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luckydriver

would a lender ever refi its own IIB car (or can i be financed)

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crazy question but just curious. in 2014 IIB my 2014 car. from all accounts on this forum car loans are one of the easiest to get after BK. so here we are 4 years later. 

 

i'd love to lower the 5.5 rate i got at 530 a month and i think the balance is around 16K now and it was 7 year loan. i  know its a sin to do this with discharged debt but as i just put 3800 into the transmission. i wont be getting rid of the car anytime soon even though it has 147K on it. i usually take my cars up to 300K at least. 

 

so just wondering if citizens would possibly refi me or if a CUs may look at me or thats just too high mileage. psecu fico was 649 last month but they dont loan until after 5 years out of BK.  it's a very high mileage car and thats why i was hoping the initial bank may want to work with me to help me stay in the car so to speak. 

 

or just a crazy idea?

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Is it a 4x4 diesel powered vehicle? Banks and CUs normally make exceptions for vehicles known to have an extraordinary resale and lifespan.

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nope plain ole luxury family american sedan. main goal is getting monthly payment down and i really would love to do it

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Personally, I doubt your chances.  High mileage and a 5-year-old vehicle do not make an attractive collateral for a lender.

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so no leverage with the current lender either i assume? i guess they already wrote it off so any money now is gravy for them?

 

just would be 'nice' of them to help me out. but i guess no benefit making this basically an 'affirmation' now at this point. 

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Is your BK discharged?

 

Sent from my SM-N950U using Tapatalk

 

 

 

 

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And you still kept the car and continued to make payments? If so the bank would have no reason to lower your apr and refinance since they already have the vehicle collateralized. I'm not trying to be rude to you just realistic on what you might expect.

Sent from my SM-N950U using Tapatalk
 

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i knew it was a longshot and i wish i had someway to make them see the light that it would help me but they dont care about you as a person. just a number lol

 

cap 1 did prequalify me shockingly. 110 bucks less a month a of course more interest in the end but i may snag it. 

 

only question i dont know answer to is does the gap insurance cover me from the other loan or is it tied to that loan only? i know now even though i'm under water i can walk away with zero negatives on the credit report. but if i get a new loan then something happens i know that could be tricky. 

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Don’t forget tens the term and pay more interest. It’s not a smart move in the long run. Just work to pay it off ASAP. Good Luck. 7 years for a car is already a long time.

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2 hours ago, tiggerlgh said:

Don’t forget tens the term and pay more interest. It’s not a smart move in the long run. Just work to pay it off ASAP. Good Luck. 7 years for a car is already a long time.

As a general guideline if you can't afford the payments on a 36-month loan you're buying too much car for your budget.

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31 minutes ago, cv91915 said:

As a general guideline if you can't afford the payments on a 36-month loan you're buying too much car for your budget.

^^^^ good point ^^^^

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You are right now in the favorable position of being able to simply walk away if the car has another major mechanical problem.  No way you should get into a binding contract.

 

Also if you were to refinance and extend the term, even at a lower APR, you are likely to end up with a higher total of payments.

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As a general guideline if you can't afford the payments on a 36-month loan you're buying too much car for your budget.

I agree! I was trying to be nice to OP and not have them make their 7 year loan a 10. They are already passed paying it off in 3 years.

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12 hours ago, cv91915 said:

As a general guideline if you can't afford the payments on a 36-month loan you're buying too much car for your budget.

i'm 4 years past that when i signed up for a 7 year :)  plus i have a decrease in my expenses in 2 years so then can easily pay down/off. and i put 3800 into the trans and gotta pay that off regardless. i cannot see "not" putting money into the car. i cannot walk away from that 3800 payment as its sunk cost which must be paid off. to get another car and then pay this 3800 still seems foolish to me. what do you think?

 

heck in 2 years i can afford a porsche but i gotta get though the next 2 years somehow which is the goal of reducing my monthly payment now without regard to interest. the allure of walking away is literally the only thing even keeping me hesitating from pulling the trigger now. another thing to consider is can i even get a car loan if i walk away with this today? dont they ask questions like that when you go to refi. did you ever have a car repoed? or will no further negativity show up on my CR ever again no matter what i do with this car and it wont affect future lending if i walk away today?

 

see i dont think anyone would lend me money for another car for the next 2 years but i guess only way to know is to apply for a loan. my discover FICO is 603 

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10 hours ago, tiggerlgh said:

I agree! I was trying to be nice to OP and not have them make their 7 year loan a 10. They are already passed paying it off in 3 years.

 

to be clear it would be 7 to 8, not 10

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to be clear it would be 7 to 8, not 10

Still way too long. You are 4 years into the loan. So the loan you are looking at has a 4 year term? I still wouldn’t do it.

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13 hours ago, cv91915 said:

As a general guideline if you can't afford the payments on a 36-month loan you're buying too much car for your budget.

I am aware that this doesn't help the OP's immediate situation.  That's why I started my comments with "As a general guideline."

 

The audience for any thread on a public board is beyond the OP and the people who post in the thread.  

 

Others reading this might think, "I was considering a seven-year loan on my next car but it looks like that's probably too long.  What's the right loan term to minimize the chances of these events happening to me?"

 

 

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Posted (edited)

sometimes you gotta do things against the numbers . in 2000 i had a 7 year loan and i had the car for 14 years and over 300K. and that was on a 5 yr old car. i never had a new car before. but due to job circumstances i drive 33K a year and so i needed new to start out with. i run cars into the ground and maintain them. value of a car has zero meaning to me and to be honest i dont understand why people want their car to keep value or worry about depreciation. you buy a car cause you like it. and you should keep it. not trade every 3 years. to me thats silly. it's a commodity to be used up. (unless its an old split rear window vette)

 

just as silly as people think i am for having 7 year payments and keeping a car until it literally falls apart. its all about perspective. i have 147 on the car now and i just need it to last another 200K. then i'm done. retired. so 6 more years on this car and i dont mind paying a bit more

 

plus i dont forget, with my decrease in expenses in 2020 i can basically pay it off right away if i wanted to. this is all about less in pymts for the next 2 years. thats it . period. only downfall is the gap insurance thing as far as i can see. 

 

unless someone can tell me i can get a new car loan with my 603 score for sure. even then theres that 3800 in the trans which must be paid back regardless of what i do . so to me it doesnt make sense to ever walk away with the car, not that the decision really would be mine in that circumstance. 

 

also the real purpose of this is to discover pitfalls

 

other than interest/gap insurance/breakdown are there any other pitfalls i'm missing

Edited by luckydriver

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7 minutes ago, luckydriver said:

sometimes you gotta do things against the numbers . in 2000 i had a 7 year loan and i had the car for 14 years and over 300K. and that was on a 5 yr old car. i never had a new car before. but due to job circumstances i drive 33K a year and so i needed new to start out with. i run cars into the ground and maintain them. value of a car has zero meaning to me and to be honest i dont understand why people want their car to keep value or worry about depreciation. you buy a car cause you like it. and you should keep it. not trade every 3 years. to me thats silly. it's a commodity to be used up. (unless its an old split rear window vette)

 

just as silly as people think i am for having 7 year payments and keeping a car until it literally falls apart. its all about perspective. i have 147 on the car now and i just need it to last another 200K. then i'm done. retired. so 6 more years on this car and i dont mind paying a bit more

 

plus i dont forget, with my decrease in expenses in 2020 i can basically pay it off right away if i wanted to. this is all about less in pymts for the next 2 years. thats it . period. only downfall is the gap insurance thing as far as i can see. 

 

unless someone can tell me i can get a new car loan with my 603 score for sure. even then theres that 3800 in the trans which must be paid back regardless of what i do . so to me it doesnt make sense to ever walk away with the car, not that the decision really would be mine in that circumstance. 

 

I'm not 100% sure if you misunderstood part of my post or these are mainly fresh comments.  

 

But... just in case... I wasn't suggesting that financing with a three-year loan meant that I was advocating trading cars every three years.  To the contrary.  In fact, I'm not even advocating three-year loans.  

 

I'd much rather see someone putting $500 a month into savings for 36 or 48 or 60 months and then paying cash for an $18,000 or a $24,000 or a $30,000 car.

 

I disagree that you buy a car because you like it.  You should buy a car because you need one, and you should select one that you can comfortably afford (pay cash, or finance with a significant down payment and a loan term no longer than 36 months).  If that's not possible, err on the side of a smaller down payment and not a longer term.

 

This is the wrong thread to make an impassioned argument for the virtues of going against the numbers.

 

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Posted (edited)

do i get a refund of the unused gap coverage i paid for on the 1st loan? 

 

alternatively. does cap one sell gap or would anyone sell for used car like this or just doesnt happen?

Edited by luckydriver

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It is an american car with 150k miles on it.  The $3,800 is gone - write it off and take it out of the equation.

 

I can see the car making it to 200k miles - maybe.  Anything past that is borrowed time.  It is not a matter of if but when.  Are you comfortable making payments and fixing it on a regular basis?

 

I would absolutely not be on the hook for a 4-5 year old car when I didn't have to be.   

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the other question remains. will anyone give me a new car loan with my low 603 score because the option to fix or not may not even be in my hands. if i cannot get another car loan then i'm asking a moot question as ill be forced to fix regardless for at least the next 2 years until i get my hands on that other money. so id say yes, the answer is for at least 2 years i have to fix the car regardless. 

 

in the old days when i didnt drive much id buy a car with 100K on and go from there but with 33K a year driven now, i cannot start off used behind the 8 ball with an old unknown commodity such as that. at least i know i have 100K warranty on this transmission now so thats 3 years  on that :) i'm optimistic

 

and what basis do you have for 200K on my car? ive never had any car last for that little amount of time when i got rid of it. my 1987 car was 308K when i put in a transmission. 1995 one was 230K for the transmission. this one was just premature sadly. 

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Posted (edited)

To go back to your main question, if you are only considering auto loans and you aren't finding success, you can cast a wider net.

 

Some other ideas:

 

- Get an unsecured loan from Lightstream or one of the P2P lenders like Lending Club or Prosper (with P2Ps it'll cost you an origination fee PLUS the ongoing interest expenses);

 

- Do a 0% 12+ month balance transfer to a new or existing credit card and transfer it again to another 0% offer before the term expires on the first BT (depending on the offer there may be a ~3% BT fee with every transfer);

 

- Transfer the balance to a credit union credit card with a (relatively) low interest rate.

 

None of these may be your lowest-cost option by the time you've repaid the entire balance, but that's not your priority.  

 

These may not even all be possibilities depending on your credit and income qualifications... but if you need to create some breathing room and are okay with paying a premium for the privilege, there are some other creative paths forward to consider.

 

Edited by cv91915

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