topic Re: Auto Refinance merry go round in Auto Loans

Auto Refinance merry go round

Mdowning30 — Wed, 15 Jun 2022 11:28:48 GMT

Currently trying to refinance my high interest car loan, so I've Penfed and Bank Of America have been a no go. At the moment waiting to get an answer back from Ally Clearlane. I pre qualified with them for 7.99% APR.

Re: Auto Refinance merry go round

pizzadude — Wed, 15 Jun 2022 12:49:09 GMT

What is your current loan situation - APR, balance, remaining payments ?

Re: Auto Refinance merry go round

MrFiah — Wed, 15 Jun 2022 13:10:40 GMT

Good luck, since clearlane is a marketplace and not a lender it can take a few days to get things set up and another few days to get funding....most reviews are poor....one customer reports that they paid clearlane but clearlane (or the lender) didnt make the payments for two months so they got hit with finance charges....

Re: Auto Refinance merry go round

Mdowning30 — Wed, 15 Jun 2022 14:09:51 GMT

My current loan was opened January 2021 before i really started building my credit up so got hit with the subprime rate of 21% 72 month loan $504 a month with Capital One. Looks like no soup for me yet. Just trying to get refinanced with a single digit APR and lower my car payment. No offers available from Penfed or Clearlane now, denied by Bank Of America.

Re: Auto Refinance merry go round

sccredit — Wed, 15 Jun 2022 14:18:49 GMT

IMO I would try DCU. Your scores may not qualify for their lowest rates yet but you should be able to qualify for decent rates based on the scores in your signature

Re: Auto Refinance merry go round

Mdowning30 — Wed, 15 Jun 2022 14:35:57 GMT

Unfortunately i'm not eligible to join DCU.

Re: Auto Refinance merry go round

MrFiah — Wed, 15 Jun 2022 15:06:28 GMT

@Mdowning30 wrote:
My current loan was opened January 2021 before i really started building my credit up so got hit with the subprime rate of 21% 72 month loan $504 a month with Capital One. Looks like no soup for me yet. Just trying to get refinanced with a single digit APR and lower my car payment. No offers available from Penfed or Clearlane now, denied by Bank Of America.

Wow, that's a tough spot to be in. Over the course of the loan, you'll be paying almost as much in interest as the original principle. Are you upside down on the car yet? If not, might be better off just getting rid of it. I know you commented on a post of mine about how a $20,000 down payment would be better off in the stock market but this is a prime example of why I would use a big down payment. To get more favorable loan terms, avoid the high interest, being underwater and just knowing if something comes up I'm okay. Best of luck.

Re: Auto Refinance merry go round

Mdowning30 — Wed, 15 Jun 2022 15:23:30 GMT

With the used car market up right now, i think my car would only be under water maybe $500-$1000. I have a 2015 Camry XSE V6 so it might still have some equity.

Re: Auto Refinance merry go round

Credit4Growth — Wed, 15 Jun 2022 17:02:16 GMT

@MrFiah wrote:
@Mdowning30 wrote:
My current loan was opened January 2021 before i really started building my credit up so got hit with the subprime rate of 21% 72 month loan $504 a month with Capital One. Looks like no soup for me yet. Just trying to get refinanced with a single digit APR and lower my car payment. No offers available from Penfed or Clearlane now, denied by Bank Of America.
Wow, that's a tough spot to be in. Over the course of the loan, you'll be paying almost as much in interest as the original principle. Are you upside down on the car yet? If not, might be better off just getting rid of it. I know you commented on a post of mine about how a $20,000 down payment would be better off in the stock market but this is a prime example of why I would use a big down payment. To get more favorable loan terms, avoid the high interest, being underwater and just knowing if something comes up I'm okay. Best of luck.

@MrFiah asked a very good question.

I am curious as to how you are not eligible to join DCU.

In another of your post you have, "I have a 2015 Toyota Camry XSE V6 with fairly low miles that I'm still paying off I'm happy with it ..."

Is this 2015 Toyota the very same vehicle we are discussing?

Have you researched and viewed rates of CUs local to you? If not, I think this would be a very good idea.

I believe more than half, but not all FI, especially banks look to charge a higher interest rate for older vehicles. My preference is to obtain financing from a credit union and not a bank when searching for rates concerning automobiles.

Now, back to discussing DCU eligibility. I thought DCU was still open to everyone through association with other organizations. I would revisit their list of participating organizations DCU has on its website.

Reach Out for Schools – A non-profit membership organization that raises money to fund classrooms and programs that benefit students. Most of the funds that we raise are used to adopt classrooms through Adopt-a-Classroom and to fund projects through Donors Choose. These programs allow teachers to purchase classroom resources with donated funds. You may join this organization when you open your DCU membership.
Memberships start at $10
Reach Out for Schools, PO Box 290, Tyngsborough, MA 01879

Edit: sorry for the delayed response I thought I sent this post before turning my attention back to other things. Today is just dragging our for me... ugh!

Re: Auto Refinance merry go round

Mdowning30 — Wed, 15 Jun 2022 17:11:13 GMT

Unfortunately out of DCU's long list of companies and localities, Im not eligible living in Miami, FL. Yes it's pertaining to the 2015 Camry. ATM in the process of finalizing with an offer from Tower Federal Credit Union.

Re: Auto Refinance merry go round

Credit4Growth — Wed, 15 Jun 2022 17:15:30 GMT

@Mdowning30 wrote:
Unfortunately out of DCU's long list of companies and localities, Im not eligible living in Miami, FL. Yes it's pertaining to the 2015 Camry. ATM in the process of finalizing with an offer from Tower Federal Credit Union.

👍 and good luck to you!

For me 😊 I am just happy to here you working with a CU. Hope they treat you well!

Re: Auto Refinance merry go round

Mdowning30 — Thu, 16 Jun 2022 12:05:37 GMT

Looks like they're already in the process, Experian already notifies me that my Capital One account was disconnected, is that a good thing ? I hope it's a smooth transition and reports properly.

Re: Auto Refinance merry go round

Mdowning30 — Fri, 17 Jun 2022 00:17:42 GMT

My new loan would be 5.49% interest rate, and $357 a month. From 21% and $504 I will be saving a lot.

Re: Auto Refinance merry go round

Credit4Growth — Fri, 17 Jun 2022 01:18:58 GMT

I see that you were recently approved.
Congratulations bud!
You did very well! 💫

Re: Auto Refinance merry go round

Mdowning30 — Fri, 17 Jun 2022 14:17:12 GMT

Monthly payment is actually $340 but plus $17 for GAP protection

Re: Auto Refinance merry go round

Credit4Growth — Sat, 18 Jun 2022 14:40:07 GMT

From $504 ton$350-ish, mission accomplished!

Happy to see your efforts paid off. 21% cut ✂️ down to 5.49%
Super Congrats!

Re: Auto Refinance merry go round

Mdowning30 — Mon, 20 Jun 2022 14:34:35 GMT

Ahh man just realizing i could have joined with that Reach Out For Schools program for DCU, but not certain if they would have approved a loan for me. With Tower Federal Credit Union, in my loan agreement i did sign up for an organization that was a $35 donation and a savings account minimum of $5.

Re: Auto Refinance merry go round

LakeLife — Wed, 22 Jun 2022 17:11:53 GMT

@Mdowning30 wrote:
Monthly payment is actually $340 but plus $17 for GAP protection

If you had GAP on the original loan, you're probably entitled to a partial refund. Make sure to pursue that.

Re: Auto Refinance merry go round

Mdowning30 — Fri, 24 Jun 2022 17:20:24 GMT

Recieved the email that Tower Federal Credit Union will send the funds over to Capital One in 7-14 business days and Caribou will handle changing the lienholder info. So my APR is actually 6.45% and the interest is 5.49%. I think thats pretty good for my profile. They have a nice looking mobile app and as soon as i can i will see if its possible to change paying my payment monthly to bi-weekly.