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Carputty?

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citymunky
Established Contributor

Carputty?

While on the deep end of the web, I came across a company called "Carputty" that offers a Line of Credit (LOC) to purchase a vehicle or two or more🤪 instead of the traditional car loan. While I'm not in the market for a new or newer vehicle right now, I wanted to know that I had options if need ever presented itself. They do a soft pull to see if you qualify, and if you do they present your limit and APR before you agree to the hard pull. Out of the 17 vehicles I owned it my life, I only ever bought two from a dealership so this product is really not for me as I content owning 4 vehicles without any liens. But I figured I'll share with the group, it might help someone. Oh, BTW I was preapproved for LOC of $65K at 8.05% APR, just need the hard pull to confirm, but I'm not cuz I don't need 5 cars.

 

 

 

 

 

 

 

https://www.carputty.com/how-it-works#how-it-works-video

Rebuilding since 2021


Closed CCs
USAA (Jul 2019| Settled CO), Jasper (Jul21-Jul 2022), Sable {Secured} (Jan22-Jun23), CreditOne Platinum (Jul21-Aug23)

Starting FICO 8 Scores:
Current FICO 8 Scores:


Message 1 of 14
13 REPLIES 13
cashorcharge
Community Leader
Super Contributor

Re: Carputty?

Never heard of them, though appreciate hearing about them and the option.  And of course you need 5 cars...you could start your own fleet with a different one each day Smiley Very Happy

Message 2 of 14
805orbust
Valued Contributor

Re: Carputty?

Totally agree with @cashorcharge on this one.  Ok maybe you don't need 5, but what about 4 cars and a truck?

 

Or just get the 5 cars and get the truck down the line. That is really interesting tho, what a concept...  I, for one, will never encourage less machines in the garage.  🤣



Message 3 of 14
increasingmyfico
Regular Contributor

Re: Carputty?

I wonder how they feel about commercial use. This would be great for someone doing Turo or similar. I have to do some digging. 


Message 4 of 14
citymunky
Established Contributor

Re: Carputty?

@805orbust corrections 3 cars and a SUV.

Rebuilding since 2021


Closed CCs
USAA (Jul 2019| Settled CO), Jasper (Jul21-Jul 2022), Sable {Secured} (Jan22-Jun23), CreditOne Platinum (Jul21-Aug23)

Starting FICO 8 Scores:
Current FICO 8 Scores:


Message 5 of 14
FLLGuy
Frequent Contributor

Re: Carputty?

@citymunky  - thanks for sharing.  This is a new Fintech approach which logically makes sense and possible, looks like Carputty seeded pretty decently just over $7M out the gates - let's hope it's sustainable enough.  The concept turning Auto Loan into a revolving line of credit.  However, reading their FAQ's - they don't report to the credit bureaus (Good or Bad you'll have to decide).




Message 6 of 14
citymunky
Established Contributor

Re: Carputty?

@FLLGuy, I did read that in the FAQs. I my case (currently) it would be a plus as I did go crazy with opening a bunch of new accounts with the last two years. However, I built a thick file that can age together for the next few years as I garden. Either way I did go back and read the fine print and learned that once approved, your LOC stays active for 2 years if their is no actively on the account. One there is actively the 2 year clock restarts. So since I'm going to be in the garden for a planned two years anyway for most or not all my INQs fall off, I bite the bullet and applied and was approved for LOC of $74k @ 7.55٪. EX was pulled with no score drop. As long as the vehicle(s) are least than 8 years old, with less than 85K miles they are clear to be added to my LOC.

Rebuilding since 2021


Closed CCs
USAA (Jul 2019| Settled CO), Jasper (Jul21-Jul 2022), Sable {Secured} (Jan22-Jun23), CreditOne Platinum (Jul21-Aug23)

Starting FICO 8 Scores:
Current FICO 8 Scores:


Message 7 of 14
mtnbikeman
Valued Member

Re: Carputty?

Interesting concept. I wonder if they hold an actual "lien" or if it is a rebranded personal loan akin to lightstream products. Regardless rates are WAY too high to be useful. Interior CU and others are offering 1.99%.

Message 8 of 14
citymunky
Established Contributor

Re: Carputty?

They hold the lien(s). While some CU do offer rates as low as 1.99%, that rate would be reserved for people with excellent credit, which I don't have. When my credit improves or my income changes, I can submit an updated application, although I'm not sure if it will be a hard or soft pull to get approved for a new rate. All things considered l, it's not the best rate I had, nor is it the worst.

Rebuilding since 2021


Closed CCs
USAA (Jul 2019| Settled CO), Jasper (Jul21-Jul 2022), Sable {Secured} (Jan22-Jun23), CreditOne Platinum (Jul21-Aug23)

Starting FICO 8 Scores:
Current FICO 8 Scores:


Message 9 of 14
mtnbikeman
Valued Member

Re: Carputty?


@citymunky wrote:

They hold the lien(s). While some CU do offer rates as low as 1.99%, that rate would be reserved for people with excellent credit, which I don't have. When my credit improves or my income changes, I can submit an updated application, although I'm not sure if it will be a hard or soft pull to get approved for a new rate. All things considered l, it's not the best rate I had, nor is it the worst.


I had a BK last year, and scores hovering in the high 600s, and I was approved at 2.24%.... so your statement about the best rates are only for excellent credit is false. Your scores are higher than mine are so there is absolutely no reason to resort to a predatory lender. 

 

Good credit unions are out there but they require some searching. YDY but Interior CU would likely save you a truck load of $ 

Message 10 of 14
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