sccredit wrote:I don't see how you can refinance the car without paying the principal down. Why would a bank want to be undercollateralized from the very start when they don't need to be?
I'm not sure either from a straight financial perspective (though relationship building is certainly a factor); however, anecdotally some lenders (DCU, Penfed from the advertisements I've gotten) will do this, mainly to work with customers who are underwater on a current loan I suspect.
As an example from the DCU page
Qualified borrowers can finance up to 120% of retail book value or 120% of the purchase price, whichever is less
That said, with the BK on the books, it's hard to say if this meets "qualified" or not, but it's worth asking.
Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)Current Score: EQ 660, Wally TU 697, EX unknown (05/13/13)
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