OK everyone, thanks in advance for any input and suggestions. My wife and I are going to apply for a new or used car in August and I want to know our likelihood of being approved at what rates. The reason we are getting a car is that my wife just graduated with her masters and landed a teaching position (i am still a grad student). So we will now need two cars. I will be as specific as possible with our info:
- TU credit scores: 635 (me)/ 610 (wife); checked EQ a couple months ago, was very close to TU score for both of us.
- The reason for our credit scores is mostly high utilization
- I have no lates in last 5 years, no collections (ever), no BK, abt 5k CC debt. (in both of our names)
- Wife has 1 late in last 4 years, no collections, no BK, and 4k additional in CC debt
- School loans are still in deferment
- total yearly income: 54K; we both work
- no rent (school pays)
- we have an auto loan (72 months) for over 3 years with no lates.
My specific questions to everyone are:
1.) approval chances?
2.) where should I apply? From these boards I have heard Capital One likes to give out money, as well as CUs
3.) Any idea of a rate ballpark?
3.)Used or new? I want an A to B'er, not a BMW
4.) does it matter which one of us is cosigner? my wife makes more but I have a slightly higher score...
I welcome hard evidence as well as opinions! 
@ejoshmo wrote:OK everyone, thanks in advance for any input and suggestions. My wife and I are going to apply for a new or used car in August and I want to know our likelihood of being approved at what rates. The reason we are getting a car is that my wife just graduated with her masters and landed a teaching position (i am still a grad student). So we will now need two cars. I will be as specific as possible with our info:
- TU credit scores: 635 (me)/ 610 (wife); checked EQ a couple months ago, was very close to TU score for both of us.
- The reason for our credit scores is mostly high utilization
- I have no lates in last 5 years, no collections (ever), no BK, abt 5k CC debt. (in both of our names)
- Wife has 1 late in last 4 years, no collections, no BK, and 4k additional in CC debt
- School loans are still in deferment
- total yearly income: 54K; we both work
- no rent (school pays)
- we have an auto loan (72 months) for over 3 years with no lates.
My specific questions to everyone are:
1.) approval chances? Very good. Assuming a modest downpayment.
2.) where should I apply? From these boards I have heard Capital One likes to give out money, as well as CUs CUs are a great options, but explore them, not all are equally lenient or offering the rates any better then conventional. You will probably also qualify for whatever manufacturer incentive is being offered.
3.) Any idea of a rate ballpark? No, I would expect under 10%, but rates are dependent on whats being offered and the car being bought. Used cars trend higher then new, new cars also can come with 0% deals.
3.)Used or new? I want an A to B'er, not a BMW You need to do you research. A one year old used car may be $14,000, but you are going to finance it at say 5.9%. A new car same model may be $19,000 but you get rebates, student rebates, and 0% plus full extended warranty so mabe the higher payment may be worth it.
4.) does it matter which one of us is cosigner? my wife makes more but I have a slightly higher score.. should you choose a credit union or local bank they will help you structure the loan request, should you choose a car dealership the finance people will help you structure the loan request.
I welcome hard evidence as well as opinions!
Thanks usmc! That makes me feel a lot better. The first time my wife and I went into a car dealership our credit was bad and we got an 18% rate. That experience really made me hate the car I drove 
Although our scores aren't where they should be, I would like to get a pre-approval so I don't have to deal with the dealership's financial crap. In other words, I don't want the dealership to make a dime on me 
Anyone else?
@ejoshmo wrote:Thanks usmc! That makes me feel a lot better. The first time my wife and I went into a car dealership our credit was bad and we got an 18% rate. That experience really made me hate the car I drove
Anyone else?
Umm, why? Are you going back to the same dealership?
Lets not forget the fact that YOU AND YOUR WIFE"S SCORES got you 18%.
Unless the dealership was a Buy Here Pay here, although there is a mark up in % rate (called spread) its not that you were offered 9.8% and the dealership upped it to 18% and kept the money (at least my state regulates spread, not sure if all do). You got the percentage rate you qualified for.
and.....Someone is going to make money on you.
I do recommend a preapproval, I recommed it to anyone, but a company does have a right to make a profit.
First customer I ever had was all ready to buy at 0%. Only when we ran his credit it started with a 5. He gets all abusive and mean to me that he is not getting his deal- I have n idea what to do, and a female salesman comes over and basically tells the guy we have nothing to do with whats on his credit report, if he is upset he needs to go to the mens room and yell in the mirror at himself.
I have never understood people that will happily go to a restaurant and pay $2.39 for a beverage that "cost" 19 cents, yet get freaked out when a business makes $1,200 in "profit" on a $23,000 transaction.
I don't want to get too off topic, so I won't go into the whole story, but the salesman and/or financial officer did ream me. Shortly thereafter I refinanced for a better rate. I don't want 0% I want what I deserve, nothing more and nothing less.
I know they will make a profit, I was being sarcastic. Hence the wink smiley...
BTW, I drink water...
Thanks for your feedback!
I'm a firm believer in certified pre-owned autos.
You'll save a wad of money by not being the first guy to drive it off of the lot.
As far as the rates go, put down as much as you can for a DP. A good rate shouldn't be a problem for you.
Good luck wih everything! 