Quote:
Originally Posted by S.hasan546
Hey guys i was having some issues with refinancing my 1M with a credit union. They wouldn't approve me for the more than the "value" of the car, which they state is only $54,000. But i paid almost $56,000 + fees + taxes rolled in. It came out to almost $61000. They will only give me $54,000. Is this right? If i used them to do the sale from the beginning they didn't have a problem rolling in taxes and the extra options. Idk I'm confused.
will Pen Fed go by the purchase price?
Ill just pay the $7,000 upfront if i really have to since the rate will drop by so much. But id prefer to just roll everything in.
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Nothing strange here really. The bank is willing to loan based on what the collateral, the car in question, is worth.
The value will not include sales tax, tags, fees, etc...
Why would they? It's not part of the value of the car.
A refinance will take into account that the car is used, and they can and will reduce what they will loan on the car based on the depreciation.
I never roll taxes and fees into a loan or lease that has a rate of higher of 0%. Why would you pay interest on taxes and fees?
If you would have paid the taxes and fees up front, the even with the slight depreciation the value of the car and what the bank will loan would probably be much closer.
Pay the tax and fees up front in cash, and get a loan on the actual value of the car. In the end you will have paid less overall.
Done.