Swap: w/ a Financed Trade In.....

[Anonymous]

*Original car loan $11,500 @16.95% (scores were LOW 600 when approved)

*Newer Car $13,000 (need bigger, just had my 3rd child)

*Dealer is willing to give me $7K on trade in (it's a Dodge minivan, because of the car crisis-they said thay can only give me 85% of the value of the car-not 100%)

*DH co-signed on original loan

DH currently gets unemployment and I make about $3500/mo  scores are EQ- 650 TU- 668 (EX- FAKO 650)

What are the chances I could get approved with a better rate and w/ no co-signer this time?  I would like my payments to be under $300/mo.....

ANY THOUGHTS?

[Anonymous]

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@Anonymous wrote:

@*Original car loan $11,500 @16.95% (scores were LOW 600 when approved)

*Newer Car $13,000 (need bigger, just had my 3rd child)

*Dealer is willing to give me $7K on trade in (it's a Dodge minivan, because of the car crisis-they said thay can only give me 85% of the value of the car-not 100%)

*DH co-signed on original loan

DH currently gets unemployment and I make about $3500/mo  scores are EQ- 650 TU- 668 (EX- FAKO 650)

What are the chances I could get approved with a better rate and w/ no co-signer this time?  I would like my payments to be under $300/mo.....

ANY THOUGHTS?

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First of all: The general rough rule of thumb is that every thousand dollars financed is $20 a month for 60 months.

So if you simply look at your new car your payment is going to be around $260 a month.

Not counting your negative equity.

You have not stated how much you owe on your current car, and how much the dealer is willin gto give you.

3500 a month is that gross or net? if gross you probably need your Hubby on your ap. To be honest you have to many variables for anyone on there bards to tell you exactly what will happen---a Dealers finance department should be able to help you. 

[Anonymous]

I thought I was clear, but here it is again:

 *11,500 is what I owe (pay off)

 *Dealer is willing to give me 7K for current car

 *"New" car is 13,500

$3500 is net income individually/per month

Hope that helps

[Anonymous]

Original car loan $11,500 @16.95% (scores were LOW 600 when approved)

Was not clear, to me at least.

Ok so lets do math:

11500-7500=4,000 negative.

New Car 13,500+4,000 plus 1,500 (tax tile fees)= roughly $19,000

So you will be trying to finance $19,000.

Most banks when financing do NOT go over 1.20 Times the Book Value of the car you are buying which means you must show a Book value of $15,834

Assuming a deal can get done you will be looking at close to a 400 a month payment for 60 month.

No one in these forums can answer any more to that since only a dealerships finance department can construct a deal on this and know where to try to sell it.

Have you talked to anyone at the dealership?

[Eager2Learn]

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@Anonymous wrote:

@*Original car loan $11,500 @16.95% (scores were LOW 600 when approved)

*Newer Car $13,000 (need bigger, just had my 3rd child)

*Dealer is willing to give me $7K on trade in (it's a Dodge minivan, because of the car crisis-they said thay can only give me 85% of the value of the car-not 100%)

*DH co-signed on original loan

DH currently gets unemployment and I make about $3500/mo  scores are EQ- 650 TU- 668 (EX- FAKO 650)

What are the chances I could get approved with a better rate and w/ no co-signer this time?  I would like my payments to be under $300/mo.....

ANY THOUGHTS?

---

 

Explain to the dealer that  because of the car crisis, I can only pay you 85% of this vehicle's value- not 100%.    I mean, it is the same car crisis for everyone, right?   Compare apples to apples, if you are trading a used car for a used car the dealership should have no problem pricing on the same criteria.  If they want to give you 85% of the trade-in value on yours, you should have no issues buying theirs for 85% of the retail value.

[Anonymous]

Okay.  Excellent point.

Though my car now is a Dodge and the car we want to get is a Chevy.....do you think that would matter?