Cap1 Auto Navigator Approval!!!

[Anonymous]

I pulled the trigger and was pre-qualified through Auto Navigator only a month from Ch 7 discharge. My 2006 Hyundai Sonata with 213,000 miles is on it's last leg 

My prequal requires $1000 down. I found the car I love through a participating dealer, Carmax.

Car:

2015 Mercedes-Benz C250 Sport coupe w/ 27,700 miles for $21,998. It was a lease with 2 owners. No damage or accidents.

Rate is high at 10.43% but I will refinance with my credit union in 6-8 months. I'm not worried about being upside down as I will be paying $1000 each month. Monthly payment came out $421 over 72 months. Scores in sig when applied. Cap1 hard pulled all 3.

I'm currently waiting for the car to be shipped to my Carmax location.

Questions: 

Is the Maxcare worth the additional cost?

Does Capital One allow additional payments outside of the monthly payment?

[Jannelo]

Yes, Cap  One allows payments to principal.   In fact, they seem to encourage it.  Online they have your loan tracker.  And they have it to where it helps you see if you pay extra each month how much quicker you will pay it off and also has a space for extra principal payments showing you how it will speed up the paying off of your loan and when.  The first time I forgot to make the principal payment separate  and just rounded up my monthly payment  $50 extra, and they separated it out for me and applied the extra amount to principal.   I even pay my payment three weeks early every month and it shows how much I am saving in interest as far as what is applied to principal and what amount to loan.   Four months in and my loan is already tracking to pay it off three months earlier than the loan shows and they've updated that new payoff date.

Congratulations on your car!

[Shooting-For-800]

How much is the extended warranty?

CarMax warranties do cover a lot, but value depends on price and terms.

Yes, you can always pay extra to Cap One but your next due date will not advance.

It is a simple interest loan, so it will go towards your principle.

[Anonymous]

I worked for Carmax from 2014-2016 and my bestfriend is a service writer for thm still. On a used Mercedes I would definately recommend the MaxCare. It will be expensive but will cover just about everything that will break on a 4 year old luxury car. Just an oil change on it will be around $100. 

Best example I have of MaxCare working: We had a client buy a 2012 Audi Q5 with 30k miles on it for about $25k. In 2016, the engine quite literally blew. By this point, the car was out of manufacturer waranty.  A piston ring failed and caused oil to seep into the combustion chamber which in turn cause even more damage. The labor and cost for a new engine at the time came out to just under $15k. The customer paid their $50 deductible. 

[Anonymous]

---

@Shooting-For-800 wrote:

How much is the extended warranty?

CarMax warranties do cover a lot, but value depends on price and terms.

Yes, you can always pay extra to Cap One but your next due date will not advance.

It is a simple interest loan, so it will go towards your principle.

---

If I did my math correct, Carmax said $38 additionally on the monthly payment making it $38 x 72 months = $2736. Monthly payment would be ~ $450. The difference of my $1000 payment will go towards the principal.

Thank you all for the advice. I had been going back and forth but knew I would want the peace of mind if anything major comes up with repairs. I did price a warranty with my local credit union that would be $2475. Just need to compare coverage.

[Anonymous]

Another question:

The sales consultant recommended MaxCare to have coverage even though I'll refinance in 6-8 months. He stated that I would receive a prorated refund of the extended warranty. Does that sound right? 

[Anonymous]

You should be able to refinance the warranty as well. It will depend on the Loan-to-Value percentage that varies depending on who you are looking to refi with. 

EX.

Car Cost = $20k

LTV = 110%

Warranty Cost = $1500

With an LTV of 110%,  the total amount you are allowed to borrow is $22k. With the warranty, the cost of the car is $21.5k which is within the limit of the LTV. 

Same concept applies to refinancing. 

[Shooting-For-800]

---

@Anonymous wrote:

Another question:

The sales consultant recommended MaxCare to have coverage even though I'll refinance in 6-8 months. He stated that I would receive a prorated refund of the extended warranty. Does that sound right? 

---

Should be able to find it in writing, but yea, they prorate refunds (or used to.)

Google "doug demuro carmax warranty" - he is a big youtube guy who also works for autotrader.  He bought a Range Rover at CarMax with the warranty and got like $20k in repairs.

I would find out how to keep the warranty after refi.  The older it gets the more problems.

The warranty also is/used to be transferable if you sell the car.  That is/was a huge plus.

[Shooting-For-800]

---

@Anonymous wrote:

---

@Shooting-For-800 wrote:

How much is the extended warranty?

CarMax warranties do cover a lot, but value depends on price and terms.

Yes, you can always pay extra to Cap One but your next due date will not advance.

It is a simple interest loan, so it will go towards your principle.

---

If I did my math correct, Carmax said $38 additionally on the monthly payment making it $38 x 72 months = $2736. Monthly payment would be ~ $450. The difference of my $1000 payment will go towards the principal.

Thank you all for the advice. I had been going back and forth but knew I would want the peace of mind if anything major comes up with repairs. I did price a warranty with my local credit union that would be $2475. Just need to compare coverage.

---

$2736 would also include your high loan apr.  It is probably like $2,000.  For $2,000, I would buy it.

You can (used to be able to) take it to the DEALERSHIP.  So a BMW goes to BMW, a Mercedes goes to Mercedes, etc.  Not some shade tree mechanic.  

[Anonymous]

Congrats.  How did auto-navigator calculate your student loans?  Were they still in deferement at that point or where they now officially on an ibr? i'm in the same boat with about the same amount of student debt.  So just wondering, thanks for your input!!