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Odds of Auto re-finance Approval?

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Frequent Contributor

Odds of Auto re-finance Approval?

Hey all,

  Was wondering my chances of getting my auto loan refinanced with my current credit. Below is my current situation.

 

Current loan with Capital One, 3 months old, Payoff is 37,174 at a 8.99% rate.

 

Current FICO8 is 653 (Experian)
1 Paid Collection

2 Paid Charge-offs
5 INQ


I was pre-approved (soft pull) from AutoPay for 5.44% over 78 months. I realize they are not an actual lender and would simply submit my info to actual lenders should I proceed with the actual application. Is this worth it?

 

Any advice on this?

Message 1 of 9
8 REPLIES 8
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Frequent Contributor

Re: Odds of Auto re-finance Approval?

Everything depends on the car. What is it, what are the miles and KBB Value. I need more pieces of the puzzle.


Starting Score: 475
Current Score: 649
Goal Score: 690


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Message 2 of 9
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Frequent Contributor

Re: Odds of Auto re-finance Approval?

It's a 2018 Toyota Sienna XLE Premium with 2300 miles. KBB lists private value as about 36k
Message 3 of 9
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Frequent Contributor

Re: Odds of Auto re-finance Approval?

Tough refi. I wouldnt go through the people you mentioned. Visiting a local CU is your best option.

Starting Score: 475
Current Score: 649
Goal Score: 690


Take the myFICO Fitness Challenge
Message 4 of 9
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Established Member

Re: Odds of Auto re-finance Approval?

hmmm what are the term of the current loan? also 78 months? How much are your monthly payments now? around $650?

 

Soo what I recently started doing with capital one was making bi-weekly payments and sending additional payment for the principal. Long story short, is like making 13 monthly payments instead of 12 a year. You end up paying the loan faster and end up paying less interest.

 

Assuming my above assumptions are correct, making the bi weakly payments of $349.84 (includes additional $50 a month for principal) you will pay your current loan in 5 years and 2 months Vs 6.5 years, save $2136 on interest and it would be equivalent to refinancing at 7.43%. Still not as low as 5.44% but at least its more than 1.5% in savings. Like you mentioned, that 5.44% may vary once they pull the actual credit.

Message 5 of 9
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Regular Contributor

Re: Odds of Auto re-finance Approval?

I think your first mistake was buying a car you cannot afford and with such a high interest rate. No judgment here..........it’s going to be hard to refinance especially because your car loan is only 3 months old and has depreciated at least 15%. Those sites like autopay make money making the referrals once they do a hp etc you might be surprised the interest rate quoted is much higher
M.Ed., NCC; TU8 760; EQ 775; EX 737; 1% util, Total Available Credit $350k+
Message 6 of 9
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Frequent Contributor

Re: Odds of Auto re-finance Approval?

I didn't say I was refinancing because I couldn't afford it. I can afford the payments no problem. I am simply looking into saving interest. I could go as far to say my first mistake was letting my credit get bad in the first place to have to get a 9% loan. Anyhow to the previous poster, yes you are correct my payments are 660$. I have actually been paying 700$ each month (for the past 3 months) on the loan to pay more towards the principal. I like your method and makes sense to paying less interest over the life of the loan. Based on feedback so far I think I may keep doing this for another 4-6 months and then look into refinancing again

Message 7 of 9
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Established Member

Re: Odds of Auto re-finance Approval?

Make sure the additional $40 are being applied to principal only. Sending $700 and not telling them how to apply it can be an issue. They might apply the payment to accrued interest before applying it to the principal.... I pay via the cap one app and make 2 payments (1 regular the other principal only)... hope this helps and/or makes sense.  

Message 8 of 9
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Frequent Contributor

Re: Odds of Auto re-finance Approval?

Yes it does make sense. Thanks for pointing that out, I will make sure to double check.

Message 9 of 9
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