Refi and new vehicle help

[kuc21]

I currently have a 2011 Toyota Camry that I still owe about 11500 on with a ridiculour apr.  Desperately needed a new car and had no other choice.  I am in a much better place as far as my credit is concerned and wanted to refinance and possibly purchase a new vehicle as my mother needs reliable transportation.  What is the best way to go about this and what impact will it have on my credit score?

[pizzadude]

Do you know the approx book value of your car?  Based on what I see for '11 Camrys, it looks to be in the neighborhood of what you owe so hopefully you won't be underwater.

I'd focus on the refi first and then look for a second car if you need one.   What is your current interest rate?   Start shopping around at local CUs to get an idea of what they can offer.

[p-]

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@kuc21 wrote:

I currently have a 2011 Toyota Camry that I still owe about 11500 on with a ridiculour apr.  Desperately needed a new car and had no other choice.  I am in a much better place as far as my credit is concerned and wanted to refinance and possibly purchase a new vehicle as my mother needs reliable transportation.  What is the best way to go about this and what impact will it have on my credit score?

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Take a look at some of the Penfed threads and see if you meet the credit qualifications to join.  They refi at 1.49 for 36 months, but it might be a good idea to ask the CSR about the year and miles before you let them hard pull a membership app.  USAA will do older models, but will be a bit higher rate.  Neither require militarty service for banking products.

Both offer very competetive rates on new cars, with a discount if you use their car buying service.  But I would caution you against cosigning for your mother unless you intend to pay for the car yourself.  Lots of stories here about that kind of thing going wrong.

[Ragelog]

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@kuc21 wrote:

I currently have a 2011 Toyota Camry that I still owe about 11500 on with a ridiculour apr.  Desperately needed a new car and had no other choice.  I am in a much better place as far as my credit is concerned and wanted to refinance and possibly purchase a new vehicle as my mother needs reliable transportation.  What is the best way to go about this and what impact will it have on my credit score?

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I quickly looked at a base model 2011 Toyota Camry no options besides Auto and estimated 60k Miles. It came back with a 14,200.00 retail value on nada.com. I suggest DCU for the refinance you should get 1.49% APR and could do 36-60 months on that 72 becomes 1.99% APR. They were insanely easy and pleasant to work with and my old loan was paid off within 2 days.

I would do the refinance first and then on the vehicle for your mom were you thinking cosigning or straight up buying? I imagine you would but the rates terms and loan amount a lender would offer would likely depend a little more on income, stability etc on top of your score.

Good luck.

[p-]

When you consider cosigning for someone, it's important to realize there's no way they could care as much about your credit as you do.  And needing a cosigner means they haven't really done well paying on time in the past.

I believe it's page 5 in the book of recipies for disaster.

[kuc21]

I wasn't going to co-sign I was going to refinance to lower my payments and give that car to my mom and get another one. How would carrying two car notes look on my credit 

[pizzadude]

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@kuc21 wrote:

I wasn't going to co-sign I was going to refinance to lower my payments and give that car to my mom and get another one. How would carrying two car notes look on my credit 

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Having more than one car loan won't be a negative for your FICO score, however you'll need to make sure you've got both covered from an income perspective.