when you drive off the lot, so how does a lending institution look at that?  I just purchased a 2011 Ford Explorer XLT.  Tax, Title, License and Extended Warranty took the total to just over $37k.  I ended up in a slight pickel because I was preapproved at my Credit Union, but to get a rebate, I had to get the deal done by Saturday (this was a couple weeks ago).  The CU wanted paperwork in their hands by 4PM on Friday, and I was approved for advertised rates of 4.45% for 6 years. This just wasn't going to happen, so they told me to Reapply at the dealer through them, which I found out at my closing, I was denied!  So to get the deal done, I ended up at 5.75% through Chase, and I'm trying to get a Refi started through my CU, and they said they were going to have to Blue Book the new car...which is so new it's not available yet, hence my question.

Amex Gold, Capital One VentureOne & Platium Cards, AAA BoA Signature Visa, Barclays Airtran & Frontier Airlines Cards, Paypal MC, Best Buy RewardZone Mastercard and Chase Speedway Mastercard....and I FINALLY Welcome to Discover...thank you and have a great day!!!!
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3 REPLIES
New Contributor

Re: New Vehicle Refi

I guess I just got the answer to my own question from my credit union.  Because of however they value vehicles vs the loan value, I'm going to end up at a 4.95% or .5% higher than if they would've just approved me to begin with. 

Amex Gold, Capital One VentureOne & Platium Cards, AAA BoA Signature Visa, Barclays Airtran & Frontier Airlines Cards, Paypal MC, Best Buy RewardZone Mastercard and Chase Speedway Mastercard....and I FINALLY Welcome to Discover...thank you and have a great day!!!!
EX: 667 (8/6 Amex App) - EQ 700 - TU 697
Valued Contributor

Re: New Vehicle Refi

.8% does not seem to me to be worth it.

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New Contributor

Re: New Vehicle Refi

The only reason I am doing it, is it will only cost me $20, and then the loan is at my CU, so payments will be 20 times easier....

Amex Gold, Capital One VentureOne & Platium Cards, AAA BoA Signature Visa, Barclays Airtran & Frontier Airlines Cards, Paypal MC, Best Buy RewardZone Mastercard and Chase Speedway Mastercard....and I FINALLY Welcome to Discover...thank you and have a great day!!!!
EX: 667 (8/6 Amex App) - EQ 700 - TU 697