Applying for a second auto loan

[Anonymous]

This may seem dumb, but what is DH?

I am going to see if my credit union will approve first, I hope they do because I like their rates. I'm not sure how much the dealership would bleed me dry on interest.

**Also I decided that since I already have that Camaro that I am still paying on for roughly $20,000 it may not be a good idea to buy for around the same price I paid for that car after tag/title/tax etc.   Do you think my chances would be better if I went for a truck priced at $15,990?

Let me know, thank you everyone!

-Blair

[Remember0]

Sorry, DH is internet slang for husband, "dear husband" specifically.

Good idea on the CU. There's a small chance they just might not want to risk 2, and another cu would approve, but I doubt it. If they deny, ask them why and if they'd approve if they weren't the holder of your current auto loan.

Honestly, in general, yes lower loan = more chances of approval. But I say if it's a local CU ask them maybe after they approve if they'd go to 20k? I don't think 5k will matter all THAT much imo. I don't really see a approval for 15k, but a rejection for 20k tbh. Same decision for both.

[Anonymous]

Okay, so it does look like we are going through with trying to buy the truck tomorrow. In what order do I try and convince them to sell me the truck? What would I say after my husband tries to talk them down (he's better at that than I am). Do we need to sound like we really need the truck? Or do we lay low. Should I wait to call the credit union once I get there for the sense of urgency? Or have the pre-approval (if i COULD get pre-approved) before I go in there.  Hopefully I can just have my husband get approved on his own first.. but that probably won't happen. If it were to happen for him I would be happy because that saves me a trip to the DMV tag office... ew.

[Remember0]

Always negotiate price first. If you make it look or sound like you need the car in any manner, you're going to get hosed...that I can promise. Heck, don't even say there was an accident. IMO you think it'd be cool to get another vehicle, but don't need it. If you don't get the right price, no need for the truck. Usually you get a better price if you physically walk away after they say no more and leave a number if they can come down x more (usually I do like $250-500, though you may not want to push it that far).

After you get a price, talk financing in my opinion. If you get a pre-approval from a CU it's good because they can't jack your financing up above that and need to compete. That's my preferred way of dealing with it unless I'm helping someone who's credit is like super-prime (for auto 720+), the DTI is well within reason, everything seems like a no-brainer, and they're buying a new car that I know has incentive rates. ONLY in that particular case when all that fits do I say meh, don't bother with the cu, just demand the best rate (like 0 or max 1.9% on promo models).

In your case, I think getting a CU/local bank approval (you only first on app if you want, if they deny see what they do with DH on loan as secondary maybe). Then with a baseline, don't tell the dealership the exact rate, but ask what's the best they can offer for you or DH (not sure who you ideally want on the loan). ou can try all scenarios. Tell them DH only, see what they offer. Tell them you only if that rate isn't satisfactory, see what they can do and don't be afraid to negotiate on even the APR (they can with most lenders mark it up by 2-3%, though I've sometimes seen way more, and keep most of the extra you're paying in interest...obviously there's more negotiating power if you have a pre-approval here).

The lender might care about why you are getting two vehicles in your name if not in DH's name. At that point, I think it's fair to divulge that hey we currently only have one car and he needs one of his own. But not before the price is set imo.

Let me know if something here is confusing...typed this pretty fast so I don't know

[Anonymous]

So I have an update on the whole purchase. The best rate we could get was $391 a month on a nice 2007 Chevy Silverado.

However, purchasing the truck was my last ditch effort on saving our marriage so that he could committ to working more and quitting his costly drinking habit. I am looking at a divorce now. I'm not necessarily "stuck" with the truck in my name because I have some interested buyers. HOWEVER, he wants to keep the truck, I told him he either needs to work it out with a lender to purchase the truck in his name or work it out with his father to buy the truck from me and issue him the monthly payments. (Aside from my interested buyer). I think if its within 30 days of purchase the dealership can switch everything over to him. (He got approved on his own for a crappier rate). If it is taken off my hands within 30 days, does it affect my credit at all? If at all, how much?

[Remember0]

I'm sorry to hear that. It might remain on your credit. As long as it reports paid in full as agreed and no lates or repos, the fact that you only had the loan for 1 month won't hurt even if it reports to your credit. Just make sure to get a letter from the lender that the loan was paid in full (in case anyonee ever asks questions during mortgage underwriting as to why you had a car loan for only 1 month).

[Anonymous]

Just in case anyone followed this story, I DID get approval for the second vehicle. $390 a month. On a $20000 loan (including tag title tax) Too bad I bit the big one when I had to sell it back to the dealership for a buyout. Thank goodness I'm getting a divorce at 26, he's nothing but trouble financially, despite all the opportunities I presented for improvement.