topic Re: how hard would be to get ~18k auto loan? in Auto Loans

how hard would be to get ~18k auto loan?

Anonymous — Fri, 17 Apr 2009 00:39:41 GMT

input data:

- my fico score around 630 (Equifax)..recently dropped down because of balances increase on my cc.

- going to pay down cc completely along with other accounts (macys/old navy etc)

- currently have 21k balance on my auto loan (9.5% for 60months)

- no late payments whatsoever

- oldest credit account is about 2y

plan:

- need to get different car since would be changing job in about 5 months. Would need to commute much more

- looking to get used acura/honda for around 17k

- try to trade in current car for about 19k which will puts me on negative diff (~2k diff)

Q: as title says. Trying to get some input on what would be the best plan here.. thoughts?

--thanks in advance

Message Edited by protege on 04-16-2009 05:39 PM

Re: how hard would be to get ~18k auto loan?

trudawg660 — Fri, 17 Apr 2009 00:48:50 GMT

Welcome to the board,

it would be way smarter to sell your car and not trade it in, with a trade in of 19,000 you should be able to get 21,000 or more selling it to someone else. and where do you plan on getting a loan though?

Re: how hard would be to get ~18k auto loan?

Anonymous — Fri, 17 Apr 2009 01:35:02 GMT

thanks for welcoming in. I was around for quite a long time just did not post..

on subj: I dont have time to deal with selling plus dont like dealing with stupid ppl comming in etc etc

I think you got a point

ahh.. and regarding lender... I would like to go with honda financial services since car I consider buying is certified and there are special low financing for certified vehicles. But due to legal issues (status expiration) I think I would not be able to do that since they check the "poof of stay" (I call it that way); lets say I want to get loan for 60 months.. would not be able to do that since my status here expires in about 2 years.. etc

However on other side it would be disapointing getting 8% instead of say 4%.. already feel the pain...

thanks for reply

Message Edited by protege on 04-16-2009 06:35 PM

Re: how hard would be to get ~18k auto loan?

trudawg660 — Fri, 17 Apr 2009 03:12:23 GMT

Going though the finance through the dealership can get you a low apr for the first 24 months. but for the most part is a bad idea, to me anyway. they are more willing to take advantage of a person more than your personal bank or credit union. and with a credit union they don't check anything "to my knowledge" anything more than your credit history and credit score and your household income. the status expires seem to come in hand more when you are trying to lease. BUT I MIGHT BE WRONG. In my opinion you should talk to a credit union and take that 1 percent higher apr and get treated like a person, than go through a dealer and get treated like a number on paper with with a down payment. And also i have heard of times when people agree to a APR with the dealer and finance department and after you take the car home for a couple days you get a phone call saying you didn't qualify for negotiated APR and now its like 3 or 4 percent higher.

Am about to apply for a new car loan myself in the next couple weeks. and it will be though a credit union.

Message Edited by trudawg660 on 04-16-2009 08:12 PM

Re: how hard would be to get ~18k auto loan?

Anonymous — Fri, 17 Apr 2009 14:48:39 GMT

thanks for suggestion and thoughts. Hopefully cs would go up soon since I almost paid cc/store cc off.

I never had a chance to deal with personal banks or credit unions. Any advice?

Getting back to hfs.. two options.. if you take car but they still need to verify smth - they force you to sign a notice that your apr may be reconsidered after docs reviewed. Happened to a friend of mine. Same with loan term.. they give you loan for exact time you can be in valid status in US.

But I hear you.. will try to check more on credit unions.. thanks.

Message Edited by protege on 04-17-2009 07:48 AM

Re: how hard would be to get ~18k auto loan?

trudawg660 — Fri, 17 Apr 2009 16:52:06 GMT

I have USAA but you need a military affliction to get a account there. Pentagon Federal is also a good credit union its Department of Defense orientated but you can get a membership by this website.

https://www.penfed.org/membershipApplication/2008/nmfa.asp

Re: how hard would be to get ~18k auto loan?

Anonymous — Fri, 17 Apr 2009 18:57:38 GMT

so what would be the best action plan here? simply join and apply for auto loan?

or maybe try to build up their confidence in me first...

Re: how hard would be to get ~18k auto loan?

trudawg660 — Fri, 17 Apr 2009 19:24:18 GMT

You can join and apply right away. If you are confidante everything is ok with your credit.

Re: how hard would be to get ~18k auto loan?

Anonymous — Thu, 30 Apr 2009 01:14:34 GMT

thanks for suggestion. I'm pretty set whith what car I want to get. Now waiting for CS to go back up.

last month (march 28) I got a score watch alert for balance increase on my oldnavy card. I paid it off two weeks ago and was expecting oldnavy to do the same and report new balance on apr 28 and force to recalculate credit score.

Received nothing. I set my target score in score watch to be 1 point more than current. Still nothing..

so do you think oldnavy reports on different dates or smth? what could be the reason? thanks again

Re: how hard would be to get ~18k auto loan?

Anonymous — Thu, 30 Apr 2009 13:29:11 GMT

I hear many people say they don't like the hassle and dealing with people, don't have time, etc.

But what would you have time for if I offered to pay you $2000 cash? Most people think their job is a hassle part of the time. I would seriously reconsider doing negative equity simply for convenience. If you invest 20 hours total time in selling your car that is $100 per hour wages. Do you make that much on your job? For $100 per hour, I think it might be worth some time. Of course, I am just trying to put it into different terms and perspective for your consideration.

Good luck

Re: how hard would be to get ~18k auto loan?

Anonymous — Thu, 30 Apr 2009 15:19:15 GMT

John, I appreciate your input but calculations you have are not quite fit real World.

You dont take into consideration risks related to transaction. As well as positive outcome (car sold).

In my case I hate smart asses to make stupid comments on this and that. And will not be able to handle this pressure.

All: so back to prev Q: my CC has pay due date Apr 27. At that date my balance was $50. When do they report to CA?

Re: how hard would be to get ~18k auto loan?

Anonymous — Thu, 30 Apr 2009 17:50:31 GMT

my opinions:

1- Penfed is not a good credit union suggestion, nor is it a good one to just "join." Their lending standards in some cases are stricter then some large banks. Reconsider just joining them until you do some research.

2- john's statement is correct. but as you have said some people just do not want/do not have the ability to deal with the hassle of detailing the car, publishing the info, making appointments having people no show, be late, taking risk of robbery/theft, dealing with promised payments, sale paperwork, and then the intrinsic difficulties of selling a car with a lien on it. Then dealing with any issues 6 weeks after the sale if th engine goes, or the brakes have an issue or if they want to give the car back to you since they lost their job. (all of that is first hand accounts I have heard from people) To some it is a lot easier and worth it to just go to a dealership and turn the car in and write the loss of as a cost of doing business.

I myself do not have time with my work schedule to deal with trying to sell a car mysel if I was in that circumstance

if you ever read the book "Freakenomics" there is a chapter dealing with if your real estate agent is trying to get you the best possible deal or not. In reality, its the best deal, just not the best possible, a RA would push you to take a deal just to get it done, so they could move on to the next client- and a $10,000 diference really effects their commision not that much, whereas if they were selling their house they would hold out for that extra $10,000.

3- taking negative equity into a used car transaction makes things more difficult. You will need to have a strong downpayment to help secure financing and ensure a better rate.

4- Since you have 5 months, you need to view your car choice as an endurance runner would view an upcoming race. Ramen noodle it, (ie: lower your quality of life/expenses to give you the best amount of money to put into the transaction) and do a lot more research.

Figure if your bank will give you financing, start looking for a car, you may even be able to find deals (going into summer maybe on something small like a new Ford Focus that you could buy with a good apr/rebate set and give youself a new car warranty vehicle). Consider eligibility for a credit union.

Re: how hard would be to get ~18k auto loan?

Anonymous — Thu, 30 Apr 2009 18:11:40 GMT

Re: how hard would be to get ~18k auto loan?

medicgrrl — Thu, 30 Apr 2009 20:25:07 GMT

FYI on SW, if you set your target to what your actual score is then it will alert you if it goes down too.

Re: how hard would be to get ~18k auto loan?

Anonymous — Thu, 30 Apr 2009 20:27:37 GMT

thats good to know! Last alert was - current score is 630. I set target to 631 and keep waiting...

Re: how hard would be to get ~18k auto loan?

Anonymous — Fri, 01 May 2009 07:16:47 GMT

ohh snap! just received sms from sw.. it woke me up with good news - 20 points increase..

But now it makes me feel I would not be able to go over 650 by just paying down store card balance of 100 out of 1000 CL. But this is all I have left. 50 bucks on cap one CC with 750 CL and those 100 on store card..

looks like only time may help here.. and not fast enough I think

Message Edited by protege on 05-01-2009 12:16 AM

Re: how hard would be to get ~18k auto loan?

Anonymous — Fri, 01 May 2009 20:24:30 GMT

just FYI.. I just pulled my Eq report and it shows 656 points.. 6 more than alert form sw 5 hours ago.

And the reason score increase is lower than I expected is because Cap one still shows higher balance..

they did not report yet. So waiting and hope for the best

Message Edited by protege on 05-01-2009 03:24 PM