Auto Financing Pre Approval Questions - Capital One, NFCU, Others?

[MarcuzAgrippa]

Hey Everyone!

Looking at buying a car in the next 30 days. The world is pretty much back open. Well...it never closed here in Atlanta, GA where I'm at but still lol. With things opening back up I am back in the office working and need to get a vehicle. I was able to hold off with working from home when my last clunker gave out on me.

I got a pre-approval from Capital One. They verified my info via pay stubs and pre-approved me for a car up to $55k. Of course, I don't need anything that expensive.

I have a charge-off/repo from over 24 months ago now. No late pays or other derogs since then. Cap1 has a variable interest rate for me depending on the car price and age. Ranging from as low as 10.75% for a new car or 15% for older cars...For some, I know this is super high but my FICO 8 is barely 600 right now last I saw.

Is there any other good placed to get a prequalification to try and find a better rate via a soft pull?

Also, does anyone know the typical FICO to qualify with NFCU for an auto loan? I have them for checking, savings, and a credit card right now.

More details on my credit profile can be found here... My Credit Profile & Updates

[cv91915]

DCU has a reputation for offering decent rates at lower score thresholds (relative to other options).

 

I have no idea if they do a soft pull prequal, but your first priority should be saving money over XX months -- and not worrying about meaningless inquiries. 

 

Even if inquiries matter, which they don't, for car financing, multiple inquiries within a reasonable amount of time are scored as one anyway.

Edited April 29, 2021 by cv91915

[MarcuzAgrippa]

4 hours ago, cv91915 said:

DCU has a reputation for offering decent rates at lower score thresholds (relative to other options).

 

I have no idea if they do a soft pull prequal, but your first priority should be saving money over XX months -- and not worrying about meaningless inquiries. 

 

Even if inquiries matter, which they don't, for car financing, multiple inquiries within a reasonable amount of time are scored as one anyway.

 

 

I'll have to check out DCU and see what they have to offer. 

 

I agree, def not overly concerned about the inquiries and focused on the best over all savings and deal. I just wasn't sure if there was another other decent options before I run off with all the hard pulls lol

[MarcuzAgrippa]

@cv91915 well I went ahead and sent in an app to NFCU and they approved me in less than 5 mins. 60 months at 2.19% or 72 months at 2.29% for a new vehicle or 3.99% for 60 months on a used car. Much better than Cap1 was offering 🤩

[cv91915]

3 hours ago, MarcuzAgrippa said:

@cv91915 well I went ahead and sent in an app to NFCU and they approved me in less than 5 mins. 60 months at 2.19% or 72 months at 2.29% for a new vehicle or 3.99% for 60 months on a used car. Much better than Cap1 was offering 🤩

 

Definitely pays to shop around!  🎏

[Killbadcredit]

Do we have to be a member to NFCU to apply? I’m not in the service.

[MarcuzAgrippa]

On 5/1/2021 at 6:34 AM, cv91915 said:

 

Definitely pays to shop around!  🎏

 

Very true!! 

[centex]

On 5/1/2021 at 5:26 AM, MarcuzAgrippa said:

@cv91915 well I went ahead and sent in an app to NFCU and they approved me in less than 5 mins. 60 months at 2.19% or 72 months at 2.29% for a new vehicle or 3.99% for 60 months on a used car. Much better than Cap1 was offering 🤩

Definitely better than CrapOne, but still drags the payment out far too long.  I sincerely hope that even if you take the 2.19%, you intend to pay it off far more rapidly than five years...

 

Having an auto-draft in the back pocket definitely helps with the shopping process though precisely because you know what you are able to sign for. 

[MarcuzAgrippa]

20 hours ago, centex said:

Definitely better than CrapOne, but still drags the payment out far too long.  I sincerely hope that even if you take the 2.19%, you intend to pay it off far more rapidly than five years...

 

Having an auto-draft in the back pocket definitely helps with the shopping process though precisely because you know what you are able to sign for. 

 

@centex If I could I would but 60-72 months puts the payment in the right budget for me for a new car with a good warranty. 36-48 months adds 1/3 more on the payment and the cost of insurance here in GA is already almost the price of the car note because our rates are so high.

 

I would go used but two things have troubled me in the past...repairs right after I get the car no matter how many mechanics I have inspect the cars and a higher interest rate. A car that is cheaper will have NFCU give me a higher APR that makes the payment just shy of the new car payment amount. When I calculated up the interest, even at 60 months it is less than $2k. 

[cv91915]

I'm ready for another new car too (and I believe I have my list narrowed down to two options that I'd like even more than what I have), but I have 13 months left on my lease.  

 

BUT, even if my lease was up this month, I'd extend it for as long as the lessor would allow, and then we'd get by with one car here (our current 2008 Lexus RX 🤮) until the market normalizes.

 

Now is probably the worst time in our lifetimes to buy a new car, given that supply constraints coupled with insatiable demand have driven prices to nauseating levels.  People are paying over MSRP for Kias and Hyundais right now.   

 

I have no meaningful budget constraints, I am just revolted by the idea of lighting money on fire for a discretionary purchase.

[MarcuzAgrippa]

8 hours ago, cv91915 said:

I'm ready for another new car too (and I believe I have my list narrowed down to two options that I'd like even more than what I have), but I have 13 months left on my lease.  

 

BUT, even if my lease was up this month, I'd extend it for as long as the lessor would allow, and then we'd get by with one car here (our current 2008 Lexus RX 🤮) until the market normalizes.

 

Now is probably the worst time in our lifetimes to buy a new car, given that supply constraints coupled with insatiable demand have driven prices to nauseating levels.  People are paying over MSRP for Kias and Hyundais right now.   

 

I have no meaningful budget constraints, I am just revolted by the idea of lighting money on fire for a discretionary purchase.

 

It is a tough time to buy a car! Even used cars are getting out of wack right now. With places opening back up though it puts me in a tough spot. 

 

The dealers I've been working with, I gave them a breakdown of what I am looking for and my price range, either they can help, or they can't and I keep searching. I have some wiggle room with time. Just can't wait till 2022 when the market could be different lol. 

[cv91915]

4 hours ago, MarcuzAgrippa said:

 

It is a tough time to buy a car! Even used cars are getting out of wack right now. With places opening back up though it puts me in a tough spot. 

 

The dealers I've been working with, I gave them a breakdown of what I am looking for and my price range, either they can help, or they can't and I keep searching. I have some wiggle room with time. Just can't wait till 2022 when the market could be different lol. 

 

It's all temporary insanity.

 

I bought a new car in 2011. 

 

10 years and 84,000 miles later I did a private party sale and got almost 30% of my money back.

 

I showed it twice and got asking price. 

 

It would have gone home with person number 1, but he seemed sketchy toward the end so I didn't go through with the sale.

 

 

 

 

Edited May 4, 2021 by cv91915