New auto loan chances?

[Anonymous]

Looking to get a rough idea of how likely a new auto loan is??

Credit Score: 670

AAoA: 7 years

# of positive trade lines: 6

# of negative trade lines: 2

Income: Over 40k

Length of Employment: 2 years 9 months

Previous Loan Experience: Previous auto loan, five years. No missed/late payments. Paid in full.

Debt-to-Income (DTI): Unsure

Year of Car: Current- 2013, will trade in
Worth 6-7k on trade. Owe 10k.
New- 2017/2018

Miles: Current- 56,000, new- 0

Purchase/Refinance: Purchase

Requested loan term (XX Months): 60-84 months

Down payment amount: 2,000

Co-borrower/Co-Signer: None

Other:. I am looking to purchase new. A friend of a friend has employer pricing at GM as a former employee. I cannot sell my current vehicle because I owe more than what it's worth. I do have two charged off accounts, one a student loan and the other a credit card which has been paid off. My current vehicle I've had for two years making payments of $385/month at 24% interest, yes my credit was awful then. I have been doubling up on payments trying to get the balance down. My credit has improved greatly since then.

[Anonymous]

Where did you get your credit score from?

You can always check with Capital One Auto Navigator (it's a soft pull, doesn't affect credit) to see what they preapprove you for and use that as a judgment on apps elsewhere -- if they approve you for a high interest rate, you may get declined elsewhere.

Also, you'll be trading in your car upside down 10% and you won't be putting a down payment down on the new car, so your approved interest rate may be quite a bit higher than if you were buying a car with 20% down.

[DeeBee78]

It would be pretty easy to hide that $2-4k of negative equity in a deal on a leftover 2017 model, and you can probably get approved through GM Financial on something like that. It needs to be noted though: Whatever incentives you're offered, you'll still be upside down on a new car, just like your current one, and for a much longer time. Massive incenetives (like the ridiculous 18% they're taking of the MSRP on Buicks right now) lower your vehicle's value immediately, not even including the standard depreciation. Your $35K purchase could only be worth $20K in just one year. This is the way American car companies do business. No one else in the business destroys their car's values quite like the Detroit Three. 

What are you driving now that's only worth $6-7K on trade in after barely 5 years and 56K miles? If you took that $2K and made a principal payment towards the loan, I would bet you could get refinainced through DCU at a much better rate than 24%.

[Anonymous]

I have a '13 Sonic, that's why it's so low. I've thought about refinancing, and I'm only a month or two away from being able to based on the ltv now but,

My understanding on employee pricing is it's 20% off the price and 15% off options. Plus with customer cash, down payment, and trade in with negative equity roll over I'll be at 17-18k. Im really hoping fir a lower payment n interest rate which I can also get refinancing. However regardless if I can get a lower payment I can pay it off even quicker.

[lexus829]

2 years on time payment? you should be ok to refi and get a lower rate or buy a new car, unless you have other derogs? You can easily bury the negative on the new car seeing how much discount youre getting.. or maybe you should bury the negative lease a car instead and get out after 36 months... if buying make sure you want the car and keeping it longer or you'll be in same situation as now just with lower interest... from what Audi and Porsche told me 12 months on the loan is good enough for them to reconsider but then I was an old customer.. Im sure GM is a bit more lenient..

[DeeBee78]

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@Anonymous wrote:
I have a '13 Sonic, that's why it's so low. I've thought about refinancing, and I'm only a month or two away from being able to based on the ltv now but,

My understanding on employee pricing is it's 20% off the price and 15% off options. Plus with customer cash, down payment, and trade in with negative equity roll over I'll be at 17-18k. Im really hoping fir a lower payment n interest rate which I can also get refinancing. However regardless if I can get a lower payment I can pay it off even quicker.

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Well, you can go here and build your vehicle with employee pricing, and current incentives, to see a more exact cost:

https://www.gmded.com/?eVar25=GM_COM_CURR_OFF_LRN_MORE_EDU 

Also, some credit unions (like DCU that I mentioned before) will refi up to 120% LTV. This means if your car is worth $7K, they might finance you for $8,400. 

[Anonymous]

I'm currently under GM Financial so keeping me aboard should be fairly easy...I think. My biggest concern is getting approved for a new loan. If I go through a dealer they'll hit my credit multiple times. If I go through Capital one, Prospect, DCU, etc it'll be easier but they don't estimate my trade in. What way do you guys recommend attempting to get a new loan?

[lexus829]

I dont see a reason why you wouldnt get approved if youre within your DTI limit.. better to do it with GM and dealer they make money on financing too so might be a better bargaining tool for you, then shop around for lower interest rate if you dont get what you want or think you qualify for....

[JGGM]

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@Anonymous wrote:
I have a '13 Sonic, that's why it's so low. I've thought about refinancing, and I'm only a month or two away from being able to based on the ltv now but,

My understanding on employee pricing is it's 20% off the price and 15% off options. Plus with customer cash, down payment, and trade in with negative equity roll over I'll be at 17-18k. Im really hoping fir a lower payment n interest rate which I can also get refinancing. However regardless if I can get a lower payment I can pay it off even quicker.

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FYI - if there's 20% off MSRP then that's the only incentive. I.E.: MSRP $20,000. If the current incentive is 20% off, then your purchase price is $16,000. There are no other incentives unless you have GM Card earnings. It's called a "standalone" offer when you see the % off incentives with GM. A GM Employee code and or supplier code will not affect pricing on this incentive plan.  So, just to clarify, you would not be getting 20% off vehicle + more rebates + any other discount. Standalone offers are one of those "it is what it is" situations. 

If you purchase a 2018, and IF you qualify for employee price, then you'd get employee price on that vehicle less any applicable rebates. I didn't think GM employees could share their code with "friends of friends" - usually it has to be family members. So, if you get a code, you'll want to confirm with a dealer that the code you received is for employee price, kind of sounds like if you got anything from this friend of friend it would be GM supplier pricing - not the same price point. Also, regardless of the code you get, it's not % off vehicle and % off options. Literally each VIN has on its invoice, a line that says "Employ" (for employee price) and "Supplr" (GM Supplier). 

[Anonymous]

I am not sure where you got your information but the GM employee discount is not the only discount. The person I'll be getting it from was also able to get a code and was able to use the code plus cash back incentives. He bought a brand new 35k truck for just under 20k, doubt that's just one discount.