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Springboard vs. Cap One-Who to use?

Regular Contributor

Springboard vs. Cap One-Who to use?

Springboards rate is about 2 points better for me than Cap One, has cheap gap ins, but charges a 595.00 loan fee. I uploaded all my docs to them and awaiting verification from them; loan would be joint with me and my wife.  Cap one seems simpler; uploaded POI ,  no co-signer needed as it did not affect rate when I tried with co. Question is would I be in a stronger negotiating position using Cap one or Springboard since Cap one seems simpler and I can finance car in my name only; haggle very hard with dealer on a move it off the lot today type of deal which I can do with Cap One but with with Springboard have to set up closing appointment and maybe have to come back another day. 

 

 

Message 1 of 5
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Valued Contributor

Re: Springboard vs. Cap One-Who to use?

 I am extremely against the idea of paying for gap insurance.  It's a scammy way to get more money out of folks.  Do you absolutely need gap?

 

My rule (for everyone) is to never buy a car at more than 80% LTV.  If you can't afford to bring the note down to 80% LTV, buy something cheaper.  It'll pay huge dividends in interest/fees paid, and you'll always be able to trade or sell without being short of your note balance.

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Message 2 of 5
Regular Contributor

Re: Springboard vs. Cap One-Who to use?

With all due respect, if I followed the 80 % rule I would never have owed a car or a house. Rolling in negative equity so yes I need GAP.
Message 3 of 5
Valued Contributor

Re: Springboard vs. Cap One-Who to use?


FMC wrote:
With all due respect, if I followed the 80 % rule I would never have owed a car or a house. Rolling in negative equity so yes I need GAP.

Yeah, I've heard this over and over all my life, but those same people have never actually owned a car or house, just financed a portion of one until it's time to finance a portion of the next one.  And in 20 years, they'll still never own a car or house!

 

The difference over 20 years of negative equity financing is incredible and usually amounts to something close to $700,000 in wealth difference between identical parties, one paying a negative equity loan and one paying a positive equity loan.

 

I do understand "want" for a bigger nicer house/car, but honestly and with all due respect back I'd personally get as cheap of a car as you can get with that negative equity rolled in, and plan so that your next car in 3-5 years is a positive equity loan!

 

Just wanted to put in my two cents because it can help you save a ton of money over the next decade and roll that into even bigger savings the rest of your life.

FICO8FICO8Visit my posts:
03/1712/17My 11 Rules to Credit RebuildingFree FICO Scores!
550EX
570TU
559EQ
710EX
701TU
734EQ
FICO alert: why did my credit score drop???
Message 4 of 5
Regular Contributor

Re: Springboard vs. Cap One-Who to use?

I am going to purchase cheapest new car that I will like to keep until after note is paid. I am going to spend an extra 2k getting features I like on it so I will want to keep it for a long time. Going to purchase new Nissan Sentra SV for 14,800 before TTL ect, if I buy base model for 12,999 I may not want it long term since SV has upgraded cloth seats, backup camera, ect. I an going to use Springboard I decided since rate is about 3.5% lower than Cap One and no need for dealer to run my credit which I am sure they will not like. I agree with your above post about lifetime wealth accumulation, I have 150k in home equity I will not touch and will not raid my 401k either and rather pay out of my income a little more in interest, improve my credit going forward and refi car in 3 years rather than tap my assets.
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