Negative Equity Auto Loan Refi?

Anonymous · ‎05-02-2017

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.

medicgrrl · ‎05-02-2017

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

KJT · ‎05-02-2017

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 8/9 Scores EQ 750/812 EX 722/742 TU 725/715 AMEX BCE $20K, Delta AMEX $10k, AMEX Everyday $5K, AMEX Gold NPSL, AMEX Platinum NPSL, AMEX Marriott Bonvoy $9.3K, AMEX Hilton Aspire $9.3K, Apple Mastercard $9K, BOA Unlimited Custom Cash Visa $5K, BOA Travel Rewards Visa $5K, BBT Travel Reward Visa $7.5K, BBT Brightstar Visa $7.5K, Target $5k, Banana Republic $7k, CITI Custom Cash $3K, NFCU eSignature Visa $40k, NFCU CLOC $15k, NFCU AMEX Rewards $25k, NFCU Classic Visa Signature Flagship Reward $15k, Comendity NFL $25.4k, PayPal $10k, Capital 1 Wal-Mart $7k, Amazon Prime $10k, CITI-Double Cash $3k, PENFED Power Cash Reward 20k, PENFED AMEX $20K, PENFED Platinum $10k, PENFED Credit Union CLOC 1.5k, PENFED New Car Loan 6% APR 33k 72 MTHS-Paid Off, PENFED Signature Loan 19k 48 MTHS, Nordstrom 15K; Raymour $5.3, USAA AMEX Reward $14.5K, USSA Visa Reward $9.5K, Target $5K, Infiniti Q50 2019 $44K-1.9% APR 72 months-Paid Off. Total CC Limits $346K.

Anonymous · ‎05-02-2017

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.

Anonymous · ‎05-02-2017

@Anonymous 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/td-p/4642280