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Looking at getting out from under my mid life crisis divorce Mustang GT Performance Pack car for something larger and more fuel efficient, it has 32,000 miles and I’m probably 2k upside down on it. The fiancé and I have looked and found many SUVs around 40k that fit our needs. Capitalone Pre-qualified me at 5.99% for 35k with 1000 down. Trying to avoid going to a dealer and having hard pulls. Carmax has what we are looking for but I don’t want to burn the inquiry if it’s pointless. FAKO scores are all around 690 to 695.

 

How long have you been on file with the CRA?s? 16 years 

Previous Automotive Credit History:
Do you have an open auto loan? 1loan 


Will this loan be a trade-in? Yes


Number of late pays within the last 12 months on the currently open loan? Never late


Number of late pays within the last 13-24 months on the currently open loan? 1
 

Current open auto loan is financed with? Navy

Current open auto loan payment is? 677


Will this loan be a trade-in? Yes


Estimated amount you may be upside down in this vehicle? 2400

Rate your payment history on this open auto loan from 9

 

I have read and understand the original pinned "No Credit Check Required" topic. Yes

Revolving Credit History: 
Total number of revolving accounts? 2, 0 utilization

Your Information:
How long at residence? 2 year
Rent/Homeowner/Live with relative? Yes

How long at current job? 13 years


Total Provable MONTHLY GROSSINCOME? 
$7300


Provable via computerized paystub or what method? Paystub

Your Downpayment in CASH: 2k

Does any credit repository contain any Public Record? Yes mall 3

Is so, please describe. CH7 from 2020

Does any credit repository contain any Collection Account(s) None

New or Used Vehicle you are considering; please describe: Used / New SUV or Tesla around 40k

Your creditworthiness on a scale of 1-10 with 10 being the best: 7

 

 

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On 3/18/2021 at 11:13 AM, ihatecollections said:

Current open auto loan payment is? 677

 

what................has that thing got a gold brick up the tailpipe?????????????   How positive are you about your upside down position?

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Posted (edited)
18 hours ago, MarvBear said:

what................has that thing got a gold brick up the tailpipe?????????????   How positive are you about your upside down position?

$677 per month @ 4.49 apr. it was originally a 44k optioned car with tax and title and 2k negative equity rolled into this loan. It’s been appraised between 1000 to 2200 below the 14 day payoff. 

Edited by ihatecollections
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21 hours ago, MarvBear said:

How positive are you about your upside down position?

 

👆

 

@ihatecollections, have you gotten quotes from Carvana, Vroom, Shift et al?

 

Used car market is insane right now.  I just sold a 2011 Infiniti (private party sale) that I bought new and got ~30% of my money back.

 

 

Edited by cv91915
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3 hours ago, MarvBear said:

You should be fine as long as your deal fits an approving lenders' advance qualifications.

Thanks. We are actually looking at cheaper vehicles around 32k. I have the Capital One offer to fall back on. So I have the dealer we are going to use just run my social and see if he can beat the capital one offer? Their offer said to just tell them to run Capital One.

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I don't think I've ever lost a deal to capital one with all else being the same.  Probably what will happen is that another lender, they submit to will approve with better terms. Please don't cry about inquiries.

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On 3/20/2021 at 2:10 PM, MarvBear said:

I don't think I've ever lost a deal to capital one with all else being the same.  Probably what will happen is that another lender, they submit to will approve with better terms. Please don't cry about inquiries.

What would you say is a purchase limit for someone with my scores? Income is 7300 per month and all I have is my current $667 per month car payment. All cards are 0 balance but have only been open 7 months.

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From my perspective the purchase limit and the approval limit are 2 different things.   Your approval limit should be expressed as a % of the approving lender's valuation criteria.  Most credit analysts have an approval limit of 50K, higher would need to be referred up the chain of command.

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Posted (edited)
5 hours ago, MarvBear said:

From my perspective the purchase limit and the approval limit are 2 different things.   Your approval limit should be expressed as a % of the approving lender's valuation criteria.  Most credit analysts have an approval limit of 50K, higher would need to be referred up the chain of command.

Is most of this automated through the dealer app and if somethings close the Finance office makes calls to lenders? I ask because the dealer has new cars for 4K more. Looking at 44 to 46k with 2k down. Do they need to know how much I can put down up front? I’ve had it where I tell them what I have and it comes back as you can do it with zero down and other times they say you need x amount down .

 

Would me selling my current car today Carmax today and buying at another dealership hurt the finance offer or do I just need to show proof of sale so it doesn’t look like I’m trying to get a second car? The dealers we have seen offered 3k less than Carmax did for trade in.

Edited by ihatecollections
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I send a fully structured loan application to a prospective lender,  It is as detailed as the actual contract.   If I don't get an approval for exactly what I submitted, then I will rehash.

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3 hours ago, MarvBear said:

I send a fully structured loan application to a prospective lender,  It is as detailed as the actual contract.   If I don't get an approval for exactly what I submitted, then I will rehash.

Does it matter if I sell my car to someone else?

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On 3/20/2021 at 1:18 PM, MarvBear said:

You should be fine as long as your deal fits an approving lenders' advance qualifications.

Going in tomorrow to hopefully finalize the deal on a manager demo car that is essentially new. It’s a BMW X3 with 5500 miles on it. MSRP new is 51999 and they had it listed at 41999. Should be looking at financing 41500 plus tax and title with the trade in being for my payoff. I have 2k cash in hand for a down payment and more in savings but I’d prefer to no touch my savings.
 

Do you think a component finance guy can make this work? I’m 1 year post Chapter 7 tomorrow. I’ve have 6 closed current paid on time auto loans still on my reports and they were with banks like USAA, Navy, Ally, and Capital One. Although USAA, Navy, and Capital One were IIB for credit cards during my divorce.

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On 3/24/2021 at 4:38 PM, MarvBear said:

Well don't finance you taxes,tag,tile fees.  Pay those in cash.  And buy GAP on  BMW.

 

Agree on purchasing the GAP, however you should check with your auto insurance as they may offer the coverage at a lower price than the dealer.  Also know that you can cancel most GAP policies a couple of years into the contract and get a pro-rated refund (no need to have the coverage once the value of the car is at or above the loan balance). 

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Ended up going to a different dealer. The car is on its way to the dealer this week and they put our name on it to hold the allotment. Total price is 39950 plus dealer admin fees and tax title and license of 2178 for a total of 4200. Was hoping to put down a payment to cover the 2178 in fees. MSRP on the suv is 45970. 
 

Im nervous about the financing portion as I fill out the application at home, I still feel like 684 and 695 FAKOs and an auto score of 680 ish. They are trying to push me towards no incentives and taking 0 percent financing option but I doubt I’ll qualify for that.  I told them I’d like to only put down tax title and dealer fees as a cash down payment.


Carvana is picking up my current car for an outrageous deal so I can pay it off and put some cash in my pocket. I’m assuming they will tell me if I need to put more down etc.

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19 hours ago, ihatecollections said:

Ended up going to a different dealer. The car is on its way to the dealer this week and they put our name on it to hold the allotment. Total price is 39950 plus dealer admin fees and tax title and license of 2178 for a total of 4200. Was hoping to put down a payment to cover the 2178 in fees. MSRP on the suv is 45970. 
 

Im nervous about the financing portion as I fill out the application at home, I still feel like 684 and 695 FAKOs and an auto score of 680 ish. They are trying to push me towards no incentives and taking 0 percent financing option but I doubt I’ll qualify for that.  I told them I’d like to only put down tax title and dealer fees as a cash down payment.


Carvana is picking up my current car for an outrageous deal so I can pay it off and put some cash in my pocket. I’m assuming they will tell me if I need to put more down etc.

 

You may qualify for it, in your case I would let the dealer see what he can do.  Once you know what rate you are approved for and what incentives are available do the math.  By my quick calculation, if you finance $39,950 for 60 months @ 5.99% you have with C1 you will be paying ~$6,400 in interest costs over the term of the loan.  So that is the hurdle they would need to clear in incentive cash to make it smarter to take the cash vs. a 0% rate.  Every 1% that the rate is reduced from the 5.99% will save you roughly $1000-$1200 in total interest expenses (it is a diminishing return as you get closer to 0%).  So now you can easily compare the rate change impact against the cash incentive.

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Posted (edited)
4 hours ago, CTSoxFan said:

 

You may qualify for it, in your case I would let the dealer see what he can do.  Once you know what rate you are approved for and what incentives are available do the math.  By my quick calculation, if you finance $39,950 for 60 months @ 5.99% you have with C1 you will be paying ~$6,400 in interest costs over the term of the loan.  So that is the hurdle they would need to clear in incentive cash to make it smarter to take the cash vs. a 0% rate.  Every 1% that the rate is reduced from the 5.99% will save you roughly $1000-$1200 in total interest expenses (it is a diminishing return as you get closer to 0%).  So now you can easily compare the rate change impact against the cash incentive.

Still haven’t heard back yet but a credit report were pulled first thing this morning when they opened. Unfortunately they pulled only Experian which is my lowest score... Carvana is about 2 hours away and will be writing me a check for my current car and paying it off so I’ll have another grand to put down.  I’m sure someone will pick me up for an auto loan for 39,500 the question is how much the interest will be.


I expect them to come back with some high rate and tell em to refinance in a year....

Edited by ihatecollections
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Salesman called me and said finance looked at credit and said there are no issues. He’ll have more for me later as it’s super busy as it’s the last day of the month. 
 

Curious about the rate but I guess it’s safe to assume I’m good with the 2000 down?

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20 hours ago, ihatecollections said:

Salesman called me and said finance looked at credit and said there are no issues. He’ll have more for me later as it’s super busy as it’s the last day of the month. 
 

Curious about the rate but I guess it’s safe to assume I’m good with the 2000 down?

Sounds promising.  Just remember the products in the F&I office are there to make the dealership money.  As mentioned above, GAP can be purchased elsewhere for less, and I would pass on the extended warranties, wheel and tire protection and all the other add-ons. 

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Yea I passed on all that. They pushed hard for the GAP to be purchased their but I walked out with a 3.99% APR on a new 47k Lexus with 7k in rebates bringing it down to 39k without all the dealer fees and taxes. I’ll probably refinance it shortly, but I’m surprised that Toyota financed me 355 days post Chapter 7.

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Congrats.  I would say that is a good result given the recent BK.  I would look into the GAP from another source.  Start with your insurance company, it is usually a fairly cheap rider and then you can remove it at renewal time or when you think value=loan balance.

 

Enjoy the new ride.

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