topic Re: Need advice for new car loan, pls help !! in Auto Loans

Need advice for new car loan, pls help !!

pat0812 — Sun, 10 May 2015 19:25:45 GMT

Hi,

I recently crashed my car and it's a total loss

I took a loan on this car over 2 years ago, and after a year I refinanced the loan so on my credit report I have a paid off auto loan and a 2nd refinanced loan that I will pay off soon when the insurance will send me the check for the value of the car. So I should have 2 auto loans paid off on my credit report.

Is this good that I refinanced and that I will have 2 car loans paid off ? Or 1 is better ?

I'm pretty much in a hurry to buy a new car as I need one to get to work.

Could I apply for an auto loan before I pay off the current loan ? (insurance takes time to finish the whole process)

What would you recommend?

I have good credit. No baddies, about 18% UTI with 50K credit limits

My score ranges anywhere between 700-730 on all CRA.

Re: Need advice for new car loan, pls help !!

Dj4Money — Sun, 10 May 2015 19:46:01 GMT

They don't care you refinanced.

As for the owed balance on the loan and waiting for the bank to kick you down, I would wait until it shows balance of zero.

That said, if you are without a car, don't delay as long your DTI isn't out of line you should get approved easily. Does your insurance cover a rental in the meantime?

Re: Need advice for new car loan, pls help !!

Anonymous — Sun, 10 May 2015 19:53:26 GMT

Sorry to hear about the crash.. Having 2 auto loans on your report is not bad. If your income and profile supports it, you should be able to get another auto loan to get you going until you get the check from the insurance company to close out the old one.

As the other poster said, it will come down to your DTI..

Re: Need advice for new car loan, pls help !!

pat0812 — Sun, 10 May 2015 20:09:01 GMT

With the current loand my DTI is about $25,000
My income last year was $105,000
My wage income is 50K and 55K is my dividends from my business
Should I show on a loan only my paystub or also my tax return so I could show my dividends from last year?

Re: Need advice for new car loan, pls help !!

Anonymous — Sun, 10 May 2015 20:15:20 GMT

@pat0812 wrote:
With the current loand my DTI is about $25,000
My income last year was $105,000
My wage income is 50K and 55K is my dividends from my business
Should I show on a loan only my paystub or also my tax return so I could show my dividends from last year?

I wouldn't show anything until they ask. With your DTI in comparison to your salary, I think you should be fine getting another Auto loan with no hassle...

Re: Need advice for new car loan, pls help !!

pat0812 — Sun, 10 May 2015 20:31:51 GMT

I want to buy this time a more expensive car

What loan amount could I get with a 105K income ?

Re: Need advice for new car loan, pls help !!

Anonymous — Sun, 10 May 2015 20:46:37 GMT

@pat0812 wrote:
I want to buy this time a more expensive car
What loan amount could I get with a 105K income ?

What cars do you like? Any particular one? The word expensive is different for a lot of people.. Do you mean Range Rovver? See.. So what cars are you interested in?

Re: Need advice for new car loan, pls help !!

pat0812 — Sun, 10 May 2015 21:18:49 GMT

I want a Mercedes SUV
Starts around 38K and some models 48K
I wonder if I could get most amount financed or maybe is better to get a used car from 2012-2013 and save some money as value of the car goes down fast

Re: Need advice for new car loan, pls help !!

Dj4Money — Mon, 11 May 2015 00:05:36 GMT

Go to your local CU or Capital One for pre-approval. Around here (Southern California) Capital One works with MBZ dealers. Recently somebody posted getting 1.5% from Capital One with 700+ scorces.

Re: Need advice for new car loan, pls help !!

Anonymous — Mon, 11 May 2015 00:41:40 GMT

@pat0812 wrote:
I want a Mercedes SUV
Starts around 38K and some models 48K
I wonder if I could get most amount financed or maybe is better to get a used car from 2012-2013 and save some money as value of the car goes down fast

Agreed... Try the credit Union route.. Credit Unions such as Penfed and DCU have good rates. You can also try a local one also.. But have the check in hand when you go as that gives you room to get the cost of the car down..

Re: Need advice for new car loan, pls help !!

pat0812 — Mon, 11 May 2015 00:54:37 GMT

I have a loan with DCU right now on the car I total loss

Should I just wait to get the check from the insurance to close that loan and then apply for a new loan with them?

Or could they approve me with already a current auto loan with them ?

Re: Need advice for new car loan, pls help !!

Anonymous — Mon, 11 May 2015 02:37:45 GMT

@pat0812 wrote:
I have a loan with DCU right now on the car I total loss
Should I just wait to get the check from the insurance to close that loan and then apply for a new loan with them?
Or could they approve me with already a current auto loan with them ?

How much do you owe on the current loan?

Re: Need advice for new car loan, pls help !!

Dj4Money — Mon, 11 May 2015 02:48:37 GMT

Do they know the previous car is a total loss? Is the insurance company in commincation with the credit union? When I had my Protege 5 totalled, the insurance company kept me and the lender in the loop, but I still had the lender call me about the location of the car and if I was going to pay the next payment.

I told him where the car was and about the payment, I said that's money down the drain are you insane?

They paid off the car in full didn't need GAP.

Talk to DCU, if they are understanding they know you need another car and will fund another one without making you wait for the insurance to come though.

Your DTI is key.