Max negative equity allowed in car loans?
06-02-2009, 02:16 PM
#1
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Max negative equity allowed in car loans?
I'm a bit underwater on my S2000 loan. What's the most a bank will typically roll into your new car financing? (percentage/ratio wise)
I know it varies from bank to bank. Credit unions won't do any.
I know it varies from bank to bank. Credit unions won't do any.
06-02-2009, 03:13 PM
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not a 100% sure, but i believe its more based on the value (NADA/ KBB) of the new car you are trying to get a loan for
like if the new cars valued at 25k, and they are asking 20k then you could get a load for a max of 25k
like if the new cars valued at 25k, and they are asking 20k then you could get a load for a max of 25k
06-02-2009, 03:32 PM
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I dont think his question was answered though.
I think he's saying he has negative equity on his s2k loan and how much will the bank roll over from that towards the new car vehicle.
Example.
Negative equity of 5000.00
New car = 20,000.00
How much from the negative equity will the new bank approve him for, for the new loan which would have been 25,000??
I think he's saying he has negative equity on his s2k loan and how much will the bank roll over from that towards the new car vehicle.
Example.
Negative equity of 5000.00
New car = 20,000.00
How much from the negative equity will the new bank approve him for, for the new loan which would have been 25,000??
06-02-2009, 03:53 PM
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And we're saying that it depends on the car purchase price and the book value of the vehicle being purchased... the more under the book value, the more of the negative equity he can roll in.
06-02-2009, 04:24 PM
#7
Originally Posted by 1QWIK7,Jun 2 2009, 11:32 PM
I dont think his question was answered though.
I think he's saying he has negative equity on his s2k loan and how much will the bank roll over from that towards the new car vehicle.
Example.
Negative equity of 5000.00
New car = 20,000.00
How much from the negative equity will the new bank approve him for, for the new loan which would have been 25,000??
I think he's saying he has negative equity on his s2k loan and how much will the bank roll over from that towards the new car vehicle.
Example.
Negative equity of 5000.00
New car = 20,000.00
How much from the negative equity will the new bank approve him for, for the new loan which would have been 25,000??
Everyone is on the same page. They're just not sure what the answer is. Obviously it varies, so hit the streets.
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06-02-2009, 04:45 PM
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in 2004 my credit union offered up to 150 % for rolling over negitive equity. I would think now with the credit crunch any negitive equity loans will be much harder to come by.
06-02-2009, 07:06 PM
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it depends on your credit, but few are paying more than 120% of the value of the car being sold
IE:
car bluebook is 20,000 so max LTV is 120% of that or 24000
you buy the used car for 17000, leaving the balance (7000) available for Rollover neg eq.
this is based on tier 1 credit, some banks will not go 120%... depends on the person and the bank
it is not a specific number, but a percentage of the total loan amount. it does not matter if it is 1 dollar or 100,000,000 as long as it is in line with the value of what ever the next car you purchase is.
IE:
car bluebook is 20,000 so max LTV is 120% of that or 24000
you buy the used car for 17000, leaving the balance (7000) available for Rollover neg eq.
this is based on tier 1 credit, some banks will not go 120%... depends on the person and the bank
it is not a specific number, but a percentage of the total loan amount. it does not matter if it is 1 dollar or 100,000,000 as long as it is in line with the value of what ever the next car you purchase is.
06-02-2009, 07:56 PM
#10
def. a credit worthiness scenario,
this is just like when a dealer puts rims and other stuff on a new vehicle and adds 10k to the price and people are still able to finance the entire thing.
this is just like when a dealer puts rims and other stuff on a new vehicle and adds 10k to the price and people are still able to finance the entire thing.