Need advice convincing my bank that "miles aren't a big deal"...
06-27-2005, 06:20 PM
#1
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Need advice convincing my bank that "miles aren't a big deal"...
Need to do it tomorrow. Truck is on eBay, it's got 275K miles on it. I've discussed it with the truck owner, and I can "buy" it for $9600, since it is pretty local to me where I'm at. I talked to one of the loan officers, and she said the main officer 'didn't like what she read', and that she wasn't fond of the miles on the truck. She went home early today sick though, so hopefully she'll feel better tomorrow, and I can convince her that it is in fact worth it. (I did check out the truck myself). It checks out good NADA...low retail is $11,575, and I only need $9600.
Let me know if you've got any advice, thanks! They women are pretty reasonable from when I've talked to them before, I just need to get her to see the light. Thanks!
Dave
Let me know if you've got any advice, thanks! They women are pretty reasonable from when I've talked to them before, I just need to get her to see the light. Thanks!
Dave
06-27-2005, 06:31 PM
#2
Is there a LTV (Loan to Value) factor you are working under?
If I were a bank I would be a bit skeptical of that many miles too. You have to remember they are used to dealing with throw away vehicles that run an average of 120K miles.
I would print out the NADA and or KBB ( + carfax if you think it's worth the $19.99)
My guess would be they will not make this loan. You may be able to go unsecured at a local bank or Credit Union @ about 10%.
Good Luck.
If I were a bank I would be a bit skeptical of that many miles too. You have to remember they are used to dealing with throw away vehicles that run an average of 120K miles.
I would print out the NADA and or KBB ( + carfax if you think it's worth the $19.99)
My guess would be they will not make this loan. You may be able to go unsecured at a local bank or Credit Union @ about 10%.
Good Luck.
06-27-2005, 06:47 PM
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Not sure what Loan-to-Value means....
I always wonder what do they care what shape it's in anyways? I mean, I'm the one paying on it...not them...
They already looked it up NADA/KBB, and the value, even with the mileage, is almost $2K more than what the guy wants for the truck, so the value's not the problem. The one loan officer told me the main approver 'wasn't feeling good and went home sick today', so hopefully tomorrow maybe she'll be feeling better and will see the light? I dunno.
Here's the truck in question:
I always wonder what do they care what shape it's in anyways? I mean, I'm the one paying on it...not them...
They already looked it up NADA/KBB, and the value, even with the mileage, is almost $2K more than what the guy wants for the truck, so the value's not the problem. The one loan officer told me the main approver 'wasn't feeling good and went home sick today', so hopefully tomorrow maybe she'll be feeling better and will see the light? I dunno.
Here's the truck in question:
06-27-2005, 06:49 PM
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Originally posted by pjsnyder76
What about the 12V in Bacliff? 188K for $10,600??
Looks pretty nice.
2 WD though...........
What about the 12V in Bacliff? 188K for $10,600??
Looks pretty nice.
2 WD though...........
I want a 4x4, 5-speed, long bed, extended cab, 12-valve, NOT RED OR MAROON.
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06-27-2005, 07:03 PM
#8
Loan to Value = the actual value of the item v.s the loan $ you are securing.
Example: Truck is worth 10K, you need to borrow 10K, LTV= 100% (not a very good risk for the bank). Next, truck is worth 10K, you are looking to borrow 8k, LTV= 80%, good risk for the bank (built in 20% buffer for when you trash the truck and they are stuck with the repo to wholesale). Just hypothetical, I'm not suggesting that you won't make good on the note or anything.
In short the bank thinks about things opposite, they need to be concerned with how auctionable the truck is when you default.
Example: Truck is worth 10K, you need to borrow 10K, LTV= 100% (not a very good risk for the bank). Next, truck is worth 10K, you are looking to borrow 8k, LTV= 80%, good risk for the bank (built in 20% buffer for when you trash the truck and they are stuck with the repo to wholesale). Just hypothetical, I'm not suggesting that you won't make good on the note or anything.
In short the bank thinks about things opposite, they need to be concerned with how auctionable the truck is when you default.
06-27-2005, 07:09 PM
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Oh I see. Well, the NADA value of the truck, with the mileage, low retail is $11,575. They could give me $9000 and I would be happy, so that's what, 77% and some change?
06-27-2005, 07:27 PM
#11
Originally posted by Dave88LX
Oh I see. Well, the NADA value of the truck, with the mileage, low retail is $11,575. They could give me $9000 and I would be happy, so that's what, 77% and some change?
Oh I see. Well, the NADA value of the truck, with the mileage, low retail is $11,575. They could give me $9000 and I would be happy, so that's what, 77% and some change?
The money "down" part is just a way of thinking that you are ahead on the loan before you've even made a payment. You would not physically walk into the bank with the money, just be ahead of the curve by virtue of value (what the seller is letting it go for) In other words, it's a car (truck) it will never INcrease in value, as you own it and pay for it, the value will drop (at a lessor rate as it is a Diesel).
The Credit Union I bank at has some silly rules on Used Car Loans, most of which are likely based on situations where they have been burnt in the past.
06-27-2005, 09:18 PM
#13
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It is probably over loan value. They will not use NADA retail but will use a different book, think it is the black book which is loan value. See at retail if you default they will auction it and it will not bring retail. Your banker knows what is loan value, ask her, they may float it at the proper value. The three of them that I am familiar with a Retail, Trade in, and Loan value. The banks only use loan value, which may very well be formulated from Retail, not sure.
06-27-2005, 09:26 PM
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Thanks for the insight on that. When I talked to her, she said they used the NADA values, but, I guess like you said they have another value they go by... I wonder if showing her the Autotrader listing with similar trucks of the same years going for $13-22K will help sway her?
06-27-2005, 10:20 PM
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I have to be a party pooper here.
Dave, $9600 is a decent deal for a stock unit with 275K miles. Personally I would be more interested if it were around $8000. If I were you I would simply wait until I had the cash in hand and then start looking. This is not the last 12V and is certainly not the only one close to you. $$$ talks! Forget about the bank. Don't give them your money!
Dave, $9600 is a decent deal for a stock unit with 275K miles. Personally I would be more interested if it were around $8000. If I were you I would simply wait until I had the cash in hand and then start looking. This is not the last 12V and is certainly not the only one close to you. $$$ talks! Forget about the bank. Don't give them your money!