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Valued Contributor
dodgerslv
Posts: 1,759
Registered: ‎06-16-2012
0

2nd Auto Loan Approval Chances

Hi everyone, im sure this has been asked before many times but its first time posting here. I am currently financing a used 2011 Cadillac since July of last year. Original amount was about 34,800 at 9% APR. I wanna get another vehicle because the one i have know is actually for my brother. I was looking at a brand new Acura TL going about 45,000. Wanna see if i can have it this month. I currently make about 38,000 a year at my job but since January i have been a business owner and usually keep an extra 2500 to myself a month so it will equal an additional 30,000 of income a year. My fico scores are below on my siggy. My utilzation is about 8-9%. Are my chances good? Will the bank most likely need proof of income? dont have tax returns to show proof of business owner as i started this in 2013. Should i look at a less pricey car? or maybe leasing will be a bettter option?. Any input will help.


Cards: (Citi x6) (Chase x5) (US Bank x3) (Amex x3) (Barclays x3) (BofA x3) (Cap1 x2) (WF x2) (Penfed x1) (Discover x1) (Sync/GE x4) (Macys x2)
Fico 08 scores (8/27/14) EX: 772 TU: 767 EQ: 778 (Utilization at 8% right now).





New Contributor
Project17
Posts: 137
Registered: ‎11-21-2012
0

Re: 2nd Auto Loan Approval Chances

They will most likely want proof of income so if you can only prove the $38k I don't see you getting a approved for a second loan for $45k.. Keep in mind often the apr on a second financed car is usually higher then the first. Your current loan APR is pretty high for your scores you should look at refinancing that. Second loans are always iffy and often your income plays a large part in getting approved.

On a side note don't mention to any one that one of the cars is for your brother.. Cars are always for your self if your the only signer on the loan :smileywink:..
Valued Contributor
dodgerslv
Posts: 1,759
Registered: ‎06-16-2012
0

Re: 2nd Auto Loan Approval Chances


Project17 wrote:
They will most likely want proof of income so if you can only prove the $38k I don't see you getting a approved for a second loan for $45k.. Keep in mind often the apr on a second financed car is usually higher then the first. Your current loan APR is pretty high for your scores you should look at refinancing that. Second loans are always iffy and often your income plays a large part in getting approved.

On a side note don't mention to any one that one of the cars is for your brother.. Cars are always for your self if your the only signer on the loan :smileywink:..

i kinda had a feeling that i may have a hard time getting approved for that much...I do have about 8000 to give as down payment so will be financing less than 45K...The reason i had a high APR is cuz didnt have any auto loan on my credit report so was considered probably a first time buyer and at that time my scores were in the mid-high 600's. Will i have a better chance at getting approved for a lease?


Cards: (Citi x6) (Chase x5) (US Bank x3) (Amex x3) (Barclays x3) (BofA x3) (Cap1 x2) (WF x2) (Penfed x1) (Discover x1) (Sync/GE x4) (Macys x2)
Fico 08 scores (8/27/14) EX: 772 TU: 767 EQ: 778 (Utilization at 8% right now).





New Contributor
Project17
Posts: 137
Registered: ‎11-21-2012
0

Re: 2nd Auto Loan Approval Chances

I think either way you will have a tough time getting approved for a second auto loan with one currently open with less then a year of payments and no previous auto loans. Your income on paper just doesn't support those types of payments. You would need a co signer.. Can your bother co sign for you since you bought him a car?
Valued Contributor
Dustink
Posts: 2,980
Registered: ‎10-02-2012
0

Re: 2nd Auto Loan Approval Chances

Get the refi done. I always advise the shortest term possible, but in your case. You need the lowest payment possible. If the rate isn't much higher for 72 months on the refi, go with that. You may have some negative equity to deal with as well. How much did you put down the first time?

 

In the process of the refi, keep working on getting your down payment up.

 

If you can walk into the dealership with $10k down and bank statements that show some consistent large deposits. You will have a good shot at the second loan.

 

Do not settle for another high rate loan. I'm sure the buy rate on your first loan was much lower and the dealer was just lining their pockets. I was a first time buyer with mid-high 600 score's and also self employed. I got the dealer to give me promo financing at 0%.

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:21    


     $14k          $8.5K          $7.5k          $7.5k         $6.5k             $6k             $5k            $5k             $5k              $5k           NPSL       @ 0%
Valued Contributor
dodgerslv
Posts: 1,759
Registered: ‎06-16-2012
0

Re: 2nd Auto Loan Approval Chances


Dustink wrote:

Get the refi done. I always advise the shortest term possible, but in your case. You need the lowest payment possible. If the rate isn't much higher for 72 months on the refi, go with that. You may have some negative equity to deal with as well. How much did you put down the first time?

 

In the process of the refi, keep working on getting your down payment up.

 

If you can walk into the dealership with $10k down and bank statements that show some consistent large deposits. You will have a good shot at the second loan.

 

Do not settle for another high rate loan. I'm sure the buy rate on your first loan was much lower and the dealer was just lining their pockets. I was a first time buyer with mid-high 600 score's and also self employed. I got the dealer to give me promo financing at 0%.


yeah...when i started looking around at what other rates other people were getting with similiar credit profiles and i do feel like i got screwed by the dealership...oh well, lessoned learned. I may just hold off on the 2nd auto loan until next year. Was not in any rush, just wanted a smaller car for me and i was going by what i really liked. The Acura's will still be there next year so will try to refinance my current loan next month and go from there...


Cards: (Citi x6) (Chase x5) (US Bank x3) (Amex x3) (Barclays x3) (BofA x3) (Cap1 x2) (WF x2) (Penfed x1) (Discover x1) (Sync/GE x4) (Macys x2)
Fico 08 scores (8/27/14) EX: 772 TU: 767 EQ: 778 (Utilization at 8% right now).





Valued Contributor
Dustink
Posts: 2,980
Registered: ‎10-02-2012
0

Re: 2nd Auto Loan Approval Chances


dodgerslv wrote:

Dustink wrote:

Get the refi done. I always advise the shortest term possible, but in your case. You need the lowest payment possible. If the rate isn't much higher for 72 months on the refi, go with that. You may have some negative equity to deal with as well. How much did you put down the first time?

 

In the process of the refi, keep working on getting your down payment up.

 

If you can walk into the dealership with $10k down and bank statements that show some consistent large deposits. You will have a good shot at the second loan.

 

Do not settle for another high rate loan. I'm sure the buy rate on your first loan was much lower and the dealer was just lining their pockets. I was a first time buyer with mid-high 600 score's and also self employed. I got the dealer to give me promo financing at 0%.


yeah...when i started looking around at what other rates other people were getting with similiar credit profiles and i do feel like i got screwed by the dealership...oh well, lessoned learned. I may just hold off on the 2nd auto loan until next year. Was not in any rush, just wanted a smaller car for me and i was going by what i really liked. The Acura's will still be there next year so will try to refinance my current loan next month and go from there...


Can you get the first car paid off in that year. Make big payments and it will be paid off in no time.

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:21    


     $14k          $8.5K          $7.5k          $7.5k         $6.5k             $6k             $5k            $5k             $5k              $5k           NPSL       @ 0%
Valued Contributor
dodgerslv
Posts: 1,759
Registered: ‎06-16-2012
0

Re: 2nd Auto Loan Approval Chances


Dustink wrote:

dodgerslv wrote:

Dustink wrote:

Get the refi done. I always advise the shortest term possible, but in your case. You need the lowest payment possible. If the rate isn't much higher for 72 months on the refi, go with that. You may have some negative equity to deal with as well. How much did you put down the first time?

 

In the process of the refi, keep working on getting your down payment up.

 

If you can walk into the dealership with $10k down and bank statements that show some consistent large deposits. You will have a good shot at the second loan.

 

Do not settle for another high rate loan. I'm sure the buy rate on your first loan was much lower and the dealer was just lining their pockets. I was a first time buyer with mid-high 600 score's and also self employed. I got the dealer to give me promo financing at 0%.


yeah...when i started looking around at what other rates other people were getting with similiar credit profiles and i do feel like i got screwed by the dealership...oh well, lessoned learned. I may just hold off on the 2nd auto loan until next year. Was not in any rush, just wanted a smaller car for me and i was going by what i really liked. The Acura's will still be there next year so will try to refinance my current loan next month and go from there...


Can you get the first car paid off in that year. Make big payments and it will be paid off in no time.


I actually started sending double payments since January. Will try to send tripe if i can...lol.


Cards: (Citi x6) (Chase x5) (US Bank x3) (Amex x3) (Barclays x3) (BofA x3) (Cap1 x2) (WF x2) (Penfed x1) (Discover x1) (Sync/GE x4) (Macys x2)
Fico 08 scores (8/27/14) EX: 772 TU: 767 EQ: 778 (Utilization at 8% right now).





Valued Contributor
Dustink
Posts: 2,980
Registered: ‎10-02-2012
0

Re: 2nd Auto Loan Approval Chances

[ Edited ]

dodgerslv wrote:

Dustink wrote:

dodgerslv wrote:

Dustink wrote:

Get the refi done. I always advise the shortest term possible, but in your case. You need the lowest payment possible. If the rate isn't much higher for 72 months on the refi, go with that. You may have some negative equity to deal with as well. How much did you put down the first time?

 

In the process of the refi, keep working on getting your down payment up.

 

If you can walk into the dealership with $10k down and bank statements that show some consistent large deposits. You will have a good shot at the second loan.

 

Do not settle for another high rate loan. I'm sure the buy rate on your first loan was much lower and the dealer was just lining their pockets. I was a first time buyer with mid-high 600 score's and also self employed. I got the dealer to give me promo financing at 0%.


yeah...when i started looking around at what other rates other people were getting with similiar credit profiles and i do feel like i got screwed by the dealership...oh well, lessoned learned. I may just hold off on the 2nd auto loan until next year. Was not in any rush, just wanted a smaller car for me and i was going by what i really liked. The Acura's will still be there next year so will try to refinance my current loan next month and go from there...


Can you get the first car paid off in that year. Make big payments and it will be paid off in no time.


I actually started sending double payments since January. Will try to send tripe if i can...lol.


Nice :smileyhappy: good plan

 

I have been trying to make my payment weekly. It is a stretch, but a car payment is never any fun. The sooner it is over with the better.

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:21    


     $14k          $8.5K          $7.5k          $7.5k         $6.5k             $6k             $5k            $5k             $5k              $5k           NPSL       @ 0%
Established Contributor
sccredit
Posts: 836
Registered: ‎09-14-2012
0

Re: 2nd Auto Loan Approval Chances

If you have paystubs for your job plus business bank statements (I assume you run all business income through a business account?) you may be able to pull it off on a less expensive car.  $80k in car loans for a single person would be a bit frightening to any lender.  

Unsecured Credit: Amex BCP $24,900; Chase Sapphire Preferred $24,200; Discover It $12,500; Chase Ink Cash $15,000; Chase Slate $13,500; Citi TYP $12,900; Amex SPG Biz $3,000; US Bank Platinum $8,600; DCU Visa $10,000; Logix FCU $15,000; Citi Home Depot $8,800; Lowes $5,000; Care Credit $6,000; Penfed Platinum Sig $16,000; Barclay Arrival Plus WEMC $5,000; Bank of America World Points Business Visa $8,000; US Bank PLOC Overdraft $1,500; US Bank Edge Rewards Business $10,000; PenFed PLOC $5,000


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