Hey guys, this is my first post.
I want to refinance my car with my bank Chase, I have a checking/savings with them but no credit card anymore (I will explain the cc situation later).
I have a 2012 Impala LTZ that I love. I bought the car in July 2013. It had 30073 miles at that time. The price of the car was $17400. The OTD was $20903. I am with Santander. The terms are 429 a month for 72 months at 13.7%. Pretty high I think especially considering these cars have horrible resale value. I knew that before I bought it.
Interestingly though, kbb says this car should have sold for close to 20k before taxes but I got it for 17,400 with 30073 miles at the time. The resale for my car now with 36000 miles is about 14k. I want to refinance in June or July 2014.
I am sure I would need some money to pay down some of the negative equity. I was thinking 4000 but I don't know if I should pay down the principal at santander first then refinance or go directly to chase with the 4000.
I have a credit score of about 670. I never filed bankruptcy. I have one repo from 4 years ago and I went into credit card default with chase a few years back but I settled the account. That also may prevent them from giving me a loan.
Sorry for making this post so long but I was trying to give as much info as possible. I hope you can understand it. Any help is greatly appreciated.
I want to refinance my car with my bank Chase, I have a checking/savings with them but no credit card anymore (I will explain the cc situation later).
I have a 2012 Impala LTZ that I love. I bought the car in July 2013. It had 30073 miles at that time. The price of the car was $17400. The OTD was $20903. I am with Santander. The terms are 429 a month for 72 months at 13.7%. Pretty high I think especially considering these cars have horrible resale value. I knew that before I bought it.
Interestingly though, kbb says this car should have sold for close to 20k before taxes but I got it for 17,400 with 30073 miles at the time. The resale for my car now with 36000 miles is about 14k. I want to refinance in June or July 2014.
I am sure I would need some money to pay down some of the negative equity. I was thinking 4000 but I don't know if I should pay down the principal at santander first then refinance or go directly to chase with the 4000.
I have a credit score of about 670. I never filed bankruptcy. I have one repo from 4 years ago and I went into credit card default with chase a few years back but I settled the account. That also may prevent them from giving me a loan.
Sorry for making this post so long but I was trying to give as much info as possible. I hope you can understand it. Any help is greatly appreciated.
The refinance with Chase is probably going to be a no-go because of the recent bad credit history with them. I know you said a few years ago, but banks have a long term memory when you have defaulted and especially when you settled for less. Your credit score is not bad but it is also not in prime territory either. You may want to consider opening a banking relationship with a credit union right now. If you look at the auto loans approval thread it will give you an idea of what credit unions are doing financing at credit scores in your range and then you can look at them for eligibility. Most have a way for almost anyone to join. Usually with a small donation to some charitable organization.
You will want to make a payment to Santander to lower the balance before you apply for refinance through anyone else. Otherwise your initial application will most likely be rejected for loan to value of the vehicle being too high. You can sometimes get a reconsideration by speaking to someone and offering to bring cash to the deal but it's better to erase that hurdle upfront. If you continue to work on your on-time payments and let your negatives age then your credit score will probably rise a little between now and next year when you are looking for financing. And having almost a year of on-time payments on this loan will help. Good luck to you. And welcome to the forums.
Starting Score: 500's
Thanks guys.
