How do I attack these two auto loans?

[jamevfan]

Long story short... I financed my 2009 Infiniti G37s in 9/2015 at 18,480.... intrest rate of 18.49% (i know)......My scores were around 576.

Fast forward to now, scores 690's 700's I plan on getting with PenFed but my Eqifax is 668 with 1 old derog in June 2010

I would prefer a new vehcile but im sure im upside down and dont have the money to pay the diffrence, At the least can I get a new vehicle going through PENFEd ive heard of thier great APR.

If not then I will settle for refinance, (Does current year and mileage matter with refinance?) I need better payments we are closing on a home in the next week and im trying to lower bills.

My husband has the same type of subprime car loan but his credit is still low 600's can I cosigned on his loan for a lower rate? it will help out with lowering our overall house hold bills?

CAN BOTH BE DONE?

[DeeBee78]

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@jamevfan wrote:

Long story short... I financed my 2009 Infiniti G37s in 9/2015 at 18,480.... intrest rate of 18.49% (i know)......My scores were around 576.

Fast forward to now, scores 690's 700's I plan on getting with PenFed but my Eqifax is 668 with 1 old derog in June 2010

I would prefer a new vehcile but im sure im upside down and dont have the money to pay the diffrence, At the least can I get a new vehicle going through PENFEd ive heard of thier great APR.

If not then I will settle for refinance, (Does current year and mileage matter with refinance?) I need better payments we are closing on a home in the next week and im trying to lower bills.

My husband has the same type of subprime car loan but his credit is still low 600's can I cosigned on his loan for a lower rate? it will help out with lowering our overall house hold bills?

CAN BOTH BE DONE?

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Most lenders will not lend more than 120% of the vehicle's value on a refinance, and yes, year and mileage count. Usually it's 7-10 years, and 50-90K miles max, depending on the lender.

You need to find the Nada retail value of your car(s), add 20%, and come up with the difference in cash to reach your current payoff amount. 

[jamevfan]

So the NADA website can give me the current value?  ugh im probably upside down big time...

[DeeBee78]

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@jamevfan wrote:

So the NADA website can give me the current value?  ugh im probably upside down big time...

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Most people who finance a car without putting 20% down are upside down for the first half of the loan. Never listen to the salesperson when they say you'll be able to refinance in 6 months or a year, because without a large cash payment to bring the LTV back down you're not going to be able to. 

[jamevfan]

Lesson learned.....

[Anonymous]

I'm not sure about your odds with PenFed, but DCU may be another CU to look at even for your husband.
I got my car re-financed with them last year for 3.49% and only had a 631 EQ (per them) at the time. I think they use Fico4 as a model. You may be able to talk with them about what you would like to do before actually applying; hopefully they could give you some guidance to help you decide wether or not to apply

[Appleman]

You are closing in a week on a house???? Be careful about applying for new credit without consulting with your loan officer.

It looks like you are trying to improve your DTI, does it need to be improved prior to closing? It will be difficult to prove this to the Loan Officer in a week.

Good luck and let us know how things go...

[jamevfan]

@Appleman lol i wouldnt DARE touch my credit until after I close and yes we are closing in a week. Im a planner and want to know in advance the strategy im going to take to get our cars refinanced. So im just seeking advice in this case I will not act upon it just yet.

I was planning on getting with Penfed but need my EQ to be a bit better so I will be working on that DCU I havent researched much but will look into it.

[StartingOver10]

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@DeeBee78 wrote:

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@jamevfan wrote:

So the NADA website can give me the current value?  ugh im probably upside down big time...

---

Most people who finance a car without putting 20% down are upside down for the first half of the loan. Never listen to the salesperson when they say you'll be able to refinance in 6 months or a year, because without a large cash payment to bring the LTV back down you're not going to be able to. 

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^^^So true.  

In fact, it is a red flag if a sales rep or F&I person uses this "you can refi in 6 months to a year" argument to get you to sign for an outrageous interest rate IMO.  They know you will be totally upside down unless you have put down a substantial down payment.  Besides - you don't get a refi from a dealership. The only thing they can do is a trade - which makes the situation worse. Remember the dealership is looking out for their interests....not yours. 

I know you know all of this jamevfan. Just trying to prevent others from falling for this old line. 

[Anonymous]

Definitely don't do anything until you fully close on the house. Any credit activity will mess up the closing on your house big time.  I ended up renting cars for 6 months while our house was finishing construction after a car theft to avoid this situation.  If you significantly upside down which I am sure you are I wouldnt put a bunch of energy into trying to refinance because your likely to get declined.  I would wait till the house closes and than explore options.  One might be to make extra principle payments or set aside money in savings until the Loan to Value is within 110% and then refinance.  I am not a fan of buying another car and rolling costs into a new loan, sure you can get a lower monthly payment but then you are even deeper in the hole of negative equity at the same time you are learning about the hidden costs of new home ownership.  I would build a budget for your new reality and stick to it, plan for money to go into savings to work on that negative equity and when you have 6 months to a year under your belt you will have many more options.  You will find folks that suggest you buy a new car with a huge rebate to get yourself out of this situation but when they put those big rebates on those cars the actual values are depreciated to the true cash value so again your in a negative equity situation.  Going forward do all you can to at least put tax and licensing down to minimize the negative equity but remember that you will always have to factor in negative equity into your situation especially if you need to refinace down the road because of high APR