Refinance Rates lower than New Vehicle Loan Rates?

Dj4Money · ‎05-10-2015

Curious -

I was looking at the offers from Experian's monitoring service.

With my current score of 632 (balances haven't update yet, SDFC is now $0, Cap One is at $89, will get that down to 9% before statement hits on the 21st) I get several offers for Refi the best being IFS; 72 months @5.49%

When I switch to New Auto Loan, the rates go up to as high as 9.99% (Car Finance dot com) or Capital One based of 8.89%. I actually get a slightly better rate on a used car (8.69%).

Why is that? Yes that's a major improvement from 18.65% in either case. I know my current scores don't reflect my new balances and my next car payment won't report until June because it's at the end of the month.

Is it unreasonable to expect a complete jump up to the next Tier?

Creditaddict · ‎05-10-2015

I wouldn't pay attention to those at all as they are advertising using a range of score that isn't even the score they pull AND based on who knows what other than the score and we all know credit is way more than just a score for getting approved and rates decided.

pretty sure you are here in CA so really not sure why you have not tried a conversation with Burbank City Credit Union... They pull a straight TU Fico only and that decides the APR if approved, they are very flexible with accepting all forms of income including Lyft and Uber also.

ezdriver · ‎05-10-2015

Auto loan rate is always higher for used vehicles vs new. Even among used, some lenders have futher categories [eg: USED, OLDER, etc] that has model year cutoffs. I recently was quoted [CU] 2.3% on a 2008 Porsche 911 and 9% on a 2007 Porsche 911...both having about same mileage. Then I checked with Wells Fargo and was told that their rates are based on the specific vehicle scenario [eg: a 2008 with higher mileage can have a higher rate than a 2007 with lower mileage].

Dj4Money · ‎05-10-2015

@Creditaddict wrote:
I wouldn't pay attention to those at all as they are advertising using a range of score that isn't even the score they pull AND based on who knows what other than the score and we all know credit is way more than just a score for getting approved and rates decided.
pretty sure you are here in CA so really not sure why you have not tried a conversation with Burbank City Credit Union... They pull a straight TU Fico only and that decides the APR if approved, they are very flexible with accepting all forms of income including Lyft and Uber also.

I will be going on a bit of an app spree once my scores up date. Looking at what CUs, Banks, Lenders I want to target. I am sort of off the CU bandwagon at the moment I can't get either of my CU's to really help me. Seems my FICO '08 scores are stuck at 608. That would be very unusual to see a jump beyond say 640 with the balances way down.

I don't drive for Lyft or Uber, I got accepted by both, they are in my back pocket. I am doing what I did before merchandising. My unearned income has been greatly reduced but I still meet the majority of lenders min requirements.

Dj4Money · ‎05-10-2015

@ezdriver wrote:
Auto loan rate is always higher for used vehicles vs new. Even among used, some lenders have futher categories [eg: USED, OLDER, etc] that has model year cutoffs. I recently was quoted [CU] 2.3% on a 2008 Porsche 911 and 9% on a 2007 Porsche 911...both having about same mileage. Then I checked with Wells Fargo and was told that their rates are based on the specific vehicle scenario [eg: a 2008 with higher mileage can have a higher rate than a 2007 with lower mileage].

That's what I assumed. I didn't take these offers as gospel I just thought it was bizare because any time I looked at used rates vs. new rates new is always better even with bad credit.

I was just wondering why re-fi offerings were better than new.

So the wait beings.... First statement will be out (SDFC) the 15th.