Auto Loan Approvals!

[MarineVietVet]

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@Travis-84 wrote:

APPROVING BANK:  Midfirst Credit Union
BUREAU PULLED: EX
CREDIT SCORE: TU 697, EQ: 702  EX ?
CUSTOMER STATE OF RESIDENCE: OH
NEW/USED: USED
YEAR OF VEHICLE: 2001

MAKE: Hyundai

MODEL: Elantra
RETAIL/LEASE: retail
AMOUNT OF LOAN: 3771
TERM CONTRACTED: 36 months
APR/LEASE RATE: 3.99
INCOME: $20,000
MISCELLANEOUS COMMENTARY:  This is my first ever auto loan@.  They gave me the option of 90.00 a month for 48 months @ 5.6%, or 115 a month @Anonymous months at 3.99.  I plan to pay 250 a month once my credit cards are payed off around Jan, so I took the lower interst rate. 

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Congratulations on your first car loan. I remember my first loan. It was a new 1971 Dodge Charger (yes I'm dating myself but I don't care  ). If I recall the price was all of $5,000. How times and prices have changed.

Enjoy your car.

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800, 10/10-813
TU - 8/10-772
You can do the same thing with hard work

[Anonymous]

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@Travis-84 wrote:

APPROVING BANK:  Midfirst Credit Union
BUREAU PULLED: EX
CREDIT SCORE: TU 697, EQ: 702  EX ?
CUSTOMER STATE OF RESIDENCE: OH
NEW/USED: USED
YEAR OF VEHICLE: 2001

MAKE: Hyundai

MODEL: Elantra
RETAIL/LEASE: retail
AMOUNT OF LOAN: 3771
TERM CONTRACTED: 36 months
APR/LEASE RATE: 3.99
INCOME: $20,000
@MISCELLANEOUS COMMENTARY:  This is my first ever auto loan.  They gave me the option of 90.00 a month for 48 months @ 5.6%, or 115 a month @Anonymous months at 3.99.  I plan to pay 250 a month once my credit cards are payed off around Jan, so I took the lower interst rate. 

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Bravo on taking the lower rate and a shorter term...

[Travis-84]

15.00 a month extra to pay if off a year earlier.  It was an easy decesion.  

[Anonymous]

APPROVING BANK: BANK OF AMERICA
BUREAU PULLED: NOT SURE
CREDIT SCORE: EQ 696 TU 728 EX 710
CUSTOMER STATE OF RESIDENCE: GA
NEW/USED: USED
YEAR OF VEHICLE: 2008

MAKE: CHEVY

MODEL: AVALANCHE
MILEAGE: 52K
RETAIL/LEASE: RETAIL
AMOUNT OF LOAN: 22.8K
TERM CONTRACTED: 60 MO
APR/LEASE RATE: 3.25
MONTHLY PAYMENT: $411
MISCELLANEOUS COMMENTARY: REFI AUTO LOAN, PREVIOUS RATE WAS 9.1% AT $615 MO.

[Anonymous]

APPROVING BANK: VW Credit
BUREAU PULLED: Transunion
CREDIT SCORE: 669
CUSTOMER STATE OF RESIDENCE: CA
NEW/USED: NEW
YEAR OF VEHICLE: 2011

MAKE: VOLKSWAGEN

MODEL: JETTA SE
MILEAGE: 41
RETAIL/LEASE: RETAIL
AMOUNT OF LOAN: 21,901.64

TERM CONTRACTED: 60 months
APR/LEASE RATE: 3.70
MONTHLY PAYMENT: $449.87
MISCELLANEOUS COMMENTARY: Monthly payment includes GAP coverage and extended warranty. 2K down.

[Anonymous]

By the way, what exactly is "gap insurance"?

[Anonymous]

Gap insurance will protect you on the difference between the vehicle's value and your loan amount.  Say you buy a new car for $30K, drive it for 6 months and someone t-bones you (fault really doesn't matter).   Insurance company totals out your car for book value of $19K, but you still owe $28K on the loan.  If you don't have GAP insurance, you are responsible for the other $9K.   Everyone has their own opinion on whether to purchase it or not, but you can usually get it at a reasonable rate from a CU.  Of course, don't buy it if you are placing a good down payment on a vehicle; GAP insurance is worthless if your vehicle is worth more than your amount owed on the loan. 

[Anonymous]

On a sidenote,

When I purchased my car almost 1 year ago; I elected to purchase GAP insurance from my credit union even though I put a $6K down payment, only because the rep. said that their GAP insurance also would cover my car payments for up to 1 year if I were to lose my job.  You just never can be too sure nowadays.(Well, I cant.)

[Anonymous]

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@Anonymous wrote:

Gap insurance will protect you on the difference between the vehicle's value and your loan amount.  Say you buy a new car for $30K, drive it for 6 months and someone t-bones you (fault really doesn't matter).   Insurance company totals out your car for book value of $19K, but you still owe $28K on the loan.  If you don't have GAP insurance, you are responsible for the other $9K.   Everyone has their own opinion on whether to purchase it or not, but you can usually get it at a reasonable rate from a CU.  Of course, don't buy it if you are placing a good down payment on a vehicle; GAP insurance is worthless if your vehicle is worth more than your amount owed on the loan. 

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I see.  Thank you.

If you put down a substantial downpayment and ultimately get whacked, you lose the value of your equity.  You might think it is better not to put any money down in order to hedge your bets.  Or wrong?

[Travis-84]

[quote]If you put down a substantial downpayment and ultimately get whacked, you lose the value of your equity.  You might think it is better not to put any money down in order to hedge your bets.  Or wrong?[/quote]

I guess it depends on how accident prone you are and what your interest rate is.

If I could get 0% APR, I would put as little down as possible, make minimum payments, then put extra money in saving account.  This would give me more flexibility if I really needed the money for something else.

If my APR was 20%,(for the sake of discussion, lets assume I HAD to buy that car) I would put down as much as possible, and pay if off as fast as possible. 

I actually bought a used car a few years ago, and it was totaled about 30 days after I bought it.   They offered me 750 less than I paid for it, even though I showed them that I bought it 30 days ago.  They wouldn't budge, so I called them up to see if I was eligible for a rental car, and I was eligible for 40.00 a day for 30 days.  I told them I would rent the car for 30 days so I could consider their offer.  Since a rental car would have cost them 1200, they overnighted me a check for the amount I was asking.