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cten07

Refinancing ?'s

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Car is 2018 Toyota Corolla LE 18,600 miles, Loan Balance 21.5K, int rate 13.4, payment is 484/mo. Had negative roll at purchase of 4,500 which is why I currently owe 21.5K on it. 

 

Credit score notwithstanding, at what point based on LTV would I be able to refinance, if ever, without making extra principal payments. 

 

I am aware of 120% LTV possibility, but 120% of retail or trade value for refinance purposes? 

 

Thanks. 

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2 hours ago, cten07 said:

am aware of 120% LTV possibility, but 120% of retail or trade value for refinance purposes? 

Depends on the lender.  CU will use NADA retail and calculate their maximum advance from that.  Banks generally use NADA clean wholesale to calculate their maximum advance.  Both ways come out pretty much to the same number based on their guideline positions.

 

My answer would be 100% so either way you should be covered.  And that is just a SWAG.

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If it were me, I would be looking to refi that puppy ASAP to get away from that insane APR.  And then once the loan is re-written with more reasonable rates, immediately begin tossing far more than the $500 per month at it to get rid of it inside of three years. 

 

Even if you got stuck with it at 5%, tossing about $650 a month at it clears the note inside of three years.  To do the same at the current rate will mean putting roughly $725 per month towards the note.  I didn't run the specific numbers, so figure +/- $25 each way.  

 

Regardless of ability to re-fi, the sooner you get a lot of extra principal payments thrown at it, the sooner you cease to be upside down.  And hopefully you have also taken heed of the wisdom of never again rolling negative equity into a note...you ONLY help the lender when you do that. 

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One way to lower your payment - since the balance is what it is - is to do an RBF loan through a lender like fiwize.com.  Not sure how deep on the credit spectrum they'll go but it can drastically reduce your monthly nut, especially for cars that hold on to their value.

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12 hours ago, carqwik said:

One way to lower your payment - since the balance is what it is - is to do an RBF loan through a lender like fiwize.com.  Not sure how deep on the credit spectrum they'll go but it can drastically reduce your monthly nut, especially for cars that hold on to their value.

Just looked at the site.  Looks like there are several additional ways to get screwed financially compared to just overpaying for a car you can't afford and then compounding the problem with a stupid interest rate. 

 

BUT LOWER PAYMENTS!!!!!!!!!  :wave: 

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15 hours ago, carqwik said:

One way to lower your payment - since the balance is what it is - is to do an RBF loan through a lender like fiwize.com.  Not sure how deep on the credit spectrum they'll go but it can drastically reduce your monthly nut, especially for cars that hold on to their value.

shill much?

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On 1/9/2019 at 12:35 PM, centex said:

If it were me, I would be looking to refi that puppy ASAP to get away from that insane APR.  And then once the loan is re-written with more reasonable rates, immediately begin tossing far more than the $500 per month at it to get rid of it inside of three years. 

 

Even if you got stuck with it at 5%, tossing about $650 a month at it clears the note inside of three years.  To do the same at the current rate will mean putting roughly $725 per month towards the note.  I didn't run the specific numbers, so figure +/- $25 each way.  

 

Regardless of ability to re-fi, the sooner you get a lot of extra principal payments thrown at it, the sooner you cease to be upside down.  And hopefully you have also taken heed of the wisdom of never again rolling negative equity into a note...you ONLY help the lender when you do that. 

If you could reduce your int rate from 13.4 to 8.1 by doing another negative equity deal, would you? I could purchase a 2018 Jeep Renegade or other FCA product and get 8.10 int rate despite a crazy neg equity roll in. The Corolla may not refinanciable ever unless I pay extra on it per month,. 

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Even with a lower interest rate, you would still have a ton of negative equity in the new car, perhaps even more, making that car (almost) impossible to refinance.  

 

If it were me, I would throw as much as I can at the Corolla, and also look at DCU for possible finance.  Not sure what LTV they go to, but they seem to have helped people on this board. 

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1 hour ago, cten07 said:

If you could reduce your int rate from 13.4 to 8.1 by doing another negative equity deal, would you? I could purchase a 2018 Jeep Renegade or other FCA product and get 8.10 int rate despite a crazy neg equity roll in. The Corolla may not refinanciable ever unless I pay extra on it per month,. 

Would I?  No.  The world is full of people who DID which is why we see so many stories here on CB about people who are upside down by crazy amounts.  An 8.1% deal is not that good of a deal and certainly not one that is worth rolling over even more negative equity.

 

In all of my years, I never did a note where I rolled negative equity into a loan...but I am also not a typical buyer given that I tend to buy and hold long after the note has been paid off. 

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1 hour ago, cten07 said:

If you could reduce your int rate from 13.4 to 8.1 by doing another negative equity deal, would you? I could purchase a 2018 Jeep Renegade or other FCA product and get 8.10 int rate despite a crazy neg equity roll in. The Corolla may not refinanciable ever unless I pay extra on it per month,. 

First, you'll lose money on your trade in.  

 

Next, the purchase price of the new vehicle will include at least a reasonable profit for the dealer.  

 

After that, the depreciation on a new Jeep Renegade will be punishing and will dramatically outpace the depreciation on a used Corolla.  

 

Together this would cost you thousands and thousands* of dollars.  Without even attempting the math it's obvious that this is not a way out.

 

Make some lifestyle/budget adjustments and burn down the current balance as fast as you can, and refi when possible.

 

 

 

 

 

 

 

 

 

* and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands and thousands 

 

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3 hours ago, MarvBear said:

Whoa,  you gotta lot of negative equity.

 

manheim.thumb.jpg.5b29cf57213608e65e315485078cd471.jpg

So much for "great" Toyota resale value. 

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4 hours ago, Glacier said:

Even with a lower interest rate, you would still have a ton of negative equity in the new car, perhaps even more, making that car (almost) impossible to refinance.  

 

If it were me, I would throw as much as I can at the Corolla, and also look at DCU for possible finance.  Not sure what LTV they go to, but they seem to have helped people on this board. 

I just contacted DCU and they told me 120% NADA retail value which is not doable at the moment but would be towards year end. 

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2 hours ago, cten07 said:

So much for "great" Toyota resale value. 

The closer to a fleetmobile something is, the greater the rate of value plummeting...and a Corolla shows up in too many rental fleets and is pimped by too many Toyota dealerships on leases, which means the market is constantly flooded with used versions of the vehicle. 

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6 hours ago, MarvBear said:

Whoa,  you gotta lot of negative equity.

 

manheim.thumb.jpg.5b29cf57213608e65e315485078cd471.jpg

 

Any chance of getting NADA clean trade which is 14,450? 

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What I just showed you is an auction list for what a dealer can purchase a similar auto for.   The vehicle would normally retail for a higher figure than represented above.

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3 hours ago, MarvBear said:

 

3 hours ago, cv91915 said:

OVE and MMR?  I smell Manheim.

What I just showed you is an auction list for what a dealer can purchase a similar auto for.   The vehicle would normally retail for a higher figure than represented above.

Thank you for the info

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7 hours ago, cten07 said:

So much for "great" Toyota resale value. 

compared to what? a dodge? lol

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When I saw the nested quotes I got so excited that I peed a little!

 

It used to be so much easier to hold a conversation...

 

wg0CVD4.jpg

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13.4% ... ouch.  OK....so if you can afford it, throw a chunk on a 0% card offer, refi the less than LTV on the car note with DCU or whichever best rate lender you find.  Works best if 720+ range for general rule of thumb.

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Hopefully my back can afford to keep this car as the seats are not very comfortable.  I am starting to think if I am going to be buried upside down in a vehicle for a long long time I may as well be more comfortable doing so. 

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I am able to refi the car now with CapOne @9.86 going from 13.4. I guess the LTV works for them.  My back has been fine in the car lately so I will definitely keep it and just refi it again when possible. I have 60 more payments to go and I am doing a 60mo refi and not a 72mo one. Makes me feel better about purchasing a Toyota

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good luck, if possible can you shorten the term? getting it PIF asap is important for long term financial stability.

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