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DCU Approved but I need to trade in current car w/ a DCU loan....

zerobacan
Established Contributor

DCU Approved but I need to trade in current car w/ a DCU loan....

Hello

 

I have DCU auto loan for 11.600 right now (Honda Accord 2007 132.000 Miles on it)

 

I want to get a newer car, so I got approved for a $20ks loanwith a 5.9% APR (646 FICO in EQ) to buy one, pending the sale of my current card.

 

Im hoping for the auto dealer to offer me about $8.5ks for my car which will leave me with a difference of 3100 That I will have to pay up front or

 

the DCU loan lady told me  that they will finance the 100% of the NADA value of the new card.

 

So the car (2011 Nissan Altima 36.000 Miles) im getting is value in "NADA" for $16.000 and the sale price with taxes should be arround 14800+ or -

 

so i will be able to put 1300 of the 3100 back into the loan leaving me with a pending balance of 1800.

The DCU loan lady told me that they can try to give me a personal loan for that difference....

 

Comments?

 

Amex PRG NPSL, Amex Delta 2k (AU) Discover iT 5k, BOFA Siggy $5k, BOFA AlaskaAir Siggy 5k, BBVA Compass $5k! Macy's $4.5k, C1 $2.5, SFCU $2.5k, SFCU LOC $2k, Paypal SmartC $4k, Sam's 5.5k Victoria Secret $2k, Kay's $1.7k.,76/Citi $1.5k Amazon $5k, Walmart Disco $3k JC Penny $4k, C1 $2.5, BBRZ 700.
Starting:TU:536 EXP:561 : EQ:552 Current:TU:680 Walmart (2-15-14)EXP:712 FICO!! (12-4-13):EQ:622 (FICO 2-6-14) Uti 27% Goal: 720 By 12-13.
Message 1 of 9
8 REPLIES 8
Hoya08
Regular Contributor

Re: DCU Approved but I need to trade in current car w/ a DCU loan....


@zerobacan wrote:

so i will be able to put 1300 of the 3100 back into the loan leaving me with a pending balance of 1800.

The DCU loan lady told me that they can try to give me a personal loan for that difference....

 

Comments?

 


As for the negative-equity of 1800, do you have enough savings to pay-it off?  A personal loan will most likely start in the 7-9% range.

 

It's not a bad plan though.

Message 2 of 9
zerobacan
Established Contributor

Re: DCU Approved but I need to trade in current car w/ a DCU loan....

I kinda dont have 1800 up front. I can come up with 1000. Im still thinking what to do

 

Maybe I can get them to lower the price of the nissan and therefore have more room in the new loan to kill the difference.

Amex PRG NPSL, Amex Delta 2k (AU) Discover iT 5k, BOFA Siggy $5k, BOFA AlaskaAir Siggy 5k, BBVA Compass $5k! Macy's $4.5k, C1 $2.5, SFCU $2.5k, SFCU LOC $2k, Paypal SmartC $4k, Sam's 5.5k Victoria Secret $2k, Kay's $1.7k.,76/Citi $1.5k Amazon $5k, Walmart Disco $3k JC Penny $4k, C1 $2.5, BBRZ 700.
Starting:TU:536 EXP:561 : EQ:552 Current:TU:680 Walmart (2-15-14)EXP:712 FICO!! (12-4-13):EQ:622 (FICO 2-6-14) Uti 27% Goal: 720 By 12-13.
Message 3 of 9
GatorGuy
New Contributor

Re: DCU Approved but I need to trade in current car w/ a DCU loan....

I wouldn't do it. I would say find a cheaper car. It sounds like you can't afford it. I never recommend rolling over the difference of a current car to a new loan.

Message 4 of 9
oscar_actuary
Frequent Contributor

Re: DCU Approved but I need to trade in current car w/ a DCU loan....


@GatorGuy wrote:

I wouldn't do it. I would say find a cheaper car. It sounds like you can't afford it. I never recommend rolling over the difference of a current car to a new loan.


I generally agree that you might be dabbling above your comfort level.

However, if you are going to be doing so, no matter what we say; then I think effectively spending $6k to swap an Accord with 132k for an Altima with 32k, is hecka good trade.

 

Real opinon though, is that you should re-adjust your expectations or spending habits.  Being upside down on a 6 yr old car by that much - and seriously Accords hold up well - is something that raised a flag upon reading.

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Message 5 of 9
zerobacan
Established Contributor

Re: DCU Approved but I need to trade in current car w/ a DCU loan....

I really appreciated your guys comments and advise!

 

Im currently thinking of statying with the Honda, and lower my principal at the same time of improving my score.

 

In about 6 more months I should be able to lower the balance to atleast 10ks and have about 700+ in my score

Amex PRG NPSL, Amex Delta 2k (AU) Discover iT 5k, BOFA Siggy $5k, BOFA AlaskaAir Siggy 5k, BBVA Compass $5k! Macy's $4.5k, C1 $2.5, SFCU $2.5k, SFCU LOC $2k, Paypal SmartC $4k, Sam's 5.5k Victoria Secret $2k, Kay's $1.7k.,76/Citi $1.5k Amazon $5k, Walmart Disco $3k JC Penny $4k, C1 $2.5, BBRZ 700.
Starting:TU:536 EXP:561 : EQ:552 Current:TU:680 Walmart (2-15-14)EXP:712 FICO!! (12-4-13):EQ:622 (FICO 2-6-14) Uti 27% Goal: 720 By 12-13.
Message 6 of 9
sccredit
Valued Contributor

Re: DCU Approved but I need to trade in current car w/ a DCU loan....


@zerobacan wrote:

I really appreciated your guys comments and advise!

 

Im currently thinking of statying with the Honda, and lower my principal at the same time of improving my score.

 

In about 6 more months I should be able to lower the balance to atleast 10ks and have about 700+ in my score


If you drop the principal $10k and are in the 700s score wise you could walk into a car purchase with positive equity and DCU's lowest rates.  Something to ponder

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Message 7 of 9
zerobacan
Established Contributor

Re: DCU Approved but I need to trade in current car w/ a DCU loan....


@sccredit wrote:

@zerobacan wrote:

I really appreciated your guys comments and advise!

 

Im currently thinking of statying with the Honda, and lower my principal at the same time of improving my score.

 

In about 6 more months I should be able to lower the balance to atleast 10ks and have about 700+ in my score


If you drop the principal $10k and are in the 700s score wise you could walk into a car purchase with positive equity and DCU's lowest rates.  Something to ponder


btw me and you guys, the principal reason of my seeking another car, was that my honda looked like it was going to start giving me trouble... Im going to change a part to it and see if that will heal it for the next 6 months Smiley Happy

Amex PRG NPSL, Amex Delta 2k (AU) Discover iT 5k, BOFA Siggy $5k, BOFA AlaskaAir Siggy 5k, BBVA Compass $5k! Macy's $4.5k, C1 $2.5, SFCU $2.5k, SFCU LOC $2k, Paypal SmartC $4k, Sam's 5.5k Victoria Secret $2k, Kay's $1.7k.,76/Citi $1.5k Amazon $5k, Walmart Disco $3k JC Penny $4k, C1 $2.5, BBRZ 700.
Starting:TU:536 EXP:561 : EQ:552 Current:TU:680 Walmart (2-15-14)EXP:712 FICO!! (12-4-13):EQ:622 (FICO 2-6-14) Uti 27% Goal: 720 By 12-13.
Message 8 of 9
GatorGuy
New Contributor

Re: DCU Approved but I need to trade in current car w/ a DCU loan....


@sccredit wrote:

@zerobacan wrote:

I really appreciated your guys comments and advise!

 

Im currently thinking of statying with the Honda, and lower my principal at the same time of improving my score.

 

In about 6 more months I should be able to lower the balance to atleast 10ks and have about 700+ in my score


If you drop the principal $10k and are in the 700s score wise you could walk into a car purchase with positive equity and DCU's lowest rates.  Something to ponder


Absolutely agree and this is the way to get AHEAD rather than struggling to stay where you are. Car purchases are a necessity but they are a depreciable asset so you will always lose money on the deal. The better the credit and the longer you can wait the better off you will be.

Message 9 of 9
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