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Negative Equity Auto Loan Refi?

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Negative Equity Auto Loan Refi?

I've recently gotten myself into a negative equity situation with a new car purchase made last October. At the time, we accepted pretty tough terms for a 2016 Ford Focus financed with Santander at an APR of about 23%. We purchased the car for about $19500, and now still owe about $19000, while the car is now valued at about $11000-$12000. I know making higher payments can help lower this and thus help this situation, so my goal is to add at least $100-200 extra onto every monthly payment I can.

My credit score was less than ideal then, and probably would have been best just to wait on the vehicle. It's been about six months into the loan, with no late payments. Is it smart to attempt to refi soon? Should I wait until the loan has more time established and is payed down lower?

The only other credit I have is a $1000 secured visa through Arrowhead CU, (opened September 2016) and a new approval from CreditOne for those less than ideal terms.

My FicoScore shows on the Arrowhead card most recently as 612.

Any help or advise here would be ideal.
Message 1 of 5
4 REPLIES 4
Valued Contributor

Re: Negative Equity Auto Loan Refi?

Some will do it as a "new car" refi, depending on how many miles you have on it.  Check the Cap 1 auto nav. and NFCU



EQ 778 EXP 782 TU 729
Message 2 of 5
New Contributor

Re: Negative Equity Auto Loan Refi?

I found myself in the same situation with Santander with a 18% APR on a 2017 Toyota Camry last month. In two weeks I got the vehicle refinanced with PENFED credit union with a 5.9% APR.

BK Filed 06/15 and D/C 09/15 Current FICO 8 November 2017 EQ 641 EX 645 TU 662 CAP 1 Venture MC 11.2 k, BOA Cash Reward Visa $2k, Target $2.2k, Banana Republic $6k, NFCU $30k, NavChek CLOC $15k, NFCU AMEX Rewards $13.5k, NFCU Visa Signature Flagship Reward $5.5, Barclays NFL $11.5k, Discover IT Cash Back $7.6k, Discover IT Travel $13.7k PayPal $5.9k, Wal-Mart $6k, Amazon Prime $6k, Belk 1k, PENFED Power Cash Reward 20k, PENFED AMEX $20K, PENFED Credit Union CLOC 1.5k, PENFED New Car Loan 6% APR 33k 72 MTHS, PENFED Signature Loan 19k 48 MTHS, Nordstrom 7.5k; Care Credit $12k, Raymour & Flannigan $5.7. Total CC Limits 196K.
Message 3 of 5
New Member

Re: Negative Equity Auto Loan Refi?

I've heard a lot about NFCU and PENFED but I don't see any way that I meet the membership for either, I was hoping to go through one of two local CU's I'm a member of, hoping they offer something ideal.
Message 4 of 5
Valued Contributor

Re: Negative Equity Auto Loan Refi?


@Candor wrote:
I've heard a lot about NFCU and PENFED but I don't see any way that I meet the membership for either, I was hoping to go through one of two local CU's I'm a member of, hoping they offer something ideal.

http://ficoforums.myfico.com/t5/Bankruptcy/How-to-join-NCFU-and-rebuild-as-a-civilian-the-right-way/...

Ch 7 Discharge May 2015
Discover/Target/NFCU CLOC/NFCU Cash Rewards/NFCU Platinum/PenFed Power Cash Rewards/PenFed Pathfinder AMEX/Citi Costco Visa - $96k total revolving
EQ/EX/TU: FICO 8's November 2019: 696/679/668, 14% utilization, AZE2 (w/ those 2 cards reporting 30% util), INQ's: 4/2/1
Message 5 of 5
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