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Alliant auto loan question

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Frequent Contributor

Alliant auto loan question

I have 2 cars with 2 auto loans.

 

The first is for my Audi, with a pretty good 4.x% APR, through Alliant. I got this loan 4 years ago when my scores were well into the 700's.

 

The second is for my Kia, with a terrible 10.x% APR through Kia Finance. I got this loan last year when my scores were in the high 500's to low 600's.

 

My scores are improving now, my FICO Auto 8 median score is 660. I think it's time to refinance the Kia.

 

My question is, would Alliant give me any preferential treatment (ie, matching my other Alliant loan's APR) due to my existing auto loan from them (that has has perfect payment history for all of its 4 years so far), or are they more likely going to just pick whatever rate any other consumer would get with my current scores (which is probably in the 7-8% range)?

 

Hoping someone may have some insight. Thanks!

    Total CL: $20,600
Fico 8 Scores:
12/2018:
03/2019:
06/2019:
08/2019:
Goals:   550 by 12/2018 600 by 3/2019   650 by 6/2019   700 by 9/2019   750 by 12/2019
8 derog. (all settled 1/2019)     |     Inquiries: 10, 9, 6     |     AoOA: 10.0yr     |     AAoA: 5.2yr     |     AoYA: 0.3yr
Message 1 of 5
4 REPLIES 4
Community Leader
Valued Contributor

Re: Alliant auto loan question

Relationship usually helps, but it’s certainly no guarantee that they’ll match or beat your Audi rate. The only way to know is to call them up and get a quote. Good luck! (I love Kia!)
Discover It: 18.7k
Amex BCE: 18k
Citi DC: 4.7k
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Once you go Berner, you never go back.
Message 2 of 5
Valued Contributor

Re: Alliant auto loan question


@coreysw12 wrote:

I have 2 cars with 2 auto loans.

 

The first is for my Audi, with a pretty good 4.x% APR, through Alliant. I got this loan 4 years ago when my scores were well into the 700's.

 

The second is for my Kia, with a terrible 10.x% APR through Kia Finance. I got this loan last year when my scores were in the high 500's to low 600's.

 

My scores are improving now, my FICO Auto 8 median score is 660. I think it's time to refinance the Kia.

 

My question is, would Alliant give me any preferential treatment (ie, matching my other Alliant loan's APR) due to my existing auto loan from them (that has has perfect payment history for all of its 4 years so far), or are they more likely going to just pick whatever rate any other consumer would get with my current scores (which is probably in the 7-8% range)?

 

Hoping someone may have some insight. Thanks!


 

 

 

 

 

Loan to value is an important factor on any auto refinance.  Assuming you have equity I would think a refi should be easy enough and 10% should be easy to beat.   I doubt your relationship will get you a better rate, they are calculated based on risk so your scores are what will get you x rate.  Having said that if you were on the border of being an approval because of score or loan to value you would likely get some manual review help based on your relationship.  Word of caution, know your loan to value on the Kia before you apply, unless you put money down you likely have negative equity that might hold you back from an approval.  Most seem to be ok with 120% LTV.

Message 3 of 5
Frequent Contributor

Re: Alliant auto loan question

Good to know about the LTV issue. I just checked, and according to KBB, its trade-in value is 21k, its private party value is 24k. Not sure which one a bank would use - but with owing 30k currently, that puts it at 142% or 125%, depending which value they'd use. Sounds like maybe I'll need to fork over $1000 or so to appease them.

 

I'll ask them next week what they think - I'd like to avoid a HP at this point during my refi shopping.

    Total CL: $20,600
Fico 8 Scores:
12/2018:
03/2019:
06/2019:
08/2019:
Goals:   550 by 12/2018 600 by 3/2019   650 by 6/2019   700 by 9/2019   750 by 12/2019
8 derog. (all settled 1/2019)     |     Inquiries: 10, 9, 6     |     AoOA: 10.0yr     |     AAoA: 5.2yr     |     AoYA: 0.3yr
Message 4 of 5
Valued Contributor

Re: Alliant auto loan question


@coreysw12 wrote:

Good to know about the LTV issue. I just checked, and according to KBB, its trade-in value is 21k, its private party value is 24k. Not sure which one a bank would use - but with owing 30k currently, that puts it at 142% or 125%, depending which value they'd use. Sounds like maybe I'll need to fork over $1000 or so to appease them.

 

I'll ask them next week what they think - I'd like to avoid a HP at this point during my refi shopping.


The good thing is its still a new car so your chances on LTV if its borderline is a little better.  I don't think they will use trade in, pretty sure it will be retail value.

Message 5 of 5
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