topic Re: UPDATE!!!!!!!! Upside down seeking advice!!!!!!!!! in Auto Loans

UPDATE!!!!!!!! Upside down seeking advice!!!!!!!!!

Anonymous — Fri, 03 Jun 2016 12:32:04 GMT

I have been rebuilding my credit after a horrible divorce...Now that my Credit is on the up and up. I'm looking

for a new vehicle but scared I may be denied..I am upside down in my current vehicle 2010 honda crosstour its in good shape

decent miliage 67,383 however, I have been stuck with 24.14% interest w' payments of $565 and $15,517 left to pay and 44 months left

on the contract. I have had the vechicle now for 3 yrs no late payments.

I though about refinancing but the car is already 6 yrs old granted no issues but what if? also I am only the co-signer on

the vehicle looking to get from up under my EX and this is the final step..any advice pls leave it below

My fico scores EX: 700 EQ: 674 TU: 714 (I'm due for my next fico B report june 5th so I don't want to pull for my auto scores)

income w' Va disability included 61,200

only cards overstock 2,000 w' 0 balance

discover secure card 300 w' 0 balance

no baddies clear credit

Re: Upside down seeking advice!!!!!!!!!

surferchris — Sat, 28 May 2016 22:02:02 GMT

NADA has your car valued at $13,475, thus with a 120% LTV loan, you should be able to refinance at a much lower rate. With your scores most credit unions should give you tier1 or 2 rates (maybe 4 to 7%). I would try a credit union. I think it would help.

Re: Upside down seeking advice!!!!!!!!!

Anonymous — Sat, 28 May 2016 22:13:44 GMT

I'm with USAA and tried to refinance through them and they referred me to another who denied me...

Wells fargo offered to refinance for 60 months payment $396 but that 5 yrs on a 6 yr old car..that honda no longer makes

Re: Upside down seeking advice!!!!!!!!!

Appleman — Sat, 28 May 2016 22:35:16 GMT

Excuse the flurry of ideas below, just trying to think of the best way to improve your situation.

Most will say refinance and pay off the CrossTour will save you the most money.

I tend to think this would be one time rolling a little bit of negative equity into a new vehicle would be a good idea. If you could finance a new vehicle at low (2-5% interest) would be beneficial. You also would have a new car with a warranty. (There are times it can be much easier to get a new car financed than an older car refinanced).

The one thing you do not want to do is show up at a car dealer and let them see what kind of deal they can give you.

~~Do the following~~: Consider the Following:

If you live near a CarMax, take your CrossTour there and get a FREE buy offer (good for 7 days). This will tell you the lowest amount you would want to sell or trade in your vehicle for money wise.

I would look into a new car to roll over some of that negative equity. Say a new Honda or Toyota, I would think that the captive lender would give you a good rate.

Refinancing through USAA can be difficult, I am not surprised they did not approve you.

Do people think she has a chance with PenFed for a loan?

Have you tried the CapitalOne Pre-approval site (the one that does the soft pull)

They are having trouble selling the Dodge Dart / Chrysler 200 as they are discontinuing the vehicle. I know the discounts have been huge on them.

Good luck and please ask any further questions you might have. I certainly want you to find a solution that gets you out of that interest rate.

Re: Upside down seeking advice!!!!!!!!!

surferchris — Sat, 28 May 2016 22:44:33 GMT

@Appleman wrote:
Excuse the flurry of ideas below, just trying to think of the best way to improve your situation.

Most will say refinance and pay off the CrossTour will save you the most money.

I tend to think this would be one time rolling a little bit of negative equity into a new vehicle would be a good idea. If you could finance a new vehicle at low (2-5% interest) would be beneficial. You also would have a new car with a warranty. (There are times it can be much easier to get a new car financed than an older car refinanced).

The one thing you do not want to do is show up at a car dealer and let them see what kind of deal they can give you.

~~Do the following~~: Consider the Following:

If you live near a CarMax, take your CrossTour there and get a FREE buy offer (good for 7 days). This will tell you the lowest amount you would want to sell or trade in your vehicle for money wise.

I would look into a new car to roll over some of that negative equity. Say a new Honda or Toyota, I would think that the captive lender would give you a good rate.

Refinancing through USAA can be difficult, I am not surprised they did not approve you.

Do people think she has a chance with PenFed for a loan?

Have you tried the CapitalOne Pre-approval site (the one that does the soft pull)

They are having trouble selling the Dodge Dart / Chrysler 200 as they are discontinuing the vehicle. I know the discounts have been huge on them.

Good luck and please ask any further questions you might have. I certainly want you to find a solution that gets you out of that interest rate.

Good advice in regards buying a new car and in regards CarMax.

Re: Upside down seeking advice!!!!!!!!!

Anonymous — Sat, 28 May 2016 22:50:49 GMT

Thank you @Appleman

I was thinking along those lines as well...I finally got up the nerve to check the prequal but I'm going to have to call

in to verify Identity. My A$$hole of and ex. tried to use my name for some credit...

I was looking into rebates with ford didn't consider dodge and thought about staying with honda but no good rebates

Thank for the tip about carmax...I didn't consider taking it there since thats where we got it...

I don't mind rolling a lil equity in long as I get a good warranty I don't have a problem with the payment remaining high

but wouldn't mind being in the 450 range on a good quiet ride vehicle

Do you think I will be able to Qualify for new car financing with USAA? I like they buying process but don't know if I will qualify since they denied me for refi

Re: Upside down seeking advice!!!!!!!!!

Appleman — Sun, 29 May 2016 00:58:06 GMT

The problem with USAA is that they will want to do another credit pull to see if you qualify for a loan with them. You could call in and ask if an underwriter would look at your denied refinance application and see if they would approve you for a new car loan. They might finance you but it is worth a call. And make sure you let them know you do not want a new Hard Pull unless you talk to an Underwriter and they think they will approve you.

I have bought over 20 cars over the years and have used USAA financing a lot. In recent years they have not been as competitive (for me) but I currently have my daughter's car financed through them. Depending on my credit (at the time) they have been all over the place rate wise and for some deals required money down. It may be worth looking at PenFed as they only pull Equifax once and they use that pull for 90 days. It might be worth joining and see what they can do for a car loan for you. If they say no, it is only one hit on 1 bureau. (there are horror stories of people ending up with 15 inquiries when buying an auto, even if they do count as one for scoring)

The CarMax process usually takes an hour if you walk in. I did not realize that CarMax was one of the biggest car buyers in the US so their values let you see what a dealer should give you on trade. It is good to have the FREE service and they were really not high pressure the few times I have used them.

As we all know, car dealers sell cars every day and we (most of us) only buy a car every 2-4 years. It would be great to see you have financing in hand walking into a dealer.

Over the years I have had great luck on re-sale values with Honda/Acura and Subaru. Dodge/Chrysler some of the worst performing for trade in (my experiences). So if you do go the Dodge/Chrysler route be ready to drive it a long time.

I hope this all works in your favor. Please let us know how things do work out, it usually helps others on myFICO in similar situations. Very unfortunate that your husband had to hurt your credit as well.

Hoping you have a good weekend.

Re: Upside down seeking advice!!!!!!!!!

Anonymous — Sun, 29 May 2016 01:10:43 GMT

Thank u will look at Penfed and thats the goal to go approval in hand I also found jeep as a nice rebate..looking at edmunds.com I might be good I will update I plan on purchasing next week....

Re: Upside down seeking advice!!!!!!!!!

Anonymous — Sun, 29 May 2016 01:53:18 GMT

Last year I went the Dodge Journey route with some negative equity. Don't regret it one bit. If you do go Dodge/Chrysler route make sure you have some sort of extended warranty for at least the life of the loan. I think their product is real nice but would not take a chance on long-term reliability while having a loan. Probably would do that for any car as would not want to have a good sized car payment on a car not under warranty IMO.

Re: Upside down seeking advice!!!!!!!!!

Anonymous — Sun, 29 May 2016 01:58:29 GMT

PenFed and USAA offer extended warranties I'm go try both tuesday and see what happen USAA has awesome pricing on a Tiguan with almost 9k off MSRP

Re: Upside down seeking advice!!!!!!!!!

creditgambler2018 — Sun, 29 May 2016 05:47:56 GMT

2 options:

Refinance ASAP with a credit union. YOU MIGHT HAVE to give money down to credit union or pay off 2 gs to be able to refinance at a lower rate. You are really taking it from the behind big time no lube nothing.

Trade it in for a NEW CAR, BUT, BUT YOU HAVE TO MAKE SURE, I MEAN MAKE DEALERS WORK FOR A SALE FOR THE BEST OUT THE DOOR PRICE INCLUDING TRADE. I MEAN, DONT MAKE A DEAL SAME DAY, MAKE THEM CALL YOU FOR A GOOD DEAL, YOU NEED LOW LOW RATE TO BE ABLE TO AFFORD PAYMENTS BECAUSE ASSUME SOME OF THE CURRENT LOAN WILL ROLL OVER.

IF ALL FAILS SUK IT UP AND CONTINUE TO MAKE PAYMENTS TO LOWER THAT BALANCE FAST.

Re: Upside down seeking advice!!!!!!!!!

Anonymous — Sun, 29 May 2016 13:10:35 GMT

If you do some number crunching, things might get much more clear.

So a 15,517 for 44 mo with a 0 APR = 352.6. What you pay is 565. That means you are paying almost 212.4 each month just in interest. This means that in over 44 months you will pay almost $9345 just in interest. That is outageous to say the least considering that you have very decent scores.

Now I realize that you will not get a 0% APR so lets assume a modest/conservative 6% considering your credit history your monthly payment is almost 394. so over a 44 mo period you will pay almost $1848 over the course of 44mo. At that point in time your car will be almost 9 years old and would have required a decent amount of maintainence work which you are not factoring in at the moment.

Considering all of the above and the current value being almost 13k of your car, I would go to a Honda dealer (because they most likley will give you a higher trade value) and get a newer/new car. Realize that the 2K negative equity will be equal to the 6% interest charge that you will pay over the next 3 and half year. There are some great deals out there with the memorial weekend and all of 0.9% with new cars and most credit unions will give you a good rate as well for a CPO car as well. There are great deals with a lot of other manufacturers like 0% with Toyota so explore your options.

Hope this helps

Re: Upside down seeking advice!!!!!!!!!

Anonymous — Sun, 29 May 2016 13:46:02 GMT

I so appreciate the numbers crunch I'm not tying to make a another mistake. how do apprasials or trade ins work online with credit unions or Can you request to be pre approved for $30,000 and go from there.

I also thought about paying the negative equity but thats a lot to eat and it would come from my emergancy fund and I just built that up and do not want to touch it especailly for a car I do plan or keeping this vehicle for the long haul so If i can go no down, low payment, and a good w warranty I'm good.

I just wish I knew what usaa considered to be good scores to quailfy for 3.99% 72 months thats advertised on the website but, then when I look at dealer financing I may be able to quailfy for lower than that but I don't want all the fees and headache that comes with the dealership.

Re: Upside down seeking advice!!!!!!!!!

Anonymous — Sun, 29 May 2016 13:52:58 GMT

Would never advise anyone to take money out of an emergency fund and this is def not worth it.

I would seriously consider just rolling in the negative equity into a new car. The only points and "fee" that you want on your quote from a dealer are the following

MSRP including destination

Selling price

Dealer fee = usually ranges from 299-499 (although these are negotiable but most dealers will NOT budge)

Bank fee = usually in the range of 500 (this goes to a bank e.g chase with Mazda, or Honda financial services with Honda)

Tax = usual state tax where car is registered

Title and registration fee = DMV fee = usually at or near 200 depends with state (check your local DMV, cali has a tire fee and a green fee I think .. small but there and required)

anything else ask the dealer to explain and post it here most people will help you, if its bogus be prepared to walk away!

Re: Upside down seeking advice!!!!!!!!!

Anonymous — Sun, 29 May 2016 13:58:49 GMT

Also check the loan approved thread and pick out the people with the relevant CU/bank/institution you are looking for and ask them. Fill help you immensely.

Re: Upside down seeking advice!!!!!!!!!

RonM21 — Sun, 29 May 2016 13:59:31 GMT

I'm thinking the credit union route may be a better option for you also.

Re: Upside down seeking advice!!!!!!!!!

Anonymous — Sun, 29 May 2016 14:04:28 GMT

Thank you, Thank you, Thank you

you guys are awesome..I'm headed back to the approval side now thats where I get the confidence my scores will work in my favor some way I will keep updated looking to purchase next week..

does anyone have input on true car or edmunds.com?

Re: Upside down seeking advice!!!!!!!!!

Anonymous — Sun, 29 May 2016 14:11:30 GMT

The prices that each one of them mentions especially for new cars are higher than what you pay for. I would say that read through the specific forum of the car that you want to buy. I went through driveraccord.net when I was buying my Accord Sport

MSRP and destination was 25900, true car exceptional price is 22,921 (This i think does not include state tax, dealer fee and DMV fee), I got quotes from 23000 to as low as 21,200 + TTL which I ended up using(note we had purchased a car from them previously) and got the car. Mail multiple dealers, even if its a 50 mile drive.. get multiple quotes, pit one dealer against the other to get a lower price even than the one they previously offered!

Re: Upside down seeking advice!!!!!!!!!

surferchris — Sun, 29 May 2016 15:49:22 GMT

@Anonymous wrote:
OP

If you do some number crunching, things might get much more clear.

So a 15,517 for 44 mo with a 0 APR = 352.6. What you pay is 565. That means you are paying almost 212.4 each month just in interest. This means that in over 44 months you will pay almost $9345 just in interest. That is outageous to say the least considering that you have very decent scores.

Now I realize that you will not get a 0% APR so lets assume a modest/conservative 6% considering your credit history your monthly payment is almost 394. so over a 44 mo period you will pay almost $1848 over the course of 44mo. At that point in time your car will be almost 9 years old and would have required a decent amount of maintainence work which you are not factoring in at the moment.

Considering all of the above and the current value being almost 13k of your car, I would go to a Honda dealer (because they most likley will give you a higher trade value) and get a newer/new car. Realize that the 2K negative equity will be equal to the 6% interest charge that you will pay over the next 3 and half year. There are some great deals out there with the memorial weekend and all of 0.9% with new cars and most credit unions will give you a good rate as well for a CPO car as well. There are great deals with a lot of other manufacturers like 0% with Toyota so explore your options.

Hope this helps

Good advice.

Re: Upside down seeking advice!!!!!!!!!

Anonymous — Sun, 29 May 2016 15:53:10 GMT

what is a CPO car?