topic Re: Refinance in Auto Loans

Refinance

CostantinoA — Fri, 21 Aug 2015 05:54:42 GMT

Hello everyone:

I have two Auto Loans! One was opened Aug 5, 2015 and one Aug 12, 2015. I need to refinance them as the interest rate is way too high.

The one on August 5 is 9.90% for 72 months.

The one on August 12 is 16.99% for 72 months.

What is my best option for refinance with my current scores?

Thanks.

Re: Refinance

StartingOver10 — Fri, 21 Aug 2015 10:14:34 GMT

@CostantinoA wrote:
Hello everyone:

I have two Auto Loans! One was opened Aug 5, 2015 and one Aug 12, 2015. I need to refinance them as the interest rate is way too high.

The one on August 5 is 9.90% for 72 months.

The one on August 12 is 16.99% for 72 months.

What is my best option for refinance with my current scores?

Thanks.

If it is true that you have 82 inq's on EX right now and 44 inq's on EQ and 21 on TU, why don't you just wait until some (or all) of those inq's drop off?

IMO having that many inq's in less than two years is a red flag to any decent lender with a good interest rate.

Re: Refinance

CH-7-Mission-Accomplished — Fri, 21 Aug 2015 15:58:27 GMT

Wow, you have over 160 inquries across the three CRA's. That I think is a new record for what I've seen! You don't have very many cards, so you must have a lot of declines unless the two car purchases generated like 80 inquiries.

Anyway, for car buying inquiries are less important. What matters most is your FICO scores and your total monthly income and total monthly debt payments. Alos, how is your utilization?

Have you tried Capital One? I would try to find lenders that do automatic computer approvals if your scores are good. I think those inquiries will give most underwriters a heart attack.

Re: Refinance

CH-7-Mission-Accomplished — Fri, 21 Aug 2015 16:03:25 GMT

I just noticed that both of these auto loans are like two weeks old. Your scores are surely lower now than they were when you got these loans, so I would expect you would be looking at higher rates. Also, refnancing does not let you into the network used by dealers, so you are more in the regular consumer market of using credit unions.

When you drive the car off the loan, it loses 20% of its vaue, so you are likely upside down on these cars unless you put more than 20% down.

I would double up on payments and wait a year. I think to do otherwise will just incur even more inquiries, though at this point I doubt that new inquiries will hurt your score -- only prolong the time for them to drop off.

Help us to understand what is going on with you.

Re: Refinance

Anonymous — Fri, 21 Aug 2015 18:27:01 GMT

Wow that inq, you made a record! If I were you I'll hold on to that because of the inquiries, you might get declined.

Re: Refinance

CostantinoA — Sat, 22 Aug 2015 08:10:54 GMT

I am not even really sure if that inquires are correct. I got the amount off Credit Karma.

Re: Refinance

CostantinoA — Sat, 22 Aug 2015 08:12:29 GMT

I understand that. I did put 20% down on both cars. I understand they lose value. I do not know why I trade so often. I just like having a new car but I know I am paying thousands for stupid reason. I know once I get the car I want, Escalade, I will stop and hold onto it for awhile.

Re: Refinance

CostantinoA — Sat, 22 Aug 2015 08:13:05 GMT

I am not sure the inquiry count is correct. I obtained it from Credit Karma!

Re: Refinance

Anonymous — Sat, 22 Aug 2015 13:39:18 GMT

@CostantinoA wrote:
I understand that. I did put 20% down on both cars. I understand they lose value. I do not know why I trade so often. I just like having a new car but I know I am paying thousands for stupid reason. I know once I get the car I want, Escalade, I will stop and hold onto it for awhile.

That's a bad habit, and if you knew you want that Escalade in the first place why not just hold on to the money you got before your purchased those to vehicles? And wait for your credit to go up then buy the Escalade. To what I see, you're too itchy to always get a newer car.

Re: Refinance

CostantinoA — Sun, 23 Aug 2015 02:04:20 GMT

I know it is a bad. The thing is I brought my old car into the service department and it needed 2k worth of work. I could not see dropping 2k into a car I was going to trade soon so I purchased a new car.

Re: Refinance

Anonymous — Sun, 23 Aug 2015 02:35:53 GMT

@CostantinoA wrote:
I understand that. I did put 20% down on both cars. I understand they lose value. I do not know why I trade so often. I just like having a new car but I know I am paying thousands for stupid reason. I know once I get the car I want, Escalade, I will stop and hold onto it for awhile.

If you put 20% down, how did you end up financing 30K on a malibu LT? Did you have negative equity already?

Re: Refinance

CostantinoA — Sun, 23 Aug 2015 22:54:20 GMT

Yeah! I had a 2009 car that I obtained with 28% interest. I had it 10 months and I drove the **bleep** out of it so when I traded it in, I owed way more than it was worth. I went to the dealer at first because it needed repairs. The dealer said it would be 1200. I was planning on trading it in soon and didn't want to drop 1200 into it so I walked across the building and bought a new car.

Re: Refinance

Anonymous — Sun, 23 Aug 2015 23:21:14 GMT

I am in shock right now as I read this. Why in the world did you buy two cars less than two weeks apart?

How much are you financing on each? How old are the vehicles?

You are the dream that keeps on giving. And with the # of inquiries you got post-purchases, your scores are lower than they are listed.

Are those Fico or Fako scores?

Honestly I think that you have very little hope to get refi for either of those cars with your scores and record setting inquiries.

The bet approach for you is to get on a budget, set some rational priorities, rethink what is important carwise, and aggressively pay those vehicles off.

Do you really NEED two vehicles? How much do you make monthly? I'm still in shock.

Re: Refinance

CostantinoA — Mon, 24 Aug 2015 02:15:52 GMT

I bough two 2015 cars. One had 4 miles and one had 5. I was making 60k a year take home. My wife was offered a job but needed a car to get there so our salary is now over 100k a year combinded. They are FICO scores. I just got the cars Aug 5, 2015 and Aug 12, 2015. If I can get approved for 60k in auto loans, I am sure I can get a refi in 6 months. I am on a budget. We take home over 8k a month and our expenses are 3k. We are saving the rest. I could pay off both cars very quicky but the point is to buld the credit. People are saving need it 24-36 months on one loan. I do not know why such a shock. There was a clear logical reason behind getting the two cars. We added 3,333 a month to our income and the car cost us about 550 a month with insurance, payment and fuel. Sounds like a win for us.

Re: Refinance

EddieK — Mon, 24 Aug 2015 04:09:33 GMT

@CostantinoA wrote:
I bough two 2015 cars. One had 4 miles and one had 5. I was making 60k a year take home. My wife was offered a job but needed a car to get there so our salary is now over 100k a year combinded. They are FICO scores. I just got the cars Aug 5, 2015 and Aug 12, 2015. If I can get approved for 60k in auto loans, I am sure I can get a refi in 6 months. I am on a budget. We take home over 8k a month and our expenses are 3k. We are saving the rest. I could pay off both cars very quicky but the point is to buld the credit. People are saving need it 24-36 months on one loan. I do not know why such a shock. There was a clear logical reason behind getting the two cars. We added 3,333 a month to our income and the car cost us about 550 a month with insurance, payment and fuel. Sounds like a win for us.

There are a couple of issues with your reasoning above. #1, being approved for 60K in auto loans on 60K income, although feasible by your situation, is a choice almost no one should make. Secondly, unless you pay almost zero taxes, you are not taking home 8K each month on 100K income. So ultimately the problem here is you're making a mockery of what this site is about, which is to hopefully provide useful information for others while expecting simple truths about your situation in return. One cannot go without the other. I wish you the best of luck in getting that Escalade, somehow I think you already own it in your mind.

Re: Refinance

CostantinoA — Mon, 24 Aug 2015 04:20:50 GMT

100k is my net after takes. I never pay federal taxes. I have 3 kids, interest on student loan debt and married. I was approved on my income alone for the two auto loans no problems and no documents needed. The only reason why my scores are so low is because I neglected my credit for so long and paid cash for everything. As I am getting older, I am realizing that I need to build my credit. If it wasn't for that, I would have paid cash for the cars. I speak the truth on my situation. Why would I not? I don't even know anyone on here. I am not trying to impress anyone. What would be the point of asking questions and trying to better my situation if I do not provide all the facts. That is stupid and a waste of tine. You seem mad. Maybe you need a hug. Stop being so angry.

Re: Refinance

CostantinoA — Mon, 24 Aug 2015 04:23:36 GMT

plus this does not include the 482 a month I receive in court ordered child support PER kid that is direct deposited in my checking every two weeks by the district attorney.

Re: Refinance

CH-7-Mission-Accomplished — Mon, 24 Aug 2015 04:32:38 GMT

If you have the cash to pay off one or both of these loans, you should pay off that loan at 16.99%. You can't get that kind of return on investments or savings, especially in this overheated market. The one loan at 9.9% s not a good rate (it is five times the going rate of 2%), but it's not 26%.

In terms of having installment loans to rebuild credit, you could open a credit builder loan with a credit union for $500 for up to 84 months and end up paying $5 a month on average in interest at 3%. You get the exact same benefit as you would paying off a car loan of 30K.

No one is angry with you. You just present an odd scenario and people here are used to sniffing out Internet trolls (not saying you are one). Sometimes threads go on for 50 pages and it was a poster just pulling everyone's chain.

I would encourage you to hang out here and read a lot. You are not a very sophisticated borrower, but most of us started that way. In time, looking back at this post, you will understand why people thought it didn't add up.

But welcome and don't feel beat up. This get rambunctious around here sometimes, but it's a loving sort of sibling rivalry.

Re: Refinance

EddieK — Mon, 24 Aug 2015 04:36:13 GMT

@CostantinoA wrote:
100k is my net after takes. I never pay federal taxes. I have 3 kids, interest on student loan debt and married. I was approved on my income alone for the two auto loans no problems and no documents needed. The only reason why my scores are so low is because I neglected my credit for so long and paid cash for everything. As I am getting older, I am realizing that I need to build my credit. If it wasn't for that, I would have paid cash for the cars. I speak the truth on my situation. Why would I not? I don't even know anyone on here. I am not trying to impress anyone. What would be the point of asking questions and trying to better my situation if I do not provide all the facts. That is stupid and a waste of tine. You seem mad. Maybe you need a hug. Stop being so angry.

I'm not sure how you came to the conclusion where I was upset. I have a lot of fun with trollish behavior.