"fhrblig" (fhrblig)
07/12/2020 at 11:42 • Filed to: Home Lawn, Escrow, Refinancin', Get a leg up on the pile
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"fhrblig" (fhrblig)
07/12/2020 at 11:42 • Filed to: Home Lawn, Escrow, Refinancin', Get a leg up on the pile | 1
| 12 |
I bought my 2008 F-150 a little over a year ago. The thing about financing something older than 10 years old is that there are a lot of financial institutions that won’t finance them, or want to charge higher interest rates. It’s understandable, as it’s reasonable to assume that that vehicle is probably a riskier investment. I understood , but I was bummed to find out that I had to go with someone other than my regular credit union. I went with a different CU that gave me 9% interest (clutch the pearls). I know that’s a lot, but I wanted the truck and was willing to pay a bit extra. Besides, I planned to (and I did) pay more than the monthly payment each month to mitigate it a bit.
Fast forward to two days ago. I got a phone call while we were eating dinner. I would normally just have sent it to voice mail, but I kind of recognized the number and I was curious . It was my CU, calling to offer me 3.69% (nice) on a refinance. (It hasn’t been unusual for them to call me about promotions.) I pointed out the year and she told me it shouldn’t be a huge problem but she’d have to check. I’ve filled out the paperwork and I’m waiting to hear back from them.
Here’s what annoys me. I had pretty decent credit at the time of the loan. Plus the truck was younger and had about 9k miles less than it does now. Why couldn’t they have at least matched the other offer at the time? I’ve been with this CU for almost 20 years now and I have a fantastic loan history through them. Hell, I might have been willing to pay them a percentage point more for the convenience of having the loan through them. Their offer was like 14%+ or something ridiculous. This other CU only has like one location in the metro area and it’s not close. Meanwhile, I could walk to my regular CU branch.
Anyway, I’m still going to save some money and it’ll be paid off in less than two years. I just wanted to whine a little. For your time, h ere’s a pic of the Ram I’d like to get when the loan is up and I have my other debt paid off (which will be about the same time) .
Nick Has an Exocet
> fhrblig
07/12/2020 at 11:56 |
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“Market forces” is probably the answer.
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fhrblig
> Nick Has an Exocet
07/12/2020 at 12:00 |
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Most likely. I doubt their auto loan division is having a good time right now.
PyroHoltz f@h Oppo 261120
> fhrblig
07/12/2020 at 12:00 |
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Star for strong bad!
I think the most frustrating thing about the whole credit situation is; those of us who work hard to ensure solid credit scores, we still get screwed by all these protocols put in place by the institutions, to protect themselves from the jackwangs who don’t care about any of it.
If I have solid credit ratings, let me finance an older vehicle. If it gets stolen or totaled, I’m still on the hook for the balance. If you’re afraid of me defaulting on the load, come take the vehicle. They’re only going to loan what it’s worth, while keeping in mind of depreciation.
It’s like the banks don’t really trust the credit rating system they created and force everyone to follow, can't win.
/endrant
someassemblyrequired
> fhrblig
07/12/2020 at 12:01 |
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They’re desperate
to get a rate higher than the big fat zero on offer from the fed
Gone
> fhrblig
07/12/2020 at 12:09 |
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Rates were higher and the economy was healthy (reality says that’s debatable) last year. Banks are probably looking for healthy solid income streams right now. Lots of forbearance, unpaid bills, etc happening right now. If you have a history with them and good credit, well there you go.
My wife and I keep receiving auto loan offers, options to open lines of credit, giant personal loans, cash out refi’s, etc. Assuming all related to income level, credit rating, debt/income ratio capacity, etc.
CarsofFortLangley - Oppo Forever
> fhrblig
07/12/2020 at 12:11 |
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9%!!!!!
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fhrblig
> Gone
07/12/2020 at 12:16 |
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We should be seeing those offers coming through soon. We both have monster credit ratings for the first time, and I sense a new 0% vehicle in our future to replace the current 0% Elantra Limited.
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fhrblig
> CarsofFortLangley - Oppo Forever
07/12/2020 at 12:26 |
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You should have seen the shit I did to myself in my 20's. I’m not proud of it. I think my first loan on my CRX back in ‘94 was 14.75%.
I am at a much better place now. I have been keeping the credit cards mostly empty except for one that I use for bills and pay off each month, taking advantage of the cash back . On my truck , I decided I was ok with the higher interest because it was something I really wanted. I’ve been paying at least 170% of the payment every month or more . Right now i f I wanted to I could go a few months without a payment because I’m so far ahead. Also for the first time in my life I actually have a little bit of money in my savings account. Feels good, man.
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CarsofFortLangley - Oppo Forever
> fhrblig
07/12/2020 at 12:48 |
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I took out an 84 month loan at 6.5% on the ST. Things changed and I paid it off after a year though.
Thisismydisplayname
> fhrblig
07/12/2020 at 14:40 |
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Sometimes that’s just the way the CUs limit their risks. The CU I used to use when I was still living at home did similar things. They just wouldn’t mess with the higher risk stuff.
ranwhenparked
> Gone
07/12/2020 at 18:59 |
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I left my business banking job at a big bank right when the COVID shutdowns hit. About 25% of my customers started ringing my phone off the hook requesting payment extensions or refinancing the first week, I can only imagine how much worse its been since March.
Our problem was we were requiring a phone book sized stack of documents and putting everything through the underwriting department, because we decided we were only going to be flexible with businesses that were in good shape before the shutdown and were only in trouble because of the COVID response, not for ones that were probably going to fail eventually anyway. And that meant a multi week turnaround time just to get a yes/no answer, and I was the one who’s contact information and office address everyone had, so I was the one they kept coming to on a daily basis to find out if their request was approved, when the back office was moving slower than the DMV in a heat wave with the air conditioning broken. Even though that job was classified as essential/life sustaining by the state, and therefore allowed to exist regardless of how many positive COVID tests there might be in the community, I am really glad I left it.
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fhrblig
> PyroHoltz f@h Oppo 261120
07/12/2020 at 23:52 |
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You're every welcome, Valerie.