cancel
Showing results for 
Search instead for 
Did you mean: 

6K Negative Equity/Dealer Incentives and Rebates On New Vehicle

Highlighted
Regular Contributor

Re: 6K Negative Equity/Dealer Incentives and Rebates On New Vehicle


@bramma_99 wrote:

I wanted to provide an update to this thread, as it could be helpful to someone in the future. Caravana came yesterday. After a brief inspection (maybe 10 minutes), they agreed to their initial offer of 14.7k. I signed a purchase agreement, gave them a check for the negative equity (about 3k) and they loaded the vehicle up and drove off. Couldn't believe how easy that was!

 

Since the vehicle was financed (through Cap One), I want to wait until it shows as paid off and closed. I have another auto loan at the moment that I'm happy with. We'll use that for the time being. With my wife and I working from home, I am debating on waiting a while before getting another vehicle. But, if we want a new one, now may be the best time to do so based on incentives and the like. Either way, would it be best to wait for this loan to fully close? If I don't, I worry that it'll look as if I am seeking a third vehicle loan and my offers will reflect as such. Is there a way around that or is it best to just wait for it to update with the bureaus?


I would say wait.  It wouldn't be an issue if you were actually purchasing another vehicle from Carvana (they would manually reconfigure in your DTI based on your trade-in).  Only thing is it may take up to 3 months for Cap One to show loan as "paid in full" to the credit agencies if you can stand to wait that long.

Message 11 of 14
Highlighted
Regular Contributor

Re: 6K Negative Equity/Dealer Incentives and Rebates On New Vehicle


@Gladius wrote:

@bramma_99 wrote:

I wanted to provide an update to this thread, as it could be helpful to someone in the future. Caravana came yesterday. After a brief inspection (maybe 10 minutes), they agreed to their initial offer of 14.7k. I signed a purchase agreement, gave them a check for the negative equity (about 3k) and they loaded the vehicle up and drove off. Couldn't believe how easy that was!

 

Since the vehicle was financed (through Cap One), I want to wait until it shows as paid off and closed. I have another auto loan at the moment that I'm happy with. We'll use that for the time being. With my wife and I working from home, I am debating on waiting a while before getting another vehicle. But, if we want a new one, now may be the best time to do so based on incentives and the like. Either way, would it be best to wait for this loan to fully close? If I don't, I worry that it'll look as if I am seeking a third vehicle loan and my offers will reflect as such. Is there a way around that or is it best to just wait for it to update with the bureaus?


I would say wait.  It wouldn't be an issue if you were actually purchasing another vehicle from Carvana (they would manually reconfigure in your DTI based on your trade-in).  Only thing is it may take up to 3 months for Cap One to show loan as "paid in full" to the credit agencies if you can stand to wait that long.


@Gladius Why would it take so long for Capital One to show the load as paid in full?

Message 12 of 14
Highlighted
Community Leader
Super Contributor

Re: 6K Negative Equity/Dealer Incentives and Rebates On New Vehicle


@bramma_99 wrote:

@Gladius wrote:

@bramma_99 wrote:

I wanted to provide an update to this thread, as it could be helpful to someone in the future. Caravana came yesterday. After a brief inspection (maybe 10 minutes), they agreed to their initial offer of 14.7k. I signed a purchase agreement, gave them a check for the negative equity (about 3k) and they loaded the vehicle up and drove off. Couldn't believe how easy that was!

 

Since the vehicle was financed (through Cap One), I want to wait until it shows as paid off and closed. I have another auto loan at the moment that I'm happy with. We'll use that for the time being. With my wife and I working from home, I am debating on waiting a while before getting another vehicle. But, if we want a new one, now may be the best time to do so based on incentives and the like. Either way, would it be best to wait for this loan to fully close? If I don't, I worry that it'll look as if I am seeking a third vehicle loan and my offers will reflect as such. Is there a way around that or is it best to just wait for it to update with the bureaus?


I would say wait.  It wouldn't be an issue if you were actually purchasing another vehicle from Carvana (they would manually reconfigure in your DTI based on your trade-in).  Only thing is it may take up to 3 months for Cap One to show loan as "paid in full" to the credit agencies if you can stand to wait that long.


@Gladius Why would it take so long for Capital One to show the load as paid in full?


Reporting delays, bureau update delays. At the very least, it'll probably take 2 months to update. If it updates within 1, consider yourself lucky.


Last App: 8/24/2020
NFCU Secured Card

Currently rebuilding as of 04/11/2019.

Starting FICO 8 Scores:




Current FICO 8 scores:


Message 13 of 14
Highlighted
Contributor

Re: 6K Negative Equity/Dealer Incentives and Rebates On New Vehicle

unless you have really good credit never finance with dealership (and even if you do).....they jack up your points for what they get them for and see if youll bite.....at very least go in with approved financing on your own so they will have a rate to beat.....been down this road so many times ....

 

dealerships make alot of cash on financing side of the fence....if your making a big purchase the financing should be first step not the last step.....i will never make that mistake again...and my last purchase i did very well.....heck i never set foot into the dealer they delivered the car to me at my house....what huge turn of events from years past

Message 14 of 14
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.