App for Marv (+ More questions, that will help me)

[centex]

On 4/18/2021 at 6:34 AM, Killbadcredit said:

Thanks Marv, so if suv has 37 K miles and KBB suggested trade in value is 29K to 31K.

 

So it’s safe to say you don’t feel comfortable giving me a fair trade in for my SUV?

 

Just share your honest opinion how much I should look for, as far as fair trade in value for this SUV?

While online guides (like KBB or Edmunds or even NADA BlackBook) give SOME reference, they are stale information that may not even be germane to YOUR locale despite their request for a ZIP code.  Guides are ALSO just that...a guide.  They aren't binding in any capacity.  It is no different than when the insurance people go to value a car on a total loss...variables can put a specific example above or below the typical range. 

 

Using the total loss example, I had a spec'ed vehicle some years back that was totaled at 13 years but with only 130K miles (on an engine that was routinely going more than 300K miles with proper maintenance).  Insurance tried to use comps that had twice the mileage and did not look like something fresh off the showroom floor (ie. not used as a work truck).  The closest in specs and condition *I* could find was on the upper East Coast and it was identical in color and options save for it being a dually while mine was SRW.  There was a gap of something like $6-7K between that one and what I was being offered, but it was not a comp for my area precisely because of distance, although I did contemplate going to buy it as a replacement.  It did provide some leverage, but the reality is that books do not account for the examples that are outside the norm.

 

My F-Type is in a similar category...there are not many that cross the blocks, and of those, very few will be manual.  The three-pedals make it something that some service-writers may NEVER even see come through their dealership because of their scarcity.  To some., the manual is a value-add but to many, it is a value-subtract.  As such, KBB/Edmunds are useless as far as assessing valuation.  A dealer that knows they have a prospective buyer lined up may offer more while someone that believes it might sit for a while and then have to go to auction in order to be removed from inventory would offer far less.   

[CTSoxFan]

Centex basically hit it on the head.  As put to me once, KBB and others don't buy and sell cars, so their figures are essentially meaningless.  It is no different than using Zillow, Redfin or any other of the home value estimators.  You have to look at real sales data, and for used cars, that is the Mannheim auction data (which is not publicly available).  I have found that if you want the closest estimate using a source such as KBB is to take the fair condition trade number (the lowest value they show).  Most dealerships are going to send the cars they trade to the auction, and they aren't going to pay more for it than they think they'll get at the auction (unless they are making it back on the sale of the new car, but either way they aren't going to lose).  Places like Carmax and Carvana are going to try to sell your car, so they typically can offer a bit more as that is their business.

 

[Killbadcredit]

Thanks guys, I appreciate all the knowledge.

 

I tried to get a new truck even with trade in, and nothing.

 

The dealers I went to even we’re offering me the pay off amount, and no financing for me.

 

They just ran my credit.

[cv91915]

15 hours ago, Killbadcredit said:

Thanks guys, I appreciate all the knowledge.

 

I tried to get a new truck even with trade in, and nothing.

 

The dealers I went to even we’re offering me the pay off amount, and no financing for me.

 

They just ran my credit.

 

Think of the several thousand dollars this saved you as compensation for a little inconvenience on future road trips.   

[Killbadcredit]

I’ll take this inquiries over anything crap load of interest  tho.

[Killbadcredit]

Hey Marv, I want to thank you. My scores have been improving. 
 

I had another question, since all you’ve told me is true.

 

My old inquiries have been getting deleted. 
 

Experian says my Fico Auto Score  8 is at 681 right now.

 

Teach us about money down, if I get my score up to at least 740, and want to get a 44K truck for example.

 

Monthly Income is $4,704. Have check stubs to prove that. Home is paid. 
 

Just regular expenses like electricity, water, insurance, credit card debt is getting paid off.

 

With a 740 Fico Auto Score 8, and 44K truck, will the finance company require a down payment, if so how much, give or take?

 

Like I said Durango is just too small for us, need something bigger.

 

Thanks Marv, your knowledge is really helping me make better decisions.

 

Anything else you need to know let me know. 

[MarvBear]

The simplest answer is the more down-payment you make in cash, the lower your monthly note will be.  I put close to 50% as a down payment on my last vehicle purchase in 2014.

[Killbadcredit]

Ok got it, thanks again. I’ll line something up. Your time and knowledge have been excellent.

[Killbadcredit]

Hey Marv, thanks for all the help but I had another question.

 

Can you explain the best way to find financing out of the dealership to avoid being shopped by lenders?

 

I rather finance with a credit union, so would I just call a credit union and fill out an app for certain amount?

 

Lets say, I find a truck I like. Then I negotiated the price then I financed with a credit union towards the end of the deal?

 

 

[MarvBear]

4 hours ago, Killbadcredit said:

Can you explain the best way to find financing out of the dealership to avoid being shopped by lenders?

Why do you care now with all the inquiries you have?

[Killbadcredit]

Marv, I messed up my credit and I take responsibility. I’ve lived with bad credit for the last 7 years, struggling to even get approved for good rates. I’ve learned to be more responsible and if I can avoid inquiries at all, I’m all for it. 
 

I have goals to have great credit and keep it that way.

 

For example Chrysler Capital gave me a 20% interest rate even with a large down payment, because my score was bad.

Edited April 26, 2021 by Killbadcredit

[MarvBear]

Well, go to a dealership and strike a deal on the numbers, and then go to as many credit unions as you deem appropriate with a copy of the bill of sale along with a copy of the window sticker.  That way you oversee your destiny.  You can accept or decline their terms/conditions as you wish.

[Killbadcredit]

Thanks this is the answer I’m looking for. I thought you had to apply online first and then see what they approved you for.

Good to know, thanks Marv.

[Killbadcredit]

Good morning, Marv, how you doing? Well, here with another question.
Wife and I are talking of selling Durango to Carvanna and just use my beat around Jeep while we save a down payment.

 

No use keeping Durango if it’s depreciating in value.

 

So if Carvanna pays off our Durango and we use that monthly payment to save up for a new vehicle, is our Fico score going to up?

 

Or it doesn’t really matter since it’s not revolving credit? Thoughts? 
 

 

Edited May 3, 2021 by Killbadcredit

[MarvBear]

I don't know.   Probably FICO will take a small hit with the loan pay off but shouldn't last long or be too bad.

[centex]

On 4/26/2021 at 8:02 AM, Killbadcredit said:

Thanks this is the answer I’m looking for. I thought you had to apply online first and then see what they approved you for.

Good to know, thanks Marv.

The prudent shopper WILL have financing approved in a general range if they are going their own route.  Many credit unions will let you know the cap and provide you with an auto draft that can then be used once you find a specific vehicle and provide them with the purchase order.  However, you won't want to tip your hand about that to the dealership while beginning the negotiations as most are hoping to make some sort of commission (for lack of a better term) from getting you set up with the captive. 

 

By example, I had a particular make and model that I was looking at and knew within a few thousand what I would be paying if I made the deal.  I was approved for an amount that covered that amount and then some.  However, if I don't make a purchase, then it just fades away and all I have lost is the price of the one inquiry.  Auto draft paperwork was overnighted to me following the approval though...