NFCU Auto Loan

[wxman2021]

Hey Friends!  I have a 15 GMC Acadia, with NFCU (refi with them about a year ago) and owe like $19k left.  8.53% APR (score was like 640 at the time of approval)......So....anywho, I think the high end of trade-in value is like $12k, so yall are smart...yes $7k negative. So, I have been eyeing the Model 3 Tesla.  I pay $500 a month on my current loan, and know will go up a bit on a new Tesla model 3 (I think around $38k ish) They do have a $7500 Tax credit as well, so that will help getting some money back early next year on taxes.  

Thanks for reading...ok, quesion:

My TU 9 is now 724 and DTI is around 28%. I have 2 NFCU cards with 0/8000 cash rewards and 0/1500 more rewards.  I have had them for 2 years and 1 year now. Total time 2 years with NFCU and have savings account with them.  

2 years and 1 month post BK7 DC.  All thats showing, bad wise on TU, is just the BK now.  

I know its a HP to see about auto finance, no biggie there, but will NFCU show your down payment, if need one, and then rate and months you requested if they approve you?  How do they deal with negative equity?  Do they do 125% LTV on the new vehicle?  Any help, thanks yall!!

[AutisticPretzel]

NFCU doesn't do down payments, per se. You will simply request the maximum amount of money that you need, negative equity included, and then apply for that. You will obviously need to come out of pocket if they aren't willing to lend the total amount of money that you need in order to cover the difference.

NFCU is pretty lenient when it comes to auto lending, so they will definitely do 125% LTV. If you can somehow work a great deal on your new vehicle and get top dollar for your vehicle by selling it yourself, you may be able to somewhat break even or limit the amount of money you may need to come out of pocket.

If approved, they instantly show you all potential terms (48 months/5.5% - 60 months/ 6.7% - 72 months/ 7.9% etc) and you simply choose one.

[wxman2021]

@AutisticPretzel 

Thank you soooooo much for explaining this.  I really appreciate the insight and how it works.  It sounds like it just depends on if I want to try for the car loan at this point.  Pre-approval would obviously be telling *if approved* to see what terms and rates and just go from there.  I would assume they would pay off my trade in loan *it is with them now* correct?

[AutisticPretzel]

"I would assume they would pay off my trade in loan" - If by "they" you mean NFCU, the answer is no. The dealership where you're trading in your vehicle will be the ones to cut a check to your current finance company to pay the vehicle off... And of course you're best off just paying for the negative equity out of pocket instead of rolling it over into a new loan and paying interest on it.

Long story short, in case you don't have the funds to pay for the difference in your old vehicle payoff and the trade in price being offered by a seller/dealer, just ask for that additional amount in your loan request.

New car asking price + tax/tag/title + negative equity.