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I had several problems with finances in 2008 and 09 and had an Acura lease repo'd 3 months before end of lease. I miss that car a lot, I wanted to buy it after the lease.
It was a CO and sent to their recovery dept and I paid it off with them, about 2.5 times what I would have paid for the last 3 months. It still shows on my CRs and is expected to roll off in Feb 2016.
I did buy another car, an older used one with miles, and I paid it off without problems. Unfortunately, it was from a BHPH lot owned by a friend that promised they would be reporting to CRs soon but it never happened, so no history was ever reported.
I am considering another car in a few months and would take my papers showing I paid off the repo to the CU before applying, or worst case, to the dealer if I was applying there.
Do you think my rates would improve with the letter, or not much difference?
I dont have any car loans listed since the repo with Honda Financial ending in 2009.
My scores are now in the low 700 / high 690 range for all three bureaus.
Thanks.
Bump.
Carmax doesn't use auto enhanced scores I don't believe so you could always go that route to avoid the previous repo as an issue.
I feel like some places now pull 1 regular fico and 1 auto enhanced fico and will use the better.
I think you will be ok given your current scores and the time that has passed since the repo. I always suggest getting prequalified with a credit union before you go shopping. That will give you a sense of what the best APR is, the dealer may or may not be able to beat it but if you go in without a pre qualification they will do all they can to take advantage of your credit history to charge you a few extra points that they pocket. I would think you are likely looking a 4-6% for a new car 60-72 months. You really won't know until you apply. My guess is based on the assumption that you have active lines of credit and are paying them on time which is my assumption based on your respectable scores. It is very possible you could get down around 2.7%. I would go with DCU, folks here do great with them, I went through NFCU and they treated me well and I had scores in the upper 500's at the time.
Thanks for the replies.
I do intend to get my financing in order and pre arranged before I shop for a car. I joinded Nasa Fcu and Sdfcu in the last month but not ready to apply for a loan yet.
Just thinking about the finance person shot gunning my credit app brings back memories of the car salesmen swarming all over you as you pull into the car lot. I didn't like it then and I avoided it by either shopping where I knew a sales person or by choosing a particular car and then calling in to ask about it before going to the dealer, and having a salesman's name to ask for.
Since I have been working for a long time to get my scores out of the dumps, I wont let them trample all over it with a shotgun apporach.
Thanks
First hand experience here- had repo in 2010-three months early from lease- bmwfs- 11k still owed. Got financed through wells fargo dealer services score were high 500 low 600s
refi one month late with chevron fcu at 5.9 (dealer was 6.9), just took out a second car loan with wells at 7% higher but a second car and will refi shortly (scores are 664 fico 08 experian) hope this helps
I tried dcu they won;t finance with repo showing
Thanks, unless I get a much better job soon, I am planning to stretch my transportation special out until the repo is off my CRs, regular schedule would be 02/2016.
I did get a very used car in 2012 from a BPPH lot that did not report to the CRAs and it cost me 14% but it was just on a 7k loan and it is paid off now.
Looking forward to a regular car purchase with a loan that is not outrageous for this next one.
By February, all my scores should be in the 710 to 720 range, maybe better.
Thanks