how hard would be to get ~18k auto loan?

Anonymous · ‎04-16-2009

input data:

- my fico score around 630 (Equifax)..recently dropped down because of balances increase on my cc.

- going to pay down cc completely along with other accounts (macys/old navy etc)

- currently have 21k balance on my auto loan (9.5% for 60months)

- no late payments whatsoever

- oldest credit account is about 2y

plan:

- need to get different car since would be changing job in about 5 months. Would need to commute much more

- looking to get used acura/honda for around 17k

- try to trade in current car for about 19k which will puts me on negative diff (~2k diff)

Q: as title says. Trying to get some input on what would be the best plan here.. thoughts?

--thanks in advance

Message Edited by protege on 04-16-2009 05:39 PM

trudawg660 · ‎04-16-2009

Welcome to the board,

it would be way smarter to sell your car and not trade it in, with a trade in of 19,000 you should be able to get 21,000 or more selling it to someone else. and where do you plan on getting a loan though?

Anonymous · ‎04-16-2009

thanks for welcoming in. I was around for quite a long time just did not post..

on subj: I dont have time to deal with selling plus dont like dealing with stupid ppl comming in etc etc

I think you got a point

ahh.. and regarding lender... I would like to go with honda financial services since car I consider buying is certified and there are special low financing for certified vehicles. But due to legal issues (status expiration) I think I would not be able to do that since they check the "poof of stay" (I call it that way); lets say I want to get loan for 60 months.. would not be able to do that since my status here expires in about 2 years.. etc

However on other side it would be disapointing getting 8% instead of say 4%.. already feel the pain...

thanks for reply

Message Edited by protege on 04-16-2009 06:35 PM

trudawg660 · ‎04-16-2009

Going though the finance through the dealership can get you a low apr for the first 24 months. but for the most part is a bad idea, to me anyway. they are more willing to take advantage of a person more than your personal bank or credit union. and with a credit union they don't check anything "to my knowledge" anything more than your credit history and credit score and your household income. the status expires seem to come in hand more when you are trying to lease. BUT I MIGHT BE WRONG. In my opinion you should talk to a credit union and take that 1 percent higher apr and get treated like a person, than go through a dealer and get treated like a number on paper with with a down payment. And also i have heard of times when people agree to a APR with the dealer and finance department and after you take the car home for a couple days you get a phone call saying you didn't qualify for negotiated APR and now its like 3 or 4 percent higher.

Am about to apply for a new car loan myself in the next couple weeks. and it will be though a credit union.

Message Edited by trudawg660 on 04-16-2009 08:12 PM

Anonymous · ‎04-17-2009

thanks for suggestion and thoughts. Hopefully cs would go up soon since I almost paid cc/store cc off.

I never had a chance to deal with personal banks or credit unions. Any advice?

Getting back to hfs.. two options.. if you take car but they still need to verify smth - they force you to sign a notice that your apr may be reconsidered after docs reviewed. Happened to a friend of mine. Same with loan term.. they give you loan for exact time you can be in valid status in US.

But I hear you.. will try to check more on credit unions.. thanks.

Message Edited by protege on 04-17-2009 07:48 AM

trudawg660 · ‎04-17-2009

I have USAA but you need a military affliction to get a account there. Pentagon Federal is also a good credit union its Department of Defense orientated but you can get a membership by this website.

https://www.penfed.org/membershipApplication/2008/nmfa.asp

Anonymous · ‎04-17-2009

so what would be the best action plan here? simply join and apply for auto loan?

or maybe try to build up their confidence in me first...

trudawg660 · ‎04-17-2009

You can join and apply right away. If you are confidante everything is ok with your credit.

Anonymous · ‎04-29-2009

thanks for suggestion. I'm pretty set whith what car I want to get. Now waiting for CS to go back up.

last month (march 28) I got a score watch alert for balance increase on my oldnavy card. I paid it off two weeks ago and was expecting oldnavy to do the same and report new balance on apr 28 and force to recalculate credit score.

Received nothing. I set my target score in score watch to be 1 point more than current. Still nothing..

so do you think oldnavy reports on different dates or smth? what could be the reason? thanks again

Anonymous · ‎04-30-2009

I hear many people say they don't like the hassle and dealing with people, don't have time, etc.

But what would you have time for if I offered to pay you $2000 cash? Most people think their job is a hassle part of the time. I would seriously reconsider doing negative equity simply for convenience. If you invest 20 hours total time in selling your car that is $100 per hour wages. Do you make that much on your job? For $100 per hour, I think it might be worth some time. Of course, I am just trying to put it into different terms and perspective for your consideration.

Good luck