Financing right after a Payoff...
Thread Starter
Safety Car
Joined: Sep 2007
Posts: 3,816
Likes: 16
From: Anchorage Alaska
St. Jude Donor '08-'09-'10
Financing right after a Payoff...
Hey guys,
I was looking to buy a C5 in March/April, but a few are for sale now that I simply can't ignore. I mailed in a payoff on my previous car on Friday and it should post this week. But who knows how long until my credit report reflects it. Do you think, in this circumstance, a lender might finance my C5 if I've paid off my prior loan but it doesn't yet show on my credit report? Does this work? Is there anything I can do to facilitate the process somehow? Thanks for any help!
A-soon-to-be-C5-owner
I was looking to buy a C5 in March/April, but a few are for sale now that I simply can't ignore. I mailed in a payoff on my previous car on Friday and it should post this week. But who knows how long until my credit report reflects it. Do you think, in this circumstance, a lender might finance my C5 if I've paid off my prior loan but it doesn't yet show on my credit report? Does this work? Is there anything I can do to facilitate the process somehow? Thanks for any help!
A-soon-to-be-C5-owner
Drifting
Joined: Aug 2007
Posts: 1,495
Likes: 0
From: Homer Glen IL
All you need is a receipt from the finance company showing that it received payment in full. The title should follow 2-4 weeks later. The credit report update can take a long time. Talk to your new finance company and explain the situation. I am sure they see it all the time.
Race Director
Joined: Mar 2007
Posts: 18,308
Likes: 21
From: Marlton. Increasing performance one speeding ticket at a time! NJ
It shouldn't be a problem. But, everyone is different.
If you make enough to pay for both, then even if one hasn't shown as paid, then there's no issue. If you (on paper) can't afford both, then you may need to provide more documentation to prove you paid off the other loan.
At one time, I had 3 cars under my name, and there wasn't a problem. But if your credit scores are not as high, then you run into problems.
When in doubt, most dealers will take a deposit and hold a car for at least 30 days. If your going private sale, that's going to be a little more difficult.
Kudos for buying a vette in Alaska!!!
If you make enough to pay for both, then even if one hasn't shown as paid, then there's no issue. If you (on paper) can't afford both, then you may need to provide more documentation to prove you paid off the other loan.
At one time, I had 3 cars under my name, and there wasn't a problem. But if your credit scores are not as high, then you run into problems.
When in doubt, most dealers will take a deposit and hold a car for at least 30 days. If your going private sale, that's going to be a little more difficult.
Kudos for buying a vette in Alaska!!!
Thread Starter
Safety Car
Joined: Sep 2007
Posts: 3,816
Likes: 16
From: Anchorage Alaska
St. Jude Donor '08-'09-'10
thanks for the replies! I knew it would take a while... but I'm sure I'll get a receipt much sooner, or at least maybe a printoff from my online account showing it to be paid in full. Unfortunately, the Vettes I am interested in are private-party sales so I may have to get a little creative with a 3rd party lender. I need to find one that will work with me on it (and write business for Alaska... most of the big players do not, including eLoan and HSBC so I'm hurting here).
Safety Car
Joined: May 2006
Posts: 3,799
Likes: 1
From: Northern Virginia
St. Jude Donor '08
thanks for the replies! I knew it would take a while... but I'm sure I'll get a receipt much sooner, or at least maybe a printoff from my online account showing it to be paid in full. Unfortunately, the Vettes I am interested in are private-party sales so I may have to get a little creative with a 3rd party lender. I need to find one that will work with me on it (and write business for Alaska... most of the big players do not, including eLoan and HSBC so I'm hurting here).
Also, you might be able to get your current finance company to send a letter to the finance company you want to do business with.
Melting Slicks
Joined: Mar 2007
Posts: 2,158
Likes: 1
From: Always In Front, Colorado
I second capital one auto finance. I will use them when I want to move on a car fast as I can get an approval in less than a minute and have a blank check over-nighted. After I get the car bought I will pay off the note.
It just takes me a few days to get my funds moved over. I have used them 4 times in the last 1.5 years.
It just takes me a few days to get my funds moved over. I have used them 4 times in the last 1.5 years.
Administrator
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Have tne new lender (if different than the old one) call the old one or just get a letter from them that you paid the other car off with no late payments, etc.
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Safety Car
Joined: Nov 2002
Posts: 4,025
Likes: 2
From: Valdosta GA
Having been on the banking side, I'll share a few of my observations.
The first is that if you had less than 10 payments shown on your existing loan, a lot of banks/finance companies don't include it in your debt service payment calculations. So that loan probably isn't impacting your ability to finance another one.
However, if you are planning to use the existing car as collateral for then new loan you are going to need some evidence of clear title from the existing lienholder.
There is always a way to get things done.
Good luck with the new purchase.
The first is that if you had less than 10 payments shown on your existing loan, a lot of banks/finance companies don't include it in your debt service payment calculations. So that loan probably isn't impacting your ability to finance another one.
However, if you are planning to use the existing car as collateral for then new loan you are going to need some evidence of clear title from the existing lienholder.
There is always a way to get things done.
Good luck with the new purchase.
Race Director
Joined: Jan 2003
Posts: 19,802
Likes: 0
From: San Antonio Texas
St. Jude Donor '05-'06-'08
All you need is a receipt from the finance company showing that it received payment in full. The title should follow 2-4 weeks later. The credit report update can take a long time. Talk to your new finance company and explain the situation. I am sure they see it all the time.
Racer
Joined: Oct 2006
Posts: 385
Likes: 0
From: CA
I sold my 03 cobra and bought my Z06 the very next day. I financed through the same bank I had my loan on the cobra through, and it was no problem. It was my third car loan through them and they didn't care if the other loan was off or not. You should be fine.
Safety Car
Joined: Nov 2003
Posts: 4,108
Likes: 0
From: San Jose CA
I would contact a credit union, that's how I got my loan when I got my Z from a private party. Real easy, the previous owner got a check from the bank in his hands on the spot. About a 30 min process start to finish. Of course, not all situations are that easy. But I like dealing with credit unions, low rates too. 
Drifting
Joined: Nov 2001
Posts: 1,658
Likes: 25
From: Rochester Minnesota
You may not want to hear this, but why not put those payments you've been making in the bank for a year or so.
I'll admit that I bought my first Vette (a new one) at the age of 24 on an installment plan-----but I also knew I would pay it off early. After one year, I did pay it off in full. Since then, cars have been cash purchases. The money I saved over 40 years and 9 new cars (plus a few used ones) is probably in the neighborhood of $100,000. With interest earned on that $100,000, it probably adds up to $150,000 or more.
I know you want a newer/different car (and a Vette), but take a look at how much interest you ended up paying on your last car and multiply that out over future cars.
Think about it. If nothing else, you could then afford to be making payments on a new C6 in a year or two!!
I'll admit that I bought my first Vette (a new one) at the age of 24 on an installment plan-----but I also knew I would pay it off early. After one year, I did pay it off in full. Since then, cars have been cash purchases. The money I saved over 40 years and 9 new cars (plus a few used ones) is probably in the neighborhood of $100,000. With interest earned on that $100,000, it probably adds up to $150,000 or more.
I know you want a newer/different car (and a Vette), but take a look at how much interest you ended up paying on your last car and multiply that out over future cars.
Think about it. If nothing else, you could then afford to be making payments on a new C6 in a year or two!!
Thread Starter
Safety Car
Joined: Sep 2007
Posts: 3,816
Likes: 16
From: Anchorage Alaska
St. Jude Donor '08-'09-'10
Thanks again for all the replies everyone!
I managed to get it straightened out... Previous lienholder (Ford Credit) faxed a payoff statement to my bank and that cinched it. Ended up securing a loan with my paid-off car, so I should be able to buy a Vette with the cash from that loan. Heck, I'd rather have the Vette paid off than my current car so this works well for me. Now I'm just hoping the Vette I want hasn't been sold yet.... anxiously awaiting a reply from my PM to the seller here! Rest assured if I do buy his car, I'll report back with a "look at my first Corvette" thread!
In the meantime I'm feeling like
.....
and 50th in the 49th... where did you take that picture in the avatar?? looks like a few different places I know. Nice to have some Alaskan company!
I managed to get it straightened out... Previous lienholder (Ford Credit) faxed a payoff statement to my bank and that cinched it. Ended up securing a loan with my paid-off car, so I should be able to buy a Vette with the cash from that loan. Heck, I'd rather have the Vette paid off than my current car so this works well for me. Now I'm just hoping the Vette I want hasn't been sold yet.... anxiously awaiting a reply from my PM to the seller here! Rest assured if I do buy his car, I'll report back with a "look at my first Corvette" thread!
In the meantime I'm feeling like
.....and 50th in the 49th... where did you take that picture in the avatar?? looks like a few different places I know. Nice to have some Alaskan company!
Melting Slicks
Joined: Dec 2005
Posts: 2,291
Likes: 0
From: sterling ct
we have seen this many times (i own a mortgage co) if you obtain your proof of payoff ie fax copy from your current/former lender...you can have a credit bureau do a rapid rescore- it costs 20 for each bureau (equifax, trans union, experian. if you know someone at a mortgage co just tell them you will pay them the cost for the rescore. it takes 24-48 hours upon receipt by the bureaus to recieve a tradeline showing the change and your new score.
hope this helps.
hope this helps.
Racer
Joined: Jul 2006
Posts: 256
Likes: 0
From: Palmer Alaska