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Established Member
rohan0784
Posts: 22
Registered: ‎04-07-2009
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just got approved looking for opinons

[ Edited ]

Hi forums,

               I just got approved for a loan at my credit union and wanted to know if i should shop around.My score is a 620 and i got approved for a loan up to 20,000 as long as i put 5000 down.I have 6 positive items inc a 5800 car loan,3 credit cards 1200 limit,lease vehicle,student loan all no late payments and here are my baddies

                                           1 charge paid charge off 1yr ago

                                           1 unpaid collection 121 6yrs ago

                                           1 unpaid charge off 18mo ago 1443.00

 

 

Message Edited by rohan0784 on 08-02-2009 09:22 AM

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txjohn
Posts: 4,214
Registered: ‎09-12-2008
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Re: just got approved looking for opinons

What is the rate and term they approved you for (APR and Years/pmts)?

 

Shopping is usually not a bad idea, but if you got a good rate and term and the amount is right and you can afford the down, then you have to decide if you want to shop around.

 

 

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09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
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Established Member
rohan0784
Posts: 22
Registered: ‎04-07-2009
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Re: just got approved looking for opinons

i got approved 66mo@12.99 if i do the full 20,000. I have a car loan right now with 2100 left that they want me to trade in but i would rather just pay it off and keep that car. I was told even if i get financed for less they still want 5000 down.Is that normal?

Starting Score: 01/15/2010 equifax 548 transunion 610 experian 594
Current Score: equifax 649 transunion 648experian 594
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txjohn
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Re: just got approved looking for opinons

Well, every lender makes their own rules for an auto loan.

 

But usually it is a percentage of the loan, like 20%, 25%, etc.

 

If you bought a $10,000 car, then if they stick to $5,000 down they are asking for 50%.

 

Basically, the rate they quoted for the credit you have is not that bad.  The down really depends on how much car you are buying.

 

I would ask them again on that part.  If you bought a $25,000 car and put $5,000 down, that is 20% and normal.  But I find it hard to believe they want $5,000 no matter the loan amount.

 

Buy the least amount of car you can (balance of price, age, quality, miles).  If the CU is insisting on $5,000 no matter loan amount, then you might consider asking anothe CU or 2.

 

 

Credit Scoring 101 - Tuscani   *  Guide to Common Abbreviations
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09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
Established Member
rohan0784
Posts: 22
Registered: ‎04-07-2009
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Re: just got approved looking for opinons

Thx for the advice i  will do some more digging tommorow

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usmc58555
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Registered: ‎02-18-2009
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Re: just got approved looking for opinons


rohan0784 wrote:
Thx for the advice i  will do some more digging tommorow

 

Do you need a car?
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Credit is not a right, but a business transaction, one that takes into account risk, and charges accordingly based on that risk.
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txjohn
Posts: 4,214
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Re: just got approved looking for opinons


usmc58555 wrote:

rohan0784 wrote:
Thx for the advice i  will do some more digging tommorow

 

Do you need a car?

 

 

Here is the guy you need for info, usmc is in the car biz I believe....

Credit Scoring 101 - Tuscani   *  Guide to Common Abbreviations
Frequently Requested Threads * FICO High Achievers  *  FICO Score Estimator


09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
Valued Contributor
usmc58555
Posts: 1,673
Registered: ‎02-18-2009
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Re: just got approved looking for opinons


txjohn wrote:

 

 

Here is the guy you need for info, usmc is in the car biz I believe....


Thank you, but I got out of that businees after the 23rd payplan change in 41 months. [How do we get paid again? Wait you mean this week or last?]

 

There really is not much advice to give, this is a "wants" decision not a "needs:"

 

factually-


OP has spotty credit so was approved with stips:

 

Up to 20K at 66 Months for 12.9% assuming he puts at least 1/4th the transaction down and nullifies his current Auto tradeline.

 

I am sure the 5K is a proportion of the amount financed of the 20K approval, he needs to ask about that.

And they do not want him to have two car loans out at once.

 

12.9% at 66 months, depending on the terms, he could be paying their over 60 months terms, he may be able to lower the rate if he dropped the loan to 60 months. (most places do have base terms set up by length of time financed)

 

Over 66 months at 12.9% OP has a payment of 21.23 for every thousand financed and a total interest payment of $401 for every K.


if the OP did a financed transaction at 18K he is looking at a payment of @ 382.


it really is up to him.

he has a car

 

I am sure his current payment is lower. 

 

Personally unless his charge offs are SOL, and assuming his car currently runs reliably I would tell him sit on his current car and negotiate/pay those off and save money to put down on his new car.

 

His car payment would only be going up.


NOW if he does want to keep his current car and get a new one....he can. Assuming he got a new car that had enough rebates to keep the loan amount to value down to a respectable number, he can have the delaership cut a check for the old car, and include that cost in the new deal and new car financing. In essence: paying off his old car to nullify the line, rolling that amount into the new deal financed assuming there are enough rebates and incentives to still keep the amount financed reasonable. Dealers do it all the time, only in this case they are not keeping the car.

 

granted that would depend on how involved in the transaction his CU is, they may want to look at the Buyers order prior to extending credit and they may kill that attempt. Either way there is going to be negative equity, that will be paid off by the money down. 

 

 

or they could be like NFCU and just issue a check that as long as the balance reflects a reasonable value of the car the transaction goes through no questions asked.

I do not know what credit union he is using or how they do business.

Signature line begins:
Credit is not a right, but a business transaction, one that takes into account risk, and charges accordingly based on that risk.
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Established Member
rohan0784
Posts: 22
Registered: ‎04-07-2009
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Re: just got approved looking for opinons

[ Edited ]
The situation i am in is as follows. The trade in car is a car that i purchased for my wife that is why i want to keep itI am able to pay the balance off myself.. The new car would be for me.As far as the loan goes the cu told me i had to put 5000 down and when i walked out the dealer i could not owe more than 20,000. As  for how involved they are i am not sure they told me i wold have to fax a purchase order showing the balance after  down payment.Also does anyone know how the downpayment factor works with a private seller
Message Edited by rohan0784 on 08-02-2009 12:39 PM

Starting Score: 01/15/2010 equifax 548 transunion 610 experian 594
Current Score: equifax 649 transunion 648experian 594
Goal Score: 700 all around


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usmc58555
Posts: 1,673
Registered: ‎02-18-2009
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Re: just got approved looking for opinons


rohan0784 wrote:
.Also does anyone know how the downpayment factor works with a private seller
Message Edited by rohan0784 on 08-02-2009 12:39 PM

For what you are trying to accomplish a private party used transaction is probably not going to work. The seller is not going to want to do more then the bare minimum to comply with the purchase order request. Then once he realises he needs to sign his name to it and to the fact you are taking money out of the deal to pay your car off I think he will balk.

 

You need a new car with rebates to make this work And make it a vehicle that will fullfill your family and any expansion of its needs for the next 4-6 years as you will probably be locked into this transaction for several years.

 

make it work? How?

 

Simple:

 

Lets say you owe 4,000 on your old car.

 

Find a Ford Fusion at internet pricing, or Xplan if you qualify- if you have a family member with A or Z plan  even better


new Ford Fusion SE with Sync

 

MSRP: $22,690.

Invoice: $21,245

 tax (7.75%) 1700 fees and stuff 500

=23,445

Add the 4000 you owe on you current car. have the dealer cut a check to you or to the finance company directly for that.

 

$27,455 (OUCH)

But

Subtract the current 1,500 in rebates

$25,955

Subtract the 5,000 down you have to put down

 

$20.955 you are in the ball park.

 

Put down another thousand with a hold check, or have better sales tax, or any of the other ways this rough estimate can be different: either way get to $19,999.99

 

Your CU is happy as they are financing only $20,000 on a $22,690 vehicle.


You get a 425 a month carpayment but do get two cars out of it.

only real issue: 5 and a half year loan.

Thats fine

save up money and before the 36 month 36K mile warranty is up buy an extended one from Ford online for cheaper then the dealer will ask you.

 


By the way it is the money you need to take out of the deal that I think is going to limit you. Your credit union may be the best way to get that accomplished.

granted: if you only owe $4,000 on your car and have the 5k to put down it may make better sense to pay your current car off and go wait a month for that to update on your bureau and see what a dealership financing can do for you.


But you do have some credit issues and without your credit report and App in front of me giving me a  better picture I have no idea if 12.9% is best you can get financing.

 

 

 

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