topic Re: Carputty? in Auto Loans

Carputty?

citymunky — Thu, 01 Dec 2022 03:06:48 GMT

While on the deep end of the web, I came across a company called "Carputty" that offers a Line of Credit (LOC) to purchase a vehicle or two or more🤪 instead of the traditional car loan. While I'm not in the market for a new or newer vehicle right now, I wanted to know that I had options if need ever presented itself. They do a soft pull to see if you qualify, and if you do they present your limit and APR before you agree to the hard pull. Out of the 17 vehicles I owned it my life, I only ever bought two from a dealership so this product is really not for me as I content owning 4 vehicles without any liens. But I figured I'll share with the group, it might help someone. Oh, BTW I was preapproved for LOC of $65K at 8.05% APR, just need the hard pull to confirm, but I'm not cuz I don't need 5 cars.

https://www.carputty.com/how-it-works#how-it-works-video

Re: Carputty?

cashorcharge — Sat, 26 Nov 2022 04:12:54 GMT

Never heard of them, though appreciate hearing about them and the option. And of course you need 5 cars...you could start your own fleet with a different one each day

Re: Carputty?

805orbust — Sat, 26 Nov 2022 21:04:19 GMT

Totally agree with @cashorcharge on this one. Ok maybe you don't need 5, but what about 4 cars and a truck?

Or just get the 5 cars and get the truck down the line. That is really interesting tho, what a concept... I, for one, will never encourage less machines in the garage. 🤣

Re: Carputty?

increasingmyfico — Sat, 26 Nov 2022 21:11:40 GMT

I wonder how they feel about commercial use. This would be great for someone doing Turo or similar. I have to do some digging.

Re: Carputty?

citymunky — Sat, 26 Nov 2022 22:03:20 GMT

@805orbust corrections 3 cars and a SUV.

Re: Carputty?

FLLGuy — Sun, 27 Nov 2022 01:41:05 GMT

@citymunky - thanks for sharing. This is a new Fintech approach which logically makes sense and possible, looks like Carputty seeded pretty decently just over $7M out the gates - let's hope it's sustainable enough. The concept turning Auto Loan into a revolving line of credit. However, reading their FAQ's - they don't report to the credit bureaus (Good or Bad you'll have to decide).

Re: Carputty?

citymunky — Thu, 01 Dec 2022 23:23:45 GMT

@FLLGuy, I did read that in the FAQs. I my case (currently) it would be a plus as I did go crazy with opening a bunch of new accounts with the last two years. However, I built a thick file that can age together for the next few years as I garden. Either way I did go back and read the fine print and learned that once approved, your LOC stays active for 2 years if their is no actively on the account. One there is actively the 2 year clock restarts. So since I'm going to be in the garden for a planned two years anyway for most or not all my INQs fall off, I bite the bullet and applied and was approved for LOC of $74k @ 7.55٪. EX was pulled with no score drop. As long as the vehicle(s) are least than 8 years old, with less than 85K miles they are clear to be added to my LOC.

Re: Carputty?

Anonymous — Thu, 01 Dec 2022 05:25:01 GMT

Interesting concept. I wonder if they hold an actual "lien" or if it is a rebranded personal loan akin to lightstream products. Regardless rates are WAY too high to be useful. Interior CU and others are offering 1.99%.

Re: Carputty?

citymunky — Thu, 01 Dec 2022 11:04:57 GMT

They hold the lien(s). While some CU do offer rates as low as 1.99%, that rate would be reserved for people with excellent credit, which I don't have. When my credit improves or my income changes, I can submit an updated application, although I'm not sure if it will be a hard or soft pull to get approved for a new rate. All things considered l, it's not the best rate I had, nor is it the worst.

Re: Carputty?

Anonymous — Sat, 03 Dec 2022 07:09:18 GMT

@citymunky wrote:
They hold the lien(s). While some CU do offer rates as low as 1.99%, that rate would be reserved for people with excellent credit, which I don't have. When my credit improves or my income changes, I can submit an updated application, although I'm not sure if it will be a hard or soft pull to get approved for a new rate. All things considered l, it's not the best rate I had, nor is it the worst.

I had a BK last year, and scores hovering in the high 600s, and I was approved at 2.24%.... so your statement about the best rates are only for excellent credit is false. Your scores are higher than mine are so there is absolutely no reason to resort to a predatory lender.

Good credit unions are out there but they require some searching. YDY but Interior CU would likely save you a truck load of $

Re: Carputty?

citymunky — Sat, 03 Dec 2022 13:47:06 GMT

Point taken. The lowest APR I even got with Navy Fed was about 5%, but even though my score is higher, I do have a charge-off on my record, and other account with a 30-day late was a auto loan.

Re: Carputty?

rgate88 — Thu, 29 Dec 2022 18:03:10 GMT

I've been sitting on a pre-approval of $104k @ 6.5% for a couple of weeks now, unsure if I'm going to pull the trigger yet. It's a really interesting concept and the fact it doesn't report isn't the worst thing in the world, but my rates on my two cars right now aren't the worst (2018 Rogue 5/2020 @ 4.24% PNC, 2020 Optima 5/21 @ 2.49% Alliance CU {STL}), so not sure it's the best for me.

Re: Carputty?

fury1995 — Mon, 09 Jan 2023 02:34:21 GMT

I've been sitting on a pre-approval of $250K at just over 7% for about a week now. Rates have notched up everywhere including Navy, PenFed and Interior. Have two leases coming due in 2 months and 11 months that I plan on keeping for a while. Main motivation is the non reporting credit line and that rates are forecasted to continue rising this through the year.

Re: Carputty?

bobvette — Wed, 15 Mar 2023 12:52:17 GMT

I was approved yesterday for $175,000.00, and rates have climbed, it is 7.0%, I have a FICO around 838 and fairly high income, but I think Navey Fed is above 5%, so when you factor in the amount, it's not horrible. It's important to point out that it is a 63 month term. I am intrigued due to the fact that they do not report, we are getting ready to build a house and have a vacation home, so keeping our DTI down is beneficial.