Greater likelihood of approval with NFCU using their checking account?

[funky1]

I'm looking at buying a early to mid 2000's Tahoe/Yukon. Yes I know gas mileage sucks but I don't care. Of all the vehicles I've owned my favorites have been 1/2 ton trucks and SUV's. This model with a clean title and under 100k miles lists in my region for around $10,000 - $14000 or so. I'm going to have around 7 or 8k to put down on it but I want to finance the rest. I was approved at cap 1 for up to $30,000 a couple months back but the interest rate was insane. Even so since I'd only be financing around 3-5k I'd be willing to go for it. However it doesn't look like cap 1 will finance anything that old, with over 70,000 miles and you have to finance at least $7,500 to get the loan. So cap 1 is out.

 

I called NFCU to find out their thoughts. They apparently finance up to 125% of the vehicle value, they use NADA. The rep I spoke to said although their loan calculator on the website only goes down to $5,000 they have and would finance a lesser amount and they'll finance up to I think she said 20 year old cars. So it seems like NFCU is where I should apply.

 

I'm nervous though because despite everyone giving them praise, I was denied 2 times for their nRewards card. That said, since I've opened up my checking/savings with them I haven't really used it at all. I think my checking has $8 in it and savings has $5. Today at work I switched my direct deposit to NFCU and I'm hoping after they see I'm not a bum and I start using their banking products they'd be more apt to give me a loan.

 

Something interesting was when I asked the rep if putting a large downpayment down on the vehicle improves my chances of getting the loan and she said no. I was surprised. It would make sense to me that if someone puts 8 grand down on a car worth 12 grand and finances the other 4 grand that the lender would be falling over themselves to give you a loan because if they ever had to repossess it, it would likely be worth considerably more than what's owed on the note. Seems like it lessens the risk considerably?

 

Anyway, I'll probably app in a month or two but I'd like to know if you guys know of any fall back options?

Edited May 15, 2013 by funky1

[MarvBear]

I don't do direct loans. Only indirect. If not from a dealer, then maybe someone else can chime in.

 

My only solution would be a small personal loan for the unpaid balance from a lender you feel comfortable with.

[hrguy]

They do say that account usage counts for something with navy. If you can't get it eventually, not sure where else you could go besides whatever the dealer has that they offer up for financing. Most auto lenders have a minimum finance amount, its usually over 7K. Stop laying all your cards on the table in your correspondences in this scenario as it may get you shot down since you want to finance so lesser of an amount. If you agree to the terms of an offer, take it as MOST finance contracts do not have a pre-payment clause, but be sure to ask. Once the loan is funded, THEN put the 8K in with the first payment.

 

Hopefully you get it with Navy - they are rare in that they will finance so less and so old, most CU's will not finance cars over 7 model years old, and for less than 7.5K so it looks like you may need to sweeten Navy up to get it. In the meantime, where ever you have the 8K for the down payment, put that into the Navy account while your direct deposit is pending.

[hrguy]

FWIW - I too did not get approved for any cards with Navy until I started actually using the account.

[funky1]

Thanks guys!

 

 

I had thought about doing the full or near full financing then make a huge payment trick with Capital One but I'm not sure if I read it here or somewhere else that the way Capital One structures their loans all the interest is calculated up front so there is essentially no benefit to an early payoff. Not sure if that's true or not.