topic Carvana approved me ! crazy interest rate- should i take it? in Auto Loans

Carvana approved me ! crazy interest rate- should i take it?

Anonymous — Tue, 04 Feb 2020 22:17:47 GMT

Hey guys so i was pre-qualified for a carvana loan 19% interest but only @700 down. My score are low though so it comes with the territory. I do have a NFCU membership and could refi with them once scores get a little higher. Only looking to finance around 12-13k. What do you guys think? any input is appreciated.

Re: Carvana approved me ! crazy interest rate- should i take it?

AllZero — Tue, 04 Feb 2020 22:36:56 GMT

Not knowing the full details of your situation, 19% sounds kinda high. Have you pursued other options, Navy?

Re: Carvana approved me ! crazy interest rate- should i take it?

TattnallTrio — Wed, 05 Feb 2020 11:48:52 GMT

I purchased a car from Carvana (a 2016 Kia Optima) and returned it because they delivered it to me with a huge coffee said on the passenger seat and touch up paint covering a scrape. The touch up paint was poorly applied. The car was at full NADA retail. This was a low mile lease turn in.
I'd be cautious of them from my experience and the majority of their inventory is prior rental cars. I wouldn't buy a used rental personally.

Re: Carvana approved me ! crazy interest rate- should i take it?

OmarR — Sat, 08 Feb 2020 21:59:32 GMT

With only $700 down, someone else may not approve you for re-finance in the near future due to LTV ratio.

Re: Carvana approved me ! crazy interest rate- should i take it?

Anonymous — Sun, 09 Feb 2020 13:37:37 GMT

I bought from Carvana at similar interests rate and price... What ever you do, don't buy the extended warranty as it puts LTV way out of whack and it's worthless when compared to factory or CarMax aftermarket warranty. I was able to cancel and it get prorated refund along with doubling my payments over the course of 8 months allowed me to refinance with Cap One for 6%. Carvana through Bridgecrest and a Discover Secured card really help raise my scores in that time period.

If you go down this road, don't buy the warranty and get GAP (either through them or insurance). Get something you can easily pay off in a year or two just in case you can't get refinance and hammer the payments. FWIW, I bought a 2013 Mini Cooper S Clubman fully loaded with very low miles and a odd color that no one wanted so they kept dropping the price.

Re: Carvana approved me ! crazy interest rate- should i take it?

pinkandgrey — Sun, 09 Feb 2020 18:49:42 GMT

I don't know what your situation is, but my first instinct would be NOT to take a 19% loan. That's really high. I would try every available option before taking on that much interest.

Good luck with whatever you do!

Re: Carvana approved me ! crazy interest rate- should i take it?

Anonymous — Mon, 10 Feb 2020 11:59:38 GMT

@Anonymous wrote:
I bought from Carvana at similar interests rate and price... What ever you do, don't buy the extended warranty as it puts LTV way out of whack and it's worthless when compared to factory or CarMax aftermarket warranty. I was able to cancel and it get prorated refund along with doubling my payments over the course of 8 months allowed me to refinance with Cap One for 6%. Carvana through Bridgecrest and a Discover Secured card really help raise my scores in that time period.

If you go down this road, don't buy the warranty and get GAP (either through them or insurance). Get something you can easily pay off in a year or two just in case you can't get refinance and hammer the payments. FWIW, I bought a 2013 Mini Cooper S Clubman fully loaded with very low miles and a odd color that no one wanted so they kept dropping the price.

Extended warranties are generally garbage, but I wouldn't be driving a 7 year old MINI without some kind of coverage . . . . .

Re: Carvana approved me ! crazy interest rate- should i take it?

Anonymous — Mon, 10 Feb 2020 12:00:25 GMT

@Anonymous wrote:
Hey guys so i was pre-qualified for a carvana loan 19% interest but only @700 down. My score are low though so it comes with the territory. I do have a NFCU membership and could refi with them once scores get a little higher. Only looking to finance around 12-13k. What do you guys think? any input is appreciated.

Have you simply tried NFCU for the initial loan?

Re: Carvana approved me ! crazy interest rate- should i take it?

Medic981 — Tue, 11 Feb 2020 23:24:51 GMT

I know you are in a tough situation but 19% is an awfully high-interest rate. I would look to find another financing if at all possible. As others have mentioned, I would try Navy first before accepting this offer.

Re: Carvana approved me ! crazy interest rate- should i take it?

sccredit — Wed, 12 Feb 2020 00:13:55 GMT

@Anonymous wrote:

If you go down this road, don't buy the warranty and get GAP (either through them or insurance). Get something you can easily pay off in a year or two just in case you can't get refinance and hammer the payments. FWIW, I bought a 2013 Mini Cooper S Clubman fully loaded with very low miles and a odd color that no one wanted so they kept dropping the price.

NOOOOOO!!!!!! OP - DO NOT follow this advice. Buying a car at retail with $700 down and NOT buying GAP (from either them or insurance) is a recipe for financial disaster. GAP is usually a much better deal if purchased through your own insurance company (if offered) but either way OP needs to have GAP.

Re: Carvana approved me ! crazy interest rate- should i take it?

Dj4Money — Wed, 12 Feb 2020 01:11:44 GMT

Why not? Look, rentals are properly maintained which is more than I can say for the general public who will delay proper maintenance out of ignorance or making other issues a priority over having a car that will get to work without leaving you on the side of the road on your way to work...

The problems with the car you should have asked Carvana to discount the car accordingly and get those things repaired yourself. Painless dent removal would have done the touch up right and any stain can be removed from fabric seats.

For as much as you pay at Carvana you could get a new Kia with the heavy rebates they offer.

Re: Carvana approved me ! crazy interest rate- should i take it?

NimbusIII — Wed, 12 Feb 2020 02:19:39 GMT

@sccredit wrote:
@Anonymous wrote:

If you go down this road, don't buy the warranty and get GAP (either through them or insurance). Get something you can easily pay off in a year or two just in case you can't get refinance and hammer the payments.FWIWW, I bought a 2013 Mini Cooper SClubmann fully loaded with very low miles and a odd color that no one wanted so they kept dropping the price.
NOOOOOOO!!!!!! OP - DO NOT follow this advice. Buying a car at retail with $700 down and NOT buying GAP (from either them or insurance) is a recipe for financial disaster. GAP is usually a much better deal if purchased through your own insurance company (if offered) but either way OP needs to have GAP.

I think you misread the statement, He was Advocating for GAP

Re: Carvana approved me ! crazy interest rate- should i take it?

sccredit — Wed, 12 Feb 2020 22:45:25 GMT

@NimbusIII wrote:
@sccredit wrote:
@Anonymous wrote:

If you go down this road, don't buy the warranty and get GAP (either through them or insurance). Get something you can easily pay off in a year or two just in case you can't get refinance and hammer the payments.FWIWW, I bought a 2013 Mini Cooper SClubmann fully loaded with very low miles and a odd color that no one wanted so they kept dropping the price.
NOOOOOOO!!!!!! OP - DO NOT follow this advice. Buying a car at retail with $700 down and NOT buying GAP (from either them or insurance) is a recipe for financial disaster. GAP is usually a much better deal if purchased through your own insurance company (if offered) but either way OP needs to have GAP.
I think you misread the statement, He was Advocating for GAP

I think you are right. In that case - sorry @SH556

Re: Carvana approved me ! crazy interest rate- should i take it?

sznnmnt — Sat, 15 Feb 2020 18:20:01 GMT

Yes, shop around, you should be able to get something closer to 10%. Go to ANY credit union, they most likely with give you a better rate + they won't play the spread of credit scores against you. I suggest DCU, its where I'm going as my hopes are that it's the place to get the best interest rate. They give you a 0.25% apr decrease if the avg mpg<34 and they give you a relationship discount too of another 0.25%. Don't worry if you don't live there, you can get a membership with organizations they have a relationship with to join. I'm a Tower Hill Botanical Garden member and live in Cali. You sign up by becoming a member of the associated orgs and also with getting a checking and savings account where the min is $5 deposit for the savings account. Lots of stuff to do, but the savings are going to be worth it! Do it now!