UPDATE!!!!!!!! Upside down seeking advice!!!!!!!!!

[Anonymous]

I have been rebuilding my credit after a horrible divorce...Now that my Credit is on the up and up. I'm looking 

for a new vehicle but scared I may be denied..I am upside down in my current vehicle 2010 honda crosstour its in good shape 

decent miliage 67,383 however, I have been stuck with 24.14% interest w' payments of $565 and $15,517 left to pay and 44 months left

on the contract. I have had the vechicle now for 3 yrs no late payments.

I though about refinancing but the car is already 6 yrs old granted no issues but what if? also I am only the co-signer on 

the vehicle looking to get from up under my EX and this is the final step..any advice pls leave it below 

My fico scores EX: 700 EQ: 674 TU: 714 (I'm due for my next fico B report june 5th so I don't want to pull for my auto scores) 

income w' Va disability included  61,200

only cards overstock 2,000 w' 0 balance 

discover secure card 300 w' 0 balance 

no baddies clear credit 

[surferchris]

NADA has your car valued at $13,475, thus with a 120% LTV loan, you should be able to refinance at a much lower rate. With your scores most credit unions should give you tier1 or 2 rates (maybe 4 to 7%).  I would try a credit union.  I think it would help.

[Anonymous]

I'm with USAA and tried to refinance through them and they referred me to another who denied me...

Wells fargo offered to refinance for 60 months payment $396 but that 5 yrs on a 6 yr old car..that honda no longer makes 

[Appleman]

Excuse the flurry of ideas below, just trying to think of the best way to improve your situation.

Most will say refinance and pay off the CrossTour will save you the most money.

I tend to think this would be one time rolling a little bit of negative equity into a new vehicle would be a good idea. If you could finance a new vehicle at low (2-5% interest) would be beneficial. You also would have a new car with a warranty. (There are times it can be much easier to get a new car financed than an older car refinanced).

The one thing you do not want to do is show up at a car dealer and let them see what kind of deal they can give you. 

Do the following: Consider the Following:

If you live near a CarMax, take your CrossTour there and get a FREE buy offer (good for 7 days). This will tell you the lowest amount you would want to sell or trade in your vehicle for money wise.

I would look into a new car to roll over some of that negative equity. Say a new Honda or Toyota, I would think that the captive lender would give you a good rate.

Refinancing through USAA can be difficult, I am not surprised they did not approve you.

Do people think she has a chance with PenFed for a loan?

Have you tried the CapitalOne Pre-approval site (the one that does the soft pull)

They are having trouble selling the Dodge Dart / Chrysler 200 as they are discontinuing the vehicle. I know the discounts have been huge on them.

Good luck and please ask any further questions you might have. I certainly want you to find a solution that gets you out of that interest rate. 

[surferchris]

---

@Appleman wrote:

Excuse the flurry of ideas below, just trying to think of the best way to improve your situation.

Most will say refinance and pay off the CrossTour will save you the most money.

I tend to think this would be one time rolling a little bit of negative equity into a new vehicle would be a good idea. If you could finance a new vehicle at low (2-5% interest) would be beneficial. You also would have a new car with a warranty. (There are times it can be much easier to get a new car financed than an older car refinanced).

The one thing you do not want to do is show up at a car dealer and let them see what kind of deal they can give you. 

Do the following: Consider the Following:

If you live near a CarMax, take your CrossTour there and get a FREE buy offer (good for 7 days). This will tell you the lowest amount you would want to sell or trade in your vehicle for money wise.

I would look into a new car to roll over some of that negative equity. Say a new Honda or Toyota, I would think that the captive lender would give you a good rate.

Refinancing through USAA can be difficult, I am not surprised they did not approve you.

Do people think she has a chance with PenFed for a loan?

Have you tried the CapitalOne Pre-approval site (the one that does the soft pull)

They are having trouble selling the Dodge Dart / Chrysler 200 as they are discontinuing the vehicle. I know the discounts have been huge on them.

Good luck and please ask any further questions you might have. I certainly want you to find a solution that gets you out of that interest rate. 

---

Good advice in regards buying a new car and in regards CarMax.

[Anonymous]

Thank you @Appleman 

I was thinking along those lines as well...I finally got up the nerve to check the prequal but I'm going to have to call 

in to verify Identity. My A$$hole of and ex. tried to use my name for some credit...

I was looking into rebates with ford didn't consider dodge and thought about staying with honda but no good rebates 

Thank for the tip about carmax...I didn't consider taking it there since thats where we got it...

I don't mind rolling a lil equity in long as I get a good warranty I don't have a problem with the payment remaining high

but wouldn't mind being in the 450 range on a good quiet ride vehicle 

Do you think I will be able to Qualify for new car financing with USAA? I like they buying process but don't know if I will qualify since they denied me for refi 

[Appleman]

The problem with USAA is that they will want to do another credit pull to see if you qualify for a loan with them. You could call in and ask if an underwriter would look at your denied refinance application and see if they would approve you for a new car loan. They might finance you but it is worth a call. And make sure you let them know you do not want a new Hard Pull unless you talk to an Underwriter and they think they will approve you.

I have bought over 20 cars over the years and have used USAA financing a lot. In recent years they have not been as competitive (for me) but I currently have my daughter's car financed through them. Depending on my credit (at the time) they have been all over the place rate wise and for some deals required money down. It may be worth looking at PenFed as they only pull Equifax once and they use that pull for 90 days. It might be worth joining and see what they can do for a car loan for you. If they say no, it is only one hit on 1 bureau. (there are horror stories of people ending up with 15 inquiries when buying an auto, even if they do count as one for scoring)

,

The CarMax process usually takes an hour if you walk in. I did not realize that CarMax was one of the biggest car buyers in the US so their values let you see what a dealer should give you on trade. It is good to have the FREE service and they were really not high pressure the few times I have used them.

As we all know, car dealers sell cars every day and we (most of us) only buy a car every 2-4 years. It would be great to see you have financing in hand walking into a dealer. 

Over the years I have had great luck on re-sale values with Honda/Acura and Subaru. Dodge/Chrysler some of the worst performing for trade in (my experiences). So if you do go the Dodge/Chrysler route be ready to drive it a long time.

I hope this all works in your favor. Please let us know how things do work out, it usually helps others on myFICO in similar situations. Very unfortunate that your husband had to hurt your credit as well.

Hoping you have a good weekend.

[Anonymous]

Thank u will look at Penfed and thats the goal to go approval in hand I also found jeep as a nice rebate..looking at edmunds.com I might be good I will update I plan on purchasing next week....

[Anonymous]

Last year I went the Dodge Journey route with some negative equity. Don't regret it one bit. If you do go Dodge/Chrysler route make sure you have some sort of extended warranty for at least the life of the loan. I think their product is real nice but would not take a chance on long-term reliability while having a loan. Probably would do that for any car as would not want to have a good sized car payment on a car not under warranty IMO. 

[Anonymous]

PenFed and USAA offer extended warranties I'm go try both tuesday and see what happen USAA has awesome pricing on a Tiguan with almost 9k off MSRP