topic Re: I just bought a car... in Auto Loans

I just bought a car...

ihatemyscore — Mon, 18 Mar 2013 05:04:55 GMT

I just bought 13` Chevy Cruze LT,.I think I just got ripped off with all the optional stuff they said I had to get or else the ltv would mess up my intrest rate.

I was approved for 25k @ 11.9 through GM. The MSRP was 17k with a dealer rebate of 1000. I put 1500 down, they bought my old car which was negative in equity... 5k car was worth 2500... They paid it off.. but I ended up with a 24k car loan... WHAT DO I DO

Re: I just bought a car...

ihatemyscore — Mon, 18 Mar 2013 05:09:37 GMT

I love the car don't get me wrong, but in my case I plan on to keep this car.. should I keep the warranty?

I got the warranty, gap and paint and interior.. if its worth it ill keep it but I need you guys opinion! I want to refi later with navyfed but I don't wanna get rejected.

Re: I just bought a car...

Anonymous — Mon, 18 Mar 2013 05:40:57 GMT

I think extras are a bad idea.

You can always find them cheaper elsewhere.

The dealer told you that you had to buy the extras? That is not at all the case, that just throws off the LTV.

Get LTV in check to the point that you don't need Gap.

Make payments over the minimum, then refi with navy once your scores get a bit better.

Re: I just bought a car...

ihatemyscore — Mon, 18 Mar 2013 05:41:15 GMT

and the car came out to 22k...

I think I want to cancel the gap and paint and fabric .. lol and should I cancel the warranty??? or negociate it? since these were optional do I have any rights to cancel?

Re: I just bought a car...

Anonymous — Mon, 18 Mar 2013 06:02:49 GMT

@ihatemyscore wrote:
and the car came out to 22k...

I think I want to cancel the gap and paint and fabric .. lol and should I cancel the warranty??? or negotiate it? since these were optional do I have any rights to cancel?

I think you should cancel everything and put more money down. Did you negotiate the price of the car at all? I posted about a chevy cruze the other day. Was I talking with you? I said how much off MSRP the price should be.

The lowest price MRSP for that car is $18k, and you should be able to get it for $15k. Actually, looking at your score and recent BK. You are lucky to be driving a new car Congrats on the approval.

Re: I just bought a car...

sccredit — Mon, 18 Mar 2013 15:31:59 GMT

DO NOT CANCEL GAP!

With all of the extras added on PLUS the negative equity in your trade your LTV is out of whack and if something happens to the car you will be paying out of pocket! Trust me, GAP is most always a good idea, especially when you have had to pay out of pocket on a totaled car!

Re: I just bought a car...

davefromca — Mon, 18 Mar 2013 18:14:33 GMT

I'm pretty sure if you got a loan your bank requires you to have gap....but ya those warranties almost always work out in their favor which is why they push them so hard.

Re: I just bought a car...

ihatemyscore — Mon, 18 Mar 2013 20:21:17 GMT

Well the credit manager @ GM did a double look and denied me so I have to take the car back anyways!

WOW...

I have a pre approval through roadloans for 21k @ 20 % but in a yr I could refi with navy... what should I do?

I want to take this car back and just start over..

Can anyone help me? Before I get into a mess again! lol

Re: I just bought a car...

Anonymous — Mon, 18 Mar 2013 20:34:59 GMT

@ihatemyscore wrote:
@Anonymous the credit manager @ GM did a double look and denied me so I have to take the car back anyways!

WOW...

@I have a pre approval through roadloans for 21k @ 20 % but in a yr I could refi with navy... what should I do?

I want to take this car back and just start over..

Can anyone help me? Before I get into a mess again! lol

Do not take the 20% loan.

Take your $1,500 bucks and buy a cheap car with cash on craigslist.

Re: I just bought a car...

ihatemyscore — Mon, 18 Mar 2013 20:39:26 GMT

Best advice all year. I guess I will continue to use my vehicle until my credit significantly improves.

hope your around in a yr and a half lol.

Re: I just bought a car...

Anonymous — Mon, 18 Mar 2013 21:17:35 GMT

@ihatemyscore wrote:
Best advice all year. I guess I will continue to use my vehicle until my credit significantly improves.

hope your around in a yr and a half lol.

At that point I will try to convince you not to by a chevy

What are you driving now?

Re: I just bought a car...

ihatemyscore — Mon, 18 Mar 2013 22:39:38 GMT

2004 hyundai elantra gls which I am upside down in on a 29% rate

have 5200 on it left. I am gonna put that 1500 down on it and then pay 550 a month. payment is 249 a mo right now.

Re: I just bought a car...

Mike360 — Mon, 18 Mar 2013 23:10:30 GMT

my god 29% how is that even legal. hyundai's are nice i just bought a new sonata. my advice is to stick with the car you got. pay off the current loan and get your scores to 700+. save for a good down payment if you wanna get a new car.

Re: I just bought a car...

Anonymous — Mon, 18 Mar 2013 23:30:36 GMT

@ihatemyscore wrote:
2004 hyundai elantra gls which I am upside down in on a 29% rate

have 5200 on it left. I am gonna put that 1500 down on it and then pay 550 a month. payment is 249 a mo right now.

Sounds like a good plan.

Try calling the lender and getting an APR reduction. Say something about having another lender that with refi the car, but you want to give them a chance to keep your business by lowering your apr.

Re: I just bought a car...

ihatemyscore — Tue, 19 Mar 2013 02:01:23 GMT

I did that.. they responsed. "All "Out" loans are 29% apr, sorry".

I am just going to pay it off this year.. and run it to the ground...

They dont even report to the credit beaurs!

Re: I just bought a car...

Anonymous — Tue, 19 Mar 2013 03:53:55 GMT

That sucks. Who suckered you into that loan? Sorry to be harsh, I am glad you found this forum.

Re: I just bought a car...

ihatemyscore — Tue, 19 Mar 2013 05:09:03 GMT

Kia in EL CAJON. Worst service, bad brand, liars. Truthfully, NO don't worry! I will take your criticizim. Long story why I got the car, again one of those stories like I needed the car...

Thank you.. I am eager to learn how to properly buy a car.. could you please explain a little bit?

Re: I just bought a car...

Anonymous — Tue, 19 Mar 2013 05:35:57 GMT

First off, don't buy a car made in Korea (Hyundai or Kia). Many on this forum do, but I think it is a bad move for many reason. I won't go into that.

Step one: Save your money for a large down payment and have a steady reliable income

Step two: Go out and get a pre-approval. Stick to credit unions and big name banks that you have accounts with. Tell them how much you have to put down. Your BK might be a road block for a long while.

Step three: Get a general idea of what car you want. Narrow it down to a few. What are your needs? What are your priorities? What is your budget? Not just for the car, but also for gas, insurance, and maintenance. What kind of climate do you live in? (Actual questions, reply here and I'll give you some car suggestions.) Then test drive lots of cars.

Step four: Get in contact with internet sales managers at several dealers within the same make. Get the dealers competing.

Step five: Go to the dealer that seemed like the best to deal with.

Step six: Walk at the slightest hint of trouble. The dealer will 99% of the time call you back in.

Step seven: Go back to the dealer and walk again if you need to. (Helpful if you find a dealer that isn't too far of a drive.)

Step eight: Agree on the terms of the car. Either use your pre-approval, or use it as a bargaining chip to get a better rate from the dealer.

Step nine: Don't get suckered into anything from the finance guy. Don't let him talk you into anything. You can always buy it later. At this point you are under enough stress and it will be hard to make a rational decision about a warranty ect. Your down payment should be enough to make it so that you don't need gap.

Step ten: Enjoy your car and be sure to write a yelp review about the dealer. A negative one will help any problems get resolved, and a positive one is a nice gesture. Plus it can lead to things like a free oil change or car wash

Re: I just bought a car...

ihatemyscore — Tue, 19 Mar 2013 06:05:28 GMT

You seem to be very knowledable and I appreciate all your help and nice convo.

I think it would be best that I just stick with the car I have now and start saving up a couple grand for a car cash.. I think I really need to just stay in the garden until I have 0 inquiries..

Let me ask you this.. when apping for new credit now since I have more than enough for now... Should I wait 2 years from now to let every single inquiry drop? I have way to many and I want a clean start. I know it's hard but it will be a good journey.. right?? lol..

I really want 0 inquiries on all reports.. I know if I waited until 2015 and all inquiries are dropped and my payment history is 24-32months..I know my score should be high 6's to low 7's...

Re: I just bought a car...

Anonymous — Tue, 19 Mar 2013 06:22:15 GMT

@ihatemyscore wrote:
You seem to be very knowledable and I appreciate all your help and nice convo.

I think it would be best that I just stick with the car I have now and start saving up a couple grand for a car cash.. I think I really need to just stay in the garden until I have 0 inquiries..

Let me ask you this.. when apping for new credit now since I have more than enough for now... Should I wait 2 years from now to let every single inquiry drop? I have way to many and I want a clean start. I know it's hard but it will be a good journey.. right?? lol..

I really want 0 inquiries on all reports.. I know if I waited until 2015 and all inquiries are dropped and my payment history is 24-32months..I know my score should be high 6's to low 7's...

I agree on waiting in regards to the car. I was pretty much just giving info for a year or so down the road.

As for INQs. They don't have that much of an impact after 6 months and they have no impact after a year. No need to wait 2 years for them to drop.

For you, the key thing will be that nasty BK on your report. That will have the main impact, not the INQs. Even if you have a score of 700. Many lenders will still run from you, especially the ones that you burned in the BK. Auto loans are generally easier to obtain than credit cards after a BK. It will be hard to obtain unsecured credit. NFCU will be your friend in that regard. They may also be your friend later on for an auto loan. During the next couple years, grow your lines with them. The trust they show you will help other lenders trust you. High limits lead to higher limits and generally higher limit cards come with better rewards.