Posted: 8/31/2012 6:35:32 PM EDT
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I have a car loan with my bank. I am getting ready to buy a second car, used, for a child. I want to have cash in hand and simply go out, find a good vehicle, and buy it.
I am in the middle of a home re-fi, and my re-fi guy knows of my intent to get the second loan, and says it shouldn't be a problem as far as the re-fi goes. I'd really rather not have two loans. So I'm considering going to my bank and asking for a second loan –– enough to pay off the first and buy the second car. In effect, roll the first loan into the second, so at the end of the day, I still only have one outstanding liability. The last time I told my bank I wanted a loan for a car, we went through all the usual auto finance stuff. I got a low rate, which is fine, and they use the truck as collateral, which is fine. Problem is, I don't know what the second car will be, so I can't very well give them the VIN and what not. And I don't want to have to go look at a car, hope that the seller promises to keep it for me while I sort out an additional loan with the bank. So can I just go to the bank and tell them I want a second loan to pay off the first and have some left over for some unrelated purpose? I'm not going to lie to them, and claim its for home improvement or anything like that. Just wondering how to approach it. How does one go about getting a loan for a vehicle when you simply want to have cash in hand to make a purchase at a later time? As an aside, can anyone recommend a credit union in Tucson that offers lower rates to federal employees? Looking to shop around a bit for the best rate before I bite yet another bullet in this economy. Thanks. |
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Quoted:
I have a car loan with my bank. I am getting ready to buy a second car, used, for a child. I want to have cash in hand and simply go out, find a good vehicle, and buy it. I am in the middle of a home re-fi, and my re-fi guy knows of my intent to get the second loan, and says it shouldn't be a problem as far as the re-fi goes. I'd really rather not have two loans. So I'm considering going to my bank and asking for a second loan –– enough to pay off the first and buy the second car. In effect, roll the first loan into the second, so at the end of the day, I still only have one outstanding liability. The last time I told my bank I wanted a loan for a car, we went through all the usual auto finance stuff. I got a low rate, which is fine, and they use the truck as collateral, which is fine. Problem is, I don't know what the second car will be, so I can't very well give them the VIN and what not. And I don't want to have to go look at a car, hope that the seller promises to keep it for me while I sort out an additional loan with the bank. So can I just go to the bank and tell them I want a second loan to pay off the first and have some left over for some unrelated purpose? I'm not going to lie to them, and claim its for home improvement or anything like that. Just wondering how to approach it. How does one go about getting a loan for a vehicle when you simply want to have cash in hand to make a purchase at a later time? As an aside, can anyone recommend a credit union in Tucson that offers lower rates to federal employees? Looking to shop around a bit for the best rate before I bite yet another bullet in this economy. Thanks. When my wife and I wanted to buy a pool we got a line of credit from compass bank. It's a fixed apr credit card and we were able to buy what we want. Typically they won't allow you to do a car loan without a vin number. Look into a line of credit |
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I really wouldn't recommend any sort of loan process while working a home loan. The reason being with the length of time they usually pull a fresh credit report before final underwriting and that can throw your ratios all off - DTI, CTD, etc. I've seen a few cases where people have made that mistake. YMMV.
Secondly, most banks won't do a title loan ie loan extra out on your vehicle. It IS possible if you're refinancing for a lower rate and want extra out (depending on underwriting standards 80%-100% LTV.) If your vehicle's worth supports it, you can loan the full amount but that's all up to the bank's guidelines. It'd be easier to go to another bank, get the full LTV but who knows. I'm assuming the second vehicle won't be worth as much if you're wanting to pull some extra out. Now what you COULD do is ask your banker for a HELOC while refinancing and rolling your current vehicle loan into that and being a line of credit pull out extra cash to buy a vehicle. Rates are usually real low, payments can be interest only (usually) or more. Plus once paid off, you have a large revolving line of credit secured by your house. It all depends on Loan To Value on your house. You may be able to roll ALL of it into a primary mortgage at one low rate. Hope that helps. |
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Id wait til the home loan process is done.... If you have a car loan and only want one loan, you would have to re fi the one loan and ask for extra, and probably only give you if you had a ALOT of equity... Not the best, but take a litle extra on home re-fi to buy car...
if Your current auto loan is almost done, You may be able to take a high enough personal loan to pay off and buy another car, but generally higher interest.. AS far as credit unions....Im federal employee as well, which really is here nor there... I used to belong to Vantage West when It was DM , but quit... since it changed I belong to AZstatecredit union and hughes federal, Vantage has not been able to compete with them... I had my last truck thru hughes they gave me the BEST rate.... This time around azstate gave me the best rate.. but check thier web pages see the best rates.. my 2 choices hughes azstate |
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Lots of GREAT info here...this is the best advice
Quoted:
kids dont deserve nice cars. buy the kid an old honda and a set of metric wrenches for 1k. no loan needed. with a VERY close second too.... Quoted:
The ony thing I have to add is that debt is the devil and paying cash is the way to go for a child's used first car. Told my kid to pick out what he likes and can afford, i have the tools and will teach him how to fix it. We are still a bit away from the purchase but he is considering an older Cherokee |