Who to Finance with?

[Harvey26]

Looking to buy a 2016 Honda Civic. I will be trading my car in but I am upside down in my loan but the car causes so much trouble. So I am not sure who I should finance through. Current scores 718 EQ, 741 TU and 721 EX. Should I let them just run my credit and find best offer.  I have a 2010 Honda Accord owe about 15k and car is worth about 8k via KBB. Not sure how much they are going to be willing to give me tho.

[Anonymous]

1- use Capital One's Auto Navigator. It will be a SP, you can look for a particular car, and should get a pre-approval. If you do, Cap1s are very solid.

2- go through a credit union for financing and see what they can approve you for.

Either way, DO NOT let them run your credit. Go to the dealer with your own in place and tell them you have your own financing and do not want them to run it. This may save you several HPs. If you end up using Cap1, you will know the APR and have an idea about how much you can look at getting. The dealer will have to run your credit with Cap 1 to finish the dealer, but should save you several HPs

[Harvey26]

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@Anonymous wrote:

1- use Capital One's Auto Navigator. It will be a SP, you can look for a particular car, and should get a pre-approval. If you do, Cap1s are very solid.

2- go through a credit union for financing and see what they can approve you for.

Either way, DO NOT let them run your credit. Go to the dealer with your own in place and tell them you have your own financing and do not want them to run it. This may save you several HPs. If you end up using Cap1, you will know the APR and have an idea about how much you can look at getting. The dealer will have to run your credit with Cap 1 to finish the dealer, but should save you several HPs

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Not pre-approved at all. Through Cap1

[Anonymous]

Can't imagine that with the scores you have. I was a year ago with scores about 50 pts lower.

I would try a credit union if you have one locally to deal with, or DCU. They are awesome!!

[JGGM]

Are you trying to get approved with no money out of pocket? If so, I can see why Cap1 didn't give you a pre approval. You can't roll that much negative into a 2016 Civic.....that would be like financing 140%LTV. If you are trying to do no money out of pocket, your best bet is probably a new vehicle with rebates. Used cars typically can't carry that much negative equity. 

[Harvey26]

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@JGGM wrote:

Are you trying to get approved with no money out of pocket? If so, I can see why Cap1 didn't give you a pre approval. You can't roll that much negative into a 2016 Civic.....that would be like financing 140%LTV. If you are trying to do no money out of pocket, your best bet is probably a new vehicle with rebates. Used cars typically can't carry that much negative equity. 

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Yes, Kind of spur of the moment type of thing. Had not really planned on buying a car. Will double check and see if I can find a new car in budget. 

[Anonymous]

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@Harvey26 wrote:

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@JGGM wrote:

Are you trying to get approved with no money out of pocket? If so, I can see why Cap1 didn't give you a pre approval. You can't roll that much negative into a 2016 Civic.....that would be like financing 140%LTV. If you are trying to do no money out of pocket, your best bet is probably a new vehicle with rebates. Used cars typically can't carry that much negative equity. 

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Yes, Kind of spur of the moment type of thing. Had not really planned on buying a car. Will double check and see if I can find a new car in budget. 

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My suggestions are never buy a car on a spur of a moment, doing so when you have a less than perfect financial situation makes that situation worse.  I am not a fan of rolling negative equity into a deal, in cases where there is a big rebate it makes the deal doable but the resale value of those cars are reduced by the rebate so you end up with another negative equity situation but now your dealing with new car depreciation which can be huge, like 40% of the value of the car at the 3 year mark.  If you do buy a car and roll negative equity into it buy something you can live with for the life of the loan and stick with it.  You have to break the negative equity cycle.  I speak from experience, when I was younger we had great credit and made lots of money so it was no big deal to trade in cars every couple of years and roll negative equity in but the payments grew, APR grew and eventually we realized we were paying a fortune for the privlidge of changing cars.  If you can hang on to your Honda for a while and pay down some of that negative equity it would be best because dealers make a fortune off of those of us that walk in needing them to move the numbers around.  The best deals and APR can he had when you don't need them to do anything and you bring credit union financing in and negotiate purely on price.