Re: Auto loan advice from an Underwrite
[ Edited ]
10-22-2012 07:27 AM - edited 10-22-2012 07:47 AM
As a GSM have you ever handled a NFCU loan check?
I'm using my NFCU loan check. The car was ordered Friday. I'm taking delivery overseas... does NFCU pay the dealer off of the VIN # and make/model of the car? We wont have a vehicle title til about 6 weeks after European delivery as the car will be in transit from Sweden to the US.
My dealership was worried that they would not get funded 30 days before I leave for Sweden; the program requires the car dealership to be paid at least 30 days before we fly out
I have in fact. NFCU checks are normally presented as a draft to the dealer with conditions that the dealer must meet both before cashing the check and after. Before the check cashes, there are normally restrictions on collateral type, age, and miles. If all of those are met the dealer can cash the check as long as they agree to the after sale conditions which are normally title and registration related. These normally include requirements for the dealer to present a completed title with NFCU's valid first lien within so many days (normally 30-45 days). Other conditions would be no lemon law or salvage vehicles, etc.
If the dealership takes too long to present the titkle or the car is a salvage or a buyback vehicle, the dealer must pay the loan off per their agreement when they cashed the check.
Being that your car will not have a title for an extended period of time, you would want to contact NFCU and see if this will be an issue. The dealership will more than likely not allow you to use the check if there is a timeframe that they cannot meet as they are financially liable to NFCU at that point. They will more than likely attempt to make you go with financing that they arrange through their captive. If this is the way you have to go, I would not worry, because you can always refinance with NFCU after the car arrives in the states.
NFCU said 90 days... We can use US Bank if need be for the financing, and then re-finance with NFCU if we have to. The dealership wanted me to go with this option as it is what they are most familiar with. I called NFCU while in the dealerships finance guy's office, they said they don't need the title, just the registration, and we have 90 days to get that.
My credit is great except for a repo from 2006 that appears as a judgement on my EX report. (it does not appear on EQ or TU)
My husband's is not great, foreclosure from early 2010. NFCU goes off of the primary applicant when determining rate, so that's why we went with NFCU since I felt like we needed my husbands income to be able to qualify for the loan (I carry two mortgage payments on my income, so my DTI is very high, my husband has no debt in his name b/c his credit is bad and we don't want to pay high rates).
The car is 48.6k, income is 180k between the two of us (two w-2 jobs, rental income 2200 per month, child support 300 per month, VA disability pay 500 per month)
The loan will be for 45k, we are putting 3.6k down as deposit + cash down. NADA retail on the car is over 50k. Dealer Invoice with our options is 47.2k. MSRP with our options is 50.2k. My NFCU check says that they will pay up to 125% of NADA Retail price, so I think we are fine as far as the collateral goes, especially since we are putting cash down (45k was the most I was willing to finance).
Also, Oklahoma is not a title holding state... so NFCU has in their system that they don't need the title, they just need the paperwork saying that they are in 1st lien position.
Thanks for your advice... I'm definately more open minded as far as working with US Bank if we have to, now that I've gotten your input...
Thanks so much!
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