We currently are paying 15.99% on a Jeep loan that has 30 more monthly payments due ($346 a month). So I decided to apply for the Cap1 Auto Refi loan to get a better interest rate and lower our payments. WE WERE APPROVED!! Should be great right? Wrong. They approved us for the amount at 13.95% for 36 months which would make our monthly payments $395.10. WTF A lower interest rate, albeit 2.05%, an extended six months, yet our monthly payments are HIGHER?? What to do?
ignore it. you'll have a fairly new tradeline that will impact your credit score negatively for like 6+ months and a higher payment amount showing, which may or may not hurt your score and also you will be above 50% utilization on that new loan for another year which may or may not hurt your score (I say may or may not because some places dont count car loan percentages like credit card percentages, they just look at a definite re-occuring payment that you are going to have for 36 months). Also, the OC might not update the old loan to show it paid off for several months so that will negativly impact your score too. (2 300+ dollar payments each month will show until they update their records) Plus this just sounds bad, more time, more money? I'd say the reason it is more is because, say you owe 5k on your loan to pay it off. CAP1 takes 5K, addes their 13% interest onto it, making it $5700, etc , etc blah blah...yes I cant do math. I say ignore it, but others may have a different opinion. I had a similar offer from a CU, they offered a lower interest rate, but the same payments and the same payoff time. Plus they wanted 600+ down on the loan just to get that (blue book value was lower than I hoped)...I declined. That car had a 19% interest rate originally and the last 2 years I've been paying the interest on it.
Yeah, looks fishy. I back calculated your remaining balance on the existing loan to be $8510. The payment I calculate on $8510 for 36 mo. at 13.95% is $291/mo. There's some information missing here.
I just used my handy dandy, free download amort calc., and at that rate, term, and payment amount, it is showing your loan amount as $11,569.00 3,000 more than Croft says you owe on the jeep now. It sounds almost like they are financing your pay OUT not your pay OFF. Might give them a call.
Are they assuming you want an extended warranty or that you don't have car insurance? I once had Wells Fargo Financial add all this junk in to a contract they made for me at a refinance. Find out the specifics of the contract and ask Cap One to remove the fluff. This IS a simple interest loan, right? Make sure of that, too.
Sorry - by pay out I mean what he would pay in total (p & i) on the jeep under his current terms. 346 x 30 = $10,380 Well heck thats still 1200 less. Never mind
Re: Re: Cap1 - WTF????? What the loan will actually cost you in dollar amounts by the time you're done paying. That is quite possible that someone got the wrong figure and went from there.
Jlynn: Thanks. Wow, that would be quite a weird deal. Anyways, FWIW, I agree with Marci in that there's an unpleasing breeze from the direction of Denmark and the OP needs more info. from Cap 1.
I called them back and they said they added $2000 for finance charges so my payoff amount of $11,591 is now $13,591 @ 13.95 @ 36 months. She was like "hmmm, yeah you are paying more than you were before. Well, that's the deal. We can't change the interest rate. We have to make you an offer and that's our offer." I told her to cancel the app. So I"ve taken another hard inq for damn nothing.
Re: Re: Cap1 - WTF????? I'm lost. Your payoff amount is $8510. Call your current lienholder and verify. Cap One I don't think can add 2K (actually 3K) . That could very well be a violation of TILA. Their offer is 13.95 at 36 months. I would make a big stink.
