Auto Loan Debate

[Anonymous]

I'm currently debating trading in my car (which is above water) and trying to see if I can obtain financing with a better rate. Originally in October of last year I had to buy a car ASAP. I also had to rebuild my credit - I was at 601(EQ) and 597(TU). My EX FAKO was around 560 at the time. I put $3000 down and was able to obtain a $10K loan from UACC. They gave me a 24% APR and I knew I was being robbed with their APR but I did what I had to do.

Fast forward to today. As of last week I scored at 659(EQ) and 654(TU). I've been paying close to double the monthly payment since I first received the loan and have on occasion even almost tripled it. Noticed UACC had been applying a lot of that money to interest in the first two months, since then I've requested that they only apply payments to the principal.

Current Loan:

Terms 36 Months

Original Balance: $10200

Current Balance: ~$5800

Car's Retail Value: $11,120

Trade-In Value: ("Good" condition) $6,575
Private Party: ("Good" condition) $8,570

I'm thinking I'll probably be rebucketed in another month or two, when I get past 660. But I've only begun to establish myself in the past year. Never had a late payment, my only derog is on EX. TU and EQ are both clean and clear. Currently the only items being reported to the CRAs are my single CC and the auto loan. CC limit of $400 balance is $20. AAoA of both is roughly 10 months.

I'm looking to either trade in or sell my car private party and obtaining a loan for a new car. I'm hoping to aim for 25-30K on the loan.

My question: What's the likelyhood of being approved right now? Or should I wait for another few months so the accounts age and then apply?

[Creditaddict]

I don't see why you wouldn't be approved and if you go with someone like Toyota,  Mazda, Ford I believe all of them have switched to tier 1,2, 3 credit for special financing... with toyota tier 3 is a 650 TU auto enhanced fico.

[nes]

Tier 3 with Mazda/chase is 680(i work there), that should get u 0%

[nes]

Tier 3 with Mazda/chase is 680(i work there), that should get u 0%

[Anonymous]

0% down ? 0% apr at tier 3 doesn't sound right

[Creditaddict]

Might help to put money down, but the 0% is right, tier 3 is 650 with Toyota

[Anonymous]

0% apr for tier 3 at Toyota?

[Creditaddict]

yes. I was trying to lease a prius and they told me they needed to pull a 650 from either EQ or TU (they will use the highest score) to qualify for the lease special they were having a few months ago of $199 2k down, now i think it's $239 no money down

[creditchild]

hey introvert, with your history i would be smart about your next car purchase. like i explained

to another person here, the place to get a auto loan with these days and times would be a credit union.

they have way better rates,and in your case you would most likely get whatever you want.

i just came out of the same situation you are in now. then to make things better, you wouldn't probably

have to put down anything. so just be smart about it.  and weigh your options. we have start being

smart the way we use our credit and spend out money. as you found a while back you really got screwed

 on the last car loan, so just be careful, your in good positon now. GOOD LUCK!!!!!

[Anonymous]

Update: Went to Mazda, negociated on price on a new 2010 Speed3. (I don't remember the exact price, was something like $22000 fully loaded.)  They ran my credit, EX Auto enhanced: 625. Didn't have my trade-in at the time, so she said she wanted to wait until I brought it in.

Went back the next day. The Finance manager came at me with 2K less than KBB trade-in value for my car. I declined and offered $1,000 cash down to obtain a 2nd loan and said I'd take care of the existing loan by selling my car private party. She then came up with a spiel about car's history and basically wanting more cash up front from me as well as my car. I told her that I knew my scores are higher on EQ/TU. She then told me she'd already run my TU score and that it was 675.

Told her I'd stick to $1,000 cash down. She said she'd try Mazda Auto Finance and that she'd call me with status. That was a week ago, she never called.