topic Re: Auto refinance in Auto Loans

Auto refinance

Anonymous — Tue, 13 Mar 2012 23:50:00 GMT

Hello All,

I am brand new to this forum, but I have been reading a bit. I want to give you my situation and see if you can help me out.
About 16 months ago I was financed 14k from Wells Fargo to buy a car. I got a rate of % 15.9. This is a 5 year loan.. I just received a new cc from hsbc.. If that makes a difference. I don't know my fico..but my ex plus score just hit 711. Back when I financed it was near 560. I have about 15 inquiries at the moment.

With all of that info, would it be likely for me to be approved for a refinance?

Re: Auto refinance

pizzadude — Wed, 14 Mar 2012 03:04:33 GMT

Was this HSBC card your first revolving account or do you have other CCs open as well ?

You might also try asking WF If they would do a refi to a lower rate. Occasionally banks will do this, but it never hurts to ask.

Re: Auto refinance

Anonymous — Wed, 14 Mar 2012 03:08:55 GMT

No, this is my second CC. Both are low limits - 200 and 300. I did apply at WF again today, and they approved me but will need to call e tomorow for details. Looks like I might have my answer already.

Re: Auto refinance

guydiver — Wed, 14 Mar 2012 14:07:25 GMT

@Anonymous wrote:
No, this is my second CC. Both are low limits - 200 and 300. I did apply at WF again today, and they approved me but will need to call e tomorow for details. Looks like I might have my answer already.

Let us know how it turns out, and GOOD LUCK! I think you can get refinanced with your recent credit history, even if not with WF.

Re: Auto refinance

Anonymous — Wed, 14 Mar 2012 17:40:18 GMT

I would be surprised if WF is willing to refinance their loan at a lower rate. But you can probably find a lender willing to lower your rate. Your scores are not a true indication of what your FICO scores (which the lender will pull) are. But just given the positive history on your tradelines it's probable your FICO scores are up.

The challenge you are most likely to face is whether the value of the car is enough to cover the amount needed to refinance. The problem with high interest loans is you are paying back the principal so slowly in the beginning. (I know from experience, CAP 1 @ 22%). You may end up bringing some cash to the table to get the loan balance and car value to match. But good luck in whatever you do. Sometimes we just have to ride out a bad experience for a while to atone for our past mistakes.

Continued on time payment on the car note and credit cards as well as aging of any past mistakes will only have a positive effect on your FICO scores whether you refinance or not.

Re: Auto refinance

Anonymous — Wed, 14 Mar 2012 17:47:44 GMT

Thanks for the reply. I just got a voice mail from WF (a different branch, not dealer services), saying they have great news for me. I'm waiting for the call back now. According to kbb, my car is worth 12600, I owe 12000, so I may have enough equity in the vehicle to make for a smooth app.

Re: Auto refinance

Anonymous — Wed, 14 Mar 2012 19:17:11 GMT

As an update, they called me back with an offer of 60mos. @ 11.25. I countered with % 8 and recited knowledge I got from these forums. Looks like I'm going to get it, fingers crossed

Re: Auto refinance

pizzadude — Wed, 14 Mar 2012 22:12:43 GMT

That's great ! Congrats ~ I hope that it works out for you ~ keep us posted !

Re: Auto refinance

my25reasons — Thu, 15 Mar 2012 17:24:48 GMT

That's a pretty high interest rate! WOW! I just received an email from my Credit Union - They are refinancing used vehicles at 2.74%, and with a score over 700 - you would certainly qualify for a prime rate on an auto loan. Check around and see what other banks have to say.

Re: Auto refinance

Anonymous — Thu, 15 Mar 2012 17:41:23 GMT

Are you referring to the 15.9 or the 8? Do you think I can go lower then 8? And after I already said I would take 8?

Re: Auto refinance

my25reasons — Thu, 15 Mar 2012 19:19:07 GMT

Have you signed anything? You always have the right to take another offer if you have not signed anything. It couldn't hurt to call around and see what current rates are. Also ask around with people you know, see what kind of rate they're getting and where.

I always hear Credit Union One gives great rates, but I couldn't say if they are local or nationwide. Also, it may vary depending on the state you're in, but I would think anything over 6% is only acceptable if you have poor credit. Someone can correct me if I am wrong, but at 700 credit score, you can get an unsecured personal loan at 10%, so to pay that high of an interest rate on an auto loan sounds crazy to me.

http://www.bankrate.com/finance/auto/current-interest-rates.aspx

Re: Auto refinance

Anonymous — Thu, 15 Mar 2012 19:57:34 GMT

No, I have not signed anything yet. I did apply to cap1 but was denied right off the bat.. Not sure why just yet. They still have not guaranteed me 8% so I will keep looking until they do.

Re: Auto refinance

Anonymous — Thu, 15 Mar 2012 20:00:26 GMT

Also,my 711 score is a fako, my 677 & 660 is more accurate as I got it from myfico.

Re: Auto refinance

Anonymous — Thu, 15 Mar 2012 20:31:30 GMT

Bad news.. They said the lowest they will go is 11.49 @ 48 months. I will be saving money.. Should I keep trying even after being denied by cap1?

Re: Auto refinance

Revelate — Thu, 15 Mar 2012 20:49:41 GMT

It might be worth your while to check with a CU or two, but 18 and change down to sub-12, is a nice boost. I'm hoping for similar on my current 19.35 WFDS loan, though I don't plan to apply through them. If you're shopping though for a new loan, it really doesn't hurt to look at a few in a short time period to see if you can get that 8% or even lower. It may be possible, there's a number of CU's which are spamming me to refinance my auto with them, but I'm hanging out to hit the six month mark on my current loan before I try to pull the trigger.

Re: Auto refinance

Anonymous — Fri, 16 Mar 2012 12:38:07 GMT

That is pretty cool that Wells Fargo will allow you to refinance at a lower rate even though you are with them now. I would say that is EXCELLENT customer service! I don't even know of any credit unions that would refinance their own loans at a lower rate!

Enjoy your interest savings!

Re: Auto refinance

Anonymous — Fri, 16 Mar 2012 14:52:00 GMT

Well, I was denied my chase, boa, cap1 and another third party.. One even tried to increase my rate! So, I settled with WF for 10.75% @ 60 months. I'm saving 90 bucks a month, from 357 to 267 so I'm fairly happy. Thanks for all the support.

Re: Auto refinance

pizzadude — Fri, 16 Mar 2012 15:10:14 GMT

I think that's great ~ congrats ! And you might be able to do another refi in 6 ~ 9 months or so to drop your rate even lower....

Re: Auto refinance

Anonymous — Fri, 16 Mar 2012 16:02:21 GMT

@Anonymous wrote:
@Anonymous, I was denied my chase, boa, cap1 and another third party.. One even tried to increase my rate! So, I settled with WF for 10.75% @ 60 months. I'm saving 90 bucks a month, from 357 to 267 so I'm fairly happy. Thanks for all the support.

That is awesome news, congrats!

A suggestion too, something I am doing after my recent refinance. Since you already were planning to pay $350 per month, why not continue to do so? This will get your car paid off even quicker and save you even more money on interest.

Re: Auto refinance

Anonymous — Fri, 16 Mar 2012 16:05:39 GMT

I plan on doing so, but rather save the 90 each month and make a larger payment towards principal at the end of the year. Thanks for the contribution.