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re: Need advice. I have messed up. What should be my next move?
Posted on 7/6/18 at 2:37 pm to TheCanadianAmerican
Posted on 7/6/18 at 2:37 pm to TheCanadianAmerican
quote:
Even though I have already given the down payment check to the dealership and signed all of the papers to purchase the truck, I can still refinance with a bank/credit union? That down payment money is no longer in my account.
You're refinancing the $8500 loan on an item that's "worth" $25,000.
If you're in BR, call any of the "big" credit unions: Neighbors, Campus Federal, Dow, Eagle, etc. this afternoon and ask them about refinancing an auto loan with them.
Tell them you have an $8500 loan on a vehicle that's worth $25,000 and you make $X/year. They'll be able to approve you in minutes.
0
Posted on 7/6/18 at 2:38 pm to TheCanadianAmerican
You can refinance and save money if the note is for simple interest. But you may find that you signed on for front-loaded financing with a Rule of 78s repayment schedule. Take your contract to a bank or credit union and throw yourself on their mercy. They can advise you on the best course of action.
Posted on 7/6/18 at 2:44 pm to TheCanadianAmerican
Everyone calling this predatory is completely overlooking the fact that the OP is a moron 
Posted on 7/6/18 at 2:52 pm to TheCanadianAmerican
OP- you messed up, but all is not lost yet. Don't overreact to some of the negative comments here but remember an ounce of prevention is worth a pound of cure.
Check your docs and make sure you don't have a pre-payment penalty. Then as others have stated, go to your bank or some local credit unions. Don't tell them what your interest rate is now, but start asking for their best rate. Opening an account with the group can help with this process. Make sure you have the vehicle details when you visit the banks. If you're under 50% loan-to-value you should be able to cut a deal under 10%.
Assuming you're going to end up over 5% it would still behoove you to pay the truck off in 2 years or so.
Check your docs and make sure you don't have a pre-payment penalty. Then as others have stated, go to your bank or some local credit unions. Don't tell them what your interest rate is now, but start asking for their best rate. Opening an account with the group can help with this process. Make sure you have the vehicle details when you visit the banks. If you're under 50% loan-to-value you should be able to cut a deal under 10%.
Assuming you're going to end up over 5% it would still behoove you to pay the truck off in 2 years or so.
Posted on 7/6/18 at 4:17 pm to TheCanadianAmerican
Santander without a doubt.
Posted on 7/6/18 at 4:53 pm to Mr.Perfect
quote:
Everyone calling this predatory is completely overlooking the fact that the OP is a moron
That is pretty much what predatory means. Preying on the desperate and uninformed.
And I think OP realizes the mistake he made, and came here for advice on how to correct. The snarky comments aren't really necessary.
Posted on 7/6/18 at 5:12 pm to TheCanadianAmerican
Posted on 7/6/18 at 5:16 pm to The Spleen
I have no sympathy for anyone with $17,000 in cash who chooses to finance an additional 8.
You can get a 2012 F150 platinum with 90,000 miles for 17k
You can get a 2012 F150 platinum with 90,000 miles for 17k
Posted on 7/6/18 at 5:49 pm to Mingo Was His NameO
quote:
How do you have 17k cash and zero credit.
My tenants (who eventually bought my house) signed a lease with 0 credit and $20k in the bank.
They were in their 20s and both came from middle class families who bought their cars and paid their bills through college. They never had a credit card because they never needed one. They didn't understand a thing about building credit and why it was needed to buy a house until I explained it to them.
Some parents don't teach their kids anything about money.
This post was edited on 7/6/18 at 5:50 pm
Posted on 7/6/18 at 6:12 pm to TheCanadianAmerican
quote:
The interest rate that they quoted me was 18%. I know enough to realize that this is very high(I have zero credit score), but the finance guy told me that if I could either get a co-signer soon, or refinance the vehicle in a half year or so, then the interest rate would go down substantially.
The job of the finance guy at the dealership is pretty robotic. The computer tells him what terms to offer, he goes with it and explains how you can do better somewhere else ... later, after you've signed this particular dotted line. And that's exactly what he did.
He was probably correct that you can refi to a lower rate, but the problem is that now that you've taken possession of the vehicle it will likely appraise for far lower than it would have if you'd done it on the spot. The dealer sold it for $25k but the moment you drove it off the lot it is worth less. Still, no harm in calling around to ask although you'll probably have to deal with a higher balance.
My suggestion would be one of two choices:
1) Pay this note off as aggressively as possible. 18% is no joke.
2) Refinance, understanding that you probably will have to accept a higher balance since the truck is now yours and not the dealer's. Then pay that off quickly.
The reason why your equity drops so much once you buy it is that everyone assumes you are trying to refi because you found a problem with the truck. Believe it or not, a Nobel Prize was awarded for this insight in 1970 ( LINK)
Next time you walk into a dealership, know ahead of time what you're willing to accept and what you aren't. 18% loans should never be in the mix. Better yet is to get your financing lined up ahead of time.
Posted on 7/6/18 at 7:28 pm to TheCanadianAmerican
Return the truck and buy something you can pay for in cash. You can’t afford that truck
Posted on 7/6/18 at 7:33 pm to Mr.Perfect
quote:
Mr.Perfect
quote:
Everyone calling this predatory is completely overlooking the fact that the OP is a moron
Your username says it all, Scarlett Bro’Hara. Have a great weekend in that glass house you’re living in, biatch.
This post was edited on 7/6/18 at 7:35 pm
Posted on 7/6/18 at 10:43 pm to TheCanadianAmerican
quote:
I have messed up.
yes sir you have
quote:
I need help on what my best next move should be.
Posted on 7/7/18 at 3:06 am to StringedInstruments
quote:
My tenants (who eventually bought my house) signed a lease with 0 credit and $20k in the bank.
They were in their 20s and both came from middle class families who bought their cars and paid their bills through college. They never had a credit card because they never needed one. They didn't understand a thing about building credit and why it was needed to buy a house until I explained it to them.
Some parents don't teach their kids anything about money
This is not uncommon.
I have a brother who is 22, has about 20k from working while in school and grad gifts in the bank. He has no credit.
When he graduated he couldn't get approved for a lease without putting up multiple months' rent.
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