New auto loan with current loan in place - need advise.

[CardsLifeLine]

Hi All,

Below is my situation and need some expert advise on this and how I can go forward with this .

Currently I have Honda Civic 2013 card financed with Honda financing at 0.9% APR for 20K. As of now after 8 months I have $17 K loan amount remaining. 

As I am blessed twins now, I am planning to go for a mini Van and get a loan for the same. In order to get a new mini Van with $23K, I have to either trade in current honda civic or sell it to private party. 

1. Do i need to close my existing loan and they apply for new loan ? If so, can I close loan today and apply for new load the very next day ? 

2. How many days I need to wait after closing my existing loan of $17K before I apply for new loan of $23K? I do not want to get a decline for new load becoz i already have one. 

3. I have around 740 + FICO score on my EX and TU CR and around 700 FICO score on EQ. What options I have to get best rate ?

any advise in this regard will be of great help. Also, if any one has applied for new loan with an existing loan please let me know what was the outcome of the same.

Thank You,

[Remember0]

This really depends. You look like a prime customer. If DTI is okay, you can probably keep both at the same time.

What's your income PRE-tax?

Rent/mortgage?

Aggregate minimum payments on all cards that have a current balance on your credit report (even if PIF'ed)?

1) You'll be fine closing today, applying tomorrow esp. at a dealer. If a CU like DCU, I suspect it'll still be fine. But for sure with a smaller CU/bank, you may want to wait till the close reports to the cr (usually < 30 days), but I really do think that's overkill.

2) I don't think you'd get a decline regardless even if left open depending on DTI.

3) With that sort of EQ, apply to DCU. You have to call after you apply. All they need is a 675+ EQ and you typically qualify for 1.24% for 65 months.

Not sure what van you're looking for, but if you mean new, it'll be tough at that price. The only I can think of for 23k OTD is the Grand Caravan. Obviously if you want slightly used, you have many more options/

[CardsLifeLine]

Thanks a lot for the response.

Please find additional deatils as below :

What's your income PRE-tax? - $86K

Rent/mortgage? - Rent - $850

Aggregate minimum payments on all cards that have a current balance on your credit report (even if PIF'ed)? I have almost $120K credit line, however I have only $2K balance and I need to pay may be $150 minimum each month. 

I was looking for Mazda 5 touring $24K OTD [ still needs to negotiatate] or looking for 2012/2013 used mini vans. 

[Remember0]

Gotcha. You won't have any troubles getting approved at the dealer even with the existing. If they ask, you could say one of a number of things: I'm going to get rid of it, but private party. Or my ______________ will be driving it (insert family member, spouse, partner, etc...). Doesn't matter given your income, DTI, and scores.

I doubly recommend to applying to DCU if you buy used. Nothing is going to beat 1.74% for 65 months (1.24% if you move your direct deposit, or part of your dd (just don't tell them it's a part lol), to them). Heck even for new, pretty hard to beat!

Enjoy the new Mazda or minivan! I've heard good things about the Mazda5. In case you want tips negotiating, they are there in the intro of my thread here. Also in the financing section is how to deal with stuff like gap + warranty:

http://ficoforums.myfico.com/t5/Auto-Loans/Guide-to-Financing-Leasing-and-Refinancing-a-Car/td-p/289...

[Remember0]

OH and if you consider trading in, get it valued at Carmax first (free + no obligation + walk in and only 30 mins, but don't do this more than 5 days before you know you'll definitely go to the dealership).

With a carmax appraisal, the dealer can't rip you off by lowballing you. Negotiate the new car privce BEFORE mentioning anything about a trade.

[CardsLifeLine]

Thank you so much for the response. let me try with DCU first and see what I can get. I will keep you posted on this. Thanks agian. 

[Remember0]

By the way, after doing DCU you online, you need to call them. Tell them you're looking to buy a new car soon and just wanted to know whether you could get their 1.24% offer.

Otherwise they'll take weeks to do it by themselves. Also looks like we posted simultaneously, read my post just above your most recent one.

[CardsLifeLine]

I got approved for 24 K car loan with DCU at 1.24% apr. Yet to finalize my mini van. Lots of confusion and Internet buying is not helping me at all as no dealer is ready to share me breakup and OTD price over emails and all they want me at their office.

Will keep posted. Thanks for ur advise and help.

[Remember0]

Okay, find more dealers. Also contact them via their website. Many won't respond, but some should.

I would send emails that say just this:

"I am interested in a 2014 Mazda5 Touring Automatic with no other options. Currently I'm targetting $x. Please let me know where you guys are and break down your quote. I would be coming from (insert state ~200 miles away) and can not come down until we have price settled."

Like I said, send it through their online web forms and give them an email address and name that is new. Find the target price by going to truecar and seeing what it goes for in your area/everywhere you are willing to travel to. Subtract ~1k off the truecar price and start there. if no replies, new name, new email, try 500 off truecar, and so forth.

Worst case, you can always turn to truecar. Won't be an awesome deal with TrueCar, but it won't be a terrible one either.

BTW if you are buying used, this is trickier since you can't truecar it. (I saw you might be buying a used tc from the approvals thread?) In that case, use the same email, only contact through internet, and again emphazise you can't come from 200 miles. THe whole reason you are willing to drive is to save money.

[CardsLifeLine]

Thanks a lot. Yes I am looking for used ones. I have started Internet option by sending emails. I will keep u posted. Thanks again.