topic Re: Affinity Credit Union Auto loan Advice Or Suggested lender? in Auto Loans

Affinity Credit Union Auto loan Advice Or Suggested lender?

Anonymous — Sat, 03 May 2014 00:28:09 GMT

Oldest Credit Card- 2 years 1 month
AAOA: 1 year
# of Revolving credit accounts: 7
No baddies. Consistent payments on all cards
FICO: 720+

Installment Loans: (Open) 3K- 36 Months. One Main financial. (one payment so far.. Just opened)
5 inquiries within last 12 months.

Looking for a 20K loan.

Im looking for primarily a balloon auto loan but can do with a 60-72 month standard auto loan.
Preferably Credit unions but open to all advice and suggestions.

THANKS A LOT GUYS.

Re: Affinity Credit Union Auto loan Advice Or Suggested lender?

Anonymous — Sat, 03 May 2014 00:29:34 GMT

Income is 24,960. (I know )

Re: Affinity Credit Union Auto loan Advice Or Suggested lender?

Remember0 — Sat, 03 May 2014 02:45:24 GMT

That income...is it before any taxes are taken out or is it post-tax (aka take home)?

Any down payment available?

Re: Affinity Credit Union Auto loan Advice Or Suggested lender?

Anonymous — Sat, 03 May 2014 02:50:31 GMT

Before taxes and considering no downpayment to see what id get. I

Re: Affinity Credit Union Auto loan Advice Or Suggested lender?

Remember0 — Sat, 03 May 2014 02:59:36 GMT

Gotcha. I mean you're still at 2k/month so that's not terrible loan approval wise. I don't think balloon would be the best idea to be honest because at the end you'll have a balloon payment come due and likely not enough cash to pay it off outright.

So I know you'd probably get approved at DCU. But their approval would probably be for 15k if I had to guess. You can try them though. Your local (Affinity) CU is another option as well.

Finally, you could try BofA and Cap One if the CUs didn't work out.

I think across one of those lenders, you'd get the 20k you're looking for at probably < 5%. I'm sure a dealer will get you through at <5-6% for 72 months. But generally, buying a 20k car on a 24k pre-tax income is probably not the best idea. Have you considered used maybe? You can find some pretty new used cars for ~10-15k (that 3-5 years ago were selling for 20k)? What car are you planning to buy for 20k anyways?

Just to make sure income isn't a bigger problem than I'm thinking, what's your rent/mortgage and the monthly payment on that 3k loan? Also any credit card debt?

Re: Affinity Credit Union Auto loan Advice Or Suggested lender?

Anonymous — Sat, 03 May 2014 03:11:57 GMT

If i did balloon i could always refinance the last payment no?

Also, who do you think is a better choice in my situation? Affinity or DCU. Im in NJ if that makes a difference.

I plan in getting a 2007-2009 BMW 328i. would be looking in range of 15-18K. Looking for 20K loan for taxes and registration. Id go with a 2012 coupe if i got a balloon.

Re: Affinity Credit Union Auto loan Advice Or Suggested lender?

Remember0 — Sat, 03 May 2014 03:26:32 GMT

Like explained before in your other thread, you have to bring cash if you're underwater on the balloon loan. And it's not a guarantee: remember you'd have to get approved. The same income issue could present itself as a problem.

I can't tell you which is better honestly. I don't know much at all about Affinity. I know DCU has good rates though. They'd likely approve you if they pulled a 700+, though I don't know if for the amount you want.

Honestly, I'm not sure I can recommend a BMW. Yes, it's a very nice car. But you know they tend to have high repair bills as well right? I'm not sure how old you are, but given that your oldest card is ~2 years old, I'm going to assume you're like me aka pretty young. I think you might be better served by buying something that's more affordable. Say a 2007-2009 Accord or Civic or Camry or something.

I'm not judging in any manner, we don't do that on this board. It's just that I've seen a lot of people posting on this board who have gotten in over their heads. They come here asking for advice on how to not get repo'ed, etc, but the best advice I could have given them is to never buy. Obviously I don't say that in their threads since it's too late for that. But in your case, it's not...I think you should seriously reconsider purchasing a BMW and go with a more modest car for now if at all possible. (I don't know if you are required to have a BMW/luxury car for your business or clients or something)

Re: Affinity Credit Union Auto loan Advice Or Suggested lender?

Anonymous — Sat, 03 May 2014 03:38:25 GMT

Well it's more of my affordable dream car. The only other car i'd consider is a mustang convertible. Its cheaper but im not sure since its a gas guzzler. I was considering a 2013 altima. I could get one for 16k or less but i really want a convertible.

Re: Affinity Credit Union Auto loan Advice Or Suggested lender?

Remember0 — Sat, 03 May 2014 03:45:43 GMT

Well, it's not my ultimate decision. I just want to make sure you think it over and make sure that the monthly payments are affordable even if some sort of income shock happens (say car breaks down and you need to spend that month's income on repairs, or your employer closes down and you need a month to find another job, a medical bill, etc...). If you have a 6 month emergency fund, you'll probably be okay though...well at least better than if you had no savings.

And, honestly, a 2013 Altima or a Mustang convertible won't be that much cheaper. You'd have to go "down" to like a 2008 altima or 2008 sonata or something before it becomes substantially cheaper.

Like I said before, maybe start by trying Affinity or DCU. Then try the other if the approval isn't enough. If it still isn't enough, I'd look at BofA/CapOne at that point.

I asked this a little while ago, but I think you might not have caught it because I edited my post and added this: Just to make sure income isn't a bigger problem than I'm thinking, what's your rent/mortgage and the monthly payment on that 3k loan? Also any credit card debt?

Re: Affinity Credit Union Auto loan Advice Or Suggested lender?

Anonymous — Sat, 03 May 2014 03:49:49 GMT

Monthly payment on the loan is 160/month. Rent is 365 (girlfriend pays the most) she'll be working as a nurse so I have her as backup. (35-50K income)

The loan was a debt consolidation loan. So put everything into one single payment. Im 22 and I think isnurance is gonna be my biggest problem unless I can find a company that utilizes your credit history to give substanial discounts on coverage premiums.

Re: Affinity Credit Union Auto loan Advice Or Suggested lender?

Remember0 — Sat, 03 May 2014 03:58:04 GMT

Gotcha, yeah you'll most likely be approved for a loan at one of those places I suspect. But erm, I'd work on saving some money if you can just for your own good. I don't think it's a good idea to count on your GF as a backup plan. I'm also around your age: from what I've observed, relationships at our age can be flaky.

Depends where you live. In NJ, yeah, insr will probably be pretty high. Also keep in mind your auto insurance credit score is likely to be very different from your regular FICO. Auto insr FICO likes old, established histories. So I have a pretty good FICO (generally 740+ depending on bureau), but my auto insurance score is pretty poor (at least per creditkarma, you can look at your auto insurance FAKO score there too). It's just because my AAOA is pretty new, I have a lot of newer accounts, and the lack of a gas card/auto loan/mortgage. But regular FICO is high because it cares more about my util (very low) and perfect payment history.

Re: Affinity Credit Union Auto loan Advice Or Suggested lender?

Anonymous — Sat, 03 May 2014 12:10:57 GMT

Gotcha. Yea our relationship has been rocky but we always make sure financially to support each other; but you can never be sure that will continue.

Yea, my insurance score might be extremely low w/ only 1 year AAOA and plus i plan on cancelling one of my credit cards AFTER I get my car so my score/rate isnt affected prior to applying for loans. High interest rate.. but also $50 annual fee and $15 maitinence fee after year two lol. I just needed it at the time for an emergency. I dont think my score will take too much of a hit though since its one of my older cards.. so my AAOA should go up.. until i replace it with an amex or DCU credit card lol.

**I've decided to try DCU as a primary choice for hte loan and credit union. Their ratings are a lot higher**

Do you happen to know any other lenders offering balloon auto loans besides penfed? I fiigure I could pay a little hgiher every other month so balloon is lower and i could always refinance it at the end.