Help with a Refi on the Tundra

[Lawnarjax]

I took the dealer financing to help get a better deal on the truck and now I am going to Refi with my credit union. I was surprised to get a call today from the bank wanting to know more about the truck because the loan is about 35k and they put the value at 30k. They told me that they use the NADA value via information from the VIN. My question is this:

Does the XSP package(Tires/wheels, leather, step boards, flares etc), which is listed a 5k+ option on this truck show in the VIN info? If not will they consider that to recalculate the value?

The loan officer is having me fax in this information so that they can look at it. It sounds like the they might work with me, but you never know.

Anyone have any experience with this?

[firetruck41]

Originally Posted by Lawnarjax

I took the dealer financing to help get a better deal on the truck and now I am going to Refi with my credit union. I was surprised to get a call today from the bank wanting to know more about the truck because the loan is about 35k and they put the value at 30k. They told me that they use the NADA value via information from the VIN. My question is this:

Does the XSP package(Tires/wheels, leather, step boards, flares etc), which is listed a 5k+ option on this truck show in the VIN info? If not will they consider that to recalculate the value?

The loan officer is having me fax in this information so that they can look at it. It sounds like the they might work with me, but you never know.

Anyone have any experience with this?

I doubt it, XSP is not a factory option, it is port installed, so for all intent and purposes it would not show up, as say an "SR5" or "Limited" would (actually it will probably show as just an SR5, since it is an SR5 with an aftermarket option package). You will have to tell them what the sticker says as far as what is included and the msrp of the aftermarket option package.

[MOTAMHAN]

I would agree with Ben. The vin is not going to show the package, as he said it is a port installed option. I would think with you givng them the requested info, it would help. The vin is going to show an SR5 in my opinion.

[Lawnarjax]

Cool, thats what I thought too, it should bring the numbers in line. thanks for the input.

[ponyuk]

If you still have the window sticker and sales receipt then fax a copy to them.
My first 2007 Tundra was totalled on the freeway with less than 500 miles on it. The insurance company tried to pay me $28k! They used all kinds of ridiculous statements - the two comparable vehicles they listed on their offer were a double cab base model, and a stock crewmax. When I called to ask what was going on they claimed "a Tundra is a Tundra" - I countered "if you paid for a SR5 CrewMax 4x4 and they delivered a base regular cab 4.7 L would you accept it"; the punk answered "well sir, I would not have bought a Tundra, I would have bought a Dodge" WTF! I asked for his supervisor who quickly settled on full value after I faxed the window sticker and sales receipt to them.
Fax the window sticker, along with your sales receipt and you should not have a problem.

Originally Posted by Lawnarjax

I took the dealer financing to help get a better deal on the truck and now I am going to Refi with my credit union. I was surprised to get a call today from the bank wanting to know more about the truck because the loan is about 35k and they put the value at 30k. They told me that they use the NADA value via information from the VIN. My question is this:

Does the XSP package(Tires/wheels, leather, step boards, flares etc), which is listed a 5k+ option on this truck show in the VIN info? If not will they consider that to recalculate the value?

The loan officer is having me fax in this information so that they can look at it. It sounds like the they might work with me, but you never know.

Anyone have any experience with this?

[55reasons]

Your lucky I would say.

The sticker on my truck was 52.

Kelly and NADA value with 5k miles.... 34.

It has more factory options than either KBB or NADA has to put checks in.

[mitch9000]

Domestic trucks.......having a port installed option? Your bank should calculate based on sale date.......essentially this is a new truck....and NADA/KBB would not be used.......the MSRP/window sticker should drive the value discussion.

[ZX10R]

Sounds like your credit union is working it up as a used truck. Even though you might have bought it for 35k a few months ago, NADA might be saying its only worth 30K. Its just like your insurance company, if you wrecked your truck they would work it up as used vehicle and payout accordingly.

[StatCoder]

I think you might have a problem. You're trying to refinance something that you are probably upside-down on. The factory financing has this built in risk that they accept in order to move the truck. Your credit union may not think this is a very good risk to take on. I'm sure they must run into this issue every day with refinancing relatively new vehicles.

[morf13]

I sell cars and deal with financing,and if you bought it brand new a few months ago,and are refinanicng it now,ITS USED! So they will not give you the full value of a used vehicle.You may owe $35k on it,and they may book it at $30K,because you may have reolled inequity from another vehicle into the loan,or bought extras like warranties,etc,which may explain why there is a descrepancy in what the bank says its worth and what you currently owe.Dont forget,the minute you drive ANY new vehicle off the lot,its value drops.Foreign cars,esp. Toyota,maintain very high resale values much better then American vehicles like GM,FORD,DODGE,etc. But still in all,the value will drop.Also things like bodystyle changes will effect a vehicle value greatly.For example,i sell cars,and bought a truck from a friend of mine brnd new at the dealer.It was an 06 tundra,the last year of the old style.I saved about $3500 off of list price,buying it for dealer invoice,plus tax n tags,and a warranty,which was about $1200.I put $2000 down and took 0% apr for 60 months.Well it sounds like i would be in great shape as far as my trade value vs what i owe.WRONG! I was shocked to do some inside values on my truck for tradein(since i work at a dealer,i was able to look at dealer trade info,and auction pricing)And the trade value was $17-$19,000.I owed $24K.Well canceling the warranty and getting back most of its $1200 cost would leave me about $3800 in negative equity.I am trading it in for $19,200 so i am about $3600 out of equity in all.Thats because of the new tundra style devaluing the old style.ANYTIME a manufacturer introduces a new bodystyle in a vehicle,leftovers in the old bodystyle will be great deals for you price wise,but come tradein time,they also will be alot lower too

[Lawnarjax]

Good News!!!

My credit union is going to use the sticker price to value the truck. So they will fully cover the loan!!! Sweet. This gets my truck paid off 2 years sooner and for 100 buck a month less. Plus their Gap coverage is 500 buck cheaper. Plus they give me a .25% discount for using autopay.

Credit unions rock!!!

I should have gone thru them originally, but the dealer gave me some free stuff for going thru their preferred lender(Chase). But it got me a free bedliner and hitch, plus like 6 tanks of gas. I only made 5 payments to them so I think I did good.

[dawgdays]

Always negotiate price first, then talk about financing and lastly trade-in.

Each of these items should be negotiated INDIVIDUALLY and IN THIS ORDER!!

Check with multiple lenders and get rates BEFORE you even get to the dealer. Also, it is a good idea to bring your financial calculator with you to the dealer (or laptop) so you can calculate the EXACT payment based on rate, term, etc. More than once I have heard of the dealer "including" other stuff to jack up the monthly total by $25. That is $900 for a three year loan!

If you are not a member of a credit union you should join one if you want to finance a vehicle. Mine was 1.5 points cheaper than the cheapest bank rate I could find.

It is also good to put down at least 10% so you don't have to worry about gap insurance. If you don't have that much to put down, best to wait...

---The DAWG approves this message---
(MBA in Finance)

[dawgdays]

ONE OTHER THING!!

Make sure that there is no early pay off penalty!!

[chargedtaco01]

I agree, CU's are great in most cases. Sounds like you and I may be using the same one. I didn't go the dealer route to being with though, just took a pre approved draft in to Arlington with me.

[dbarnett66]

What was the credit unions refinance rate? I am looking to refinance my other vehicle if I can find something around 5.5%.