Auto Loan Chances?

[Colorism]

Hi all. Thanks for reading and response. I'm wondering what your alls thoughts are on how likely I am to be able to get a car loan. I have had 4 previous successful car loans. The highest amount was 30k. I am wanting a car loan for 65k. My base income is 100k. 25k in verifiable bonus. DTI if I were to get the loan would come in at 28%. Credit history is 2.5 years. Revolving credit is 11k. Utilization is 25%. Credit score is 700. Total car cost 71k. Downpayment 6k. 

Interested in if anyone thinks I will be able to get an approval..

Thanks!! 

[Appleman]

We all enjoy giving free advice (really I do). However, you get what you pay for so continue to research on your own as well.

A few clarifications could help members on the board with providing feedback.

1. What is holding your score at 700? Not a bad score for sure but is there anything in there like lates, medical charge off?

2. So income is $125,000 and all verifiable? If so you are in great shape here.

3. Revolving debt is currently roughly $2,750? ($11,000 revolving credit X 25 % utilization is $2750 current debt) Paying this amount down so that you are only reporting a balance on 1 credit card that is between 1 and 9% of the available credit on that card. You can use the other cards but pay them off prior to the statement date. This will likely give you the biggest boost in score. Better score and you are more likely to get approved at a better rate.

4. DTI is 28%, should be good for lenders.

5. Paid auto loans show a good history. Hopefully no lated here.

6. $6,000 down is 8%. This might be enough, hard to say. My most expensive car was $50,000 and will likely never do that again! Kids, braces, cars, college and weddings.

$65,000 loan with a few example payments (warning completely made up interest rates)

3.5% 36 months $1904 a month

3.5% 60 months $1182.46

8% 84 months $1013.10

Finally, let us know how things work out and which car are you looking to purchase?

[Colorism]

Thanks Appleman for the response. 

1. I do have (2) 30 day lates. Last one was 9 months ago. 
2. Yes 125k all verifiable

6. I'm taking this opportunity to do this before all of that stuff you mentioned comes along. I can make the down payment as much as 8k if I need to

I have some concerns because the largest loan I've had so far is 30k and this will be slightly more than double that amount. I'm not sure if they well reject me because of going from a moderately sized loan to a large one 

I'm a car enthusiast. So this will just be purely for my enjoyment and apprepciation of well designed German engineering (everyone knows it has its faults as well). 

The car is a 997 911 GTS. This is a limited model that slots in right below the GT3. I'm wanting to get it now because anyone who knows the market on 911s will tell you the market fluctuates and will quickly price you out of being able to purchase if you don't get in at the right time. Just take a look at what a 1993 911 Turbo is worth today.. 280k. 5 years ago it was half that.

 
I plan to get the loan, and then sell my Audi TTRS in a couple months when it's paid off. I'll take the 30-40k in proceeds from that sale and refi the loan.

[Pway]

I am suggesting that a moderator move this to the Auto Loan section, where the op can get more advice on what to door how to go about purchasing their new vehicle.

[Colorism]

good call. yeah sorry, newb mistake. hopefully it gets moved

[takeshi74]

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@Colorism wrote:

I do have (2) 30 day lates. Last one was 9 months ago. 

Work on those.  Derogs tend to have a significant impact and hold one down as long as they are on reports.  Hit the Rebuilding subforum and see if there's anything you can do about them.  9 months is very recent.  You need to do whatever it takes to avoid them in future.  Make sure you're budgeting and sticking to it.  If auto pay would help then make use of it to ensure that at least your minimums are met.

Paymenty History is the biggest factor.  It needs to be 100% positive with no derogs.

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

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@Colorism wrote:

Utilization is 25%.

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Is that revolving utilization?  If so, that's under the generally suggested 30% max but that's far from ideal.  Get it down as low as possible.  If that's not just revolving utilization then break it out separately.  RU falls under Amounts Owed above and has a significant impact.

The question isn't really whether you can get an auto loan.  You probably could get one though I can't say that for certain as I'm not aware of the underwriting criteria of different auto lenders.  The real question is what sort of terms you would qualify for.  The better your credit profile the better the terms you qualify for.  You have two major factors that are impacted just by what I've commented on.  The revolving utilization is something that can definitely be addressed.  The derogs may or not be addressable but that's part of why you need to do whatever it takes to avoid them in future.  They tend to be significant red flags to creditors for hopefully obvious reasons.

6K seems like a small down payment but hopefully you've done the math and run the numbers for your budget.  For our Boxster S we put down $20K and had a $9K trade in which considerably reduced our financed amount.  The $1K -$2k car payments mentioned above just wouldn't be feasible for us.  You can't assume that you'd get those rates either.  You'd have to shop around and see.

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@Colorism wrote:

The car is a 997 911 GTS. This is a limited model that slots in right below the GT3. I'm wanting to get it now because anyone who knows the market on 911s will tell you the market fluctuates and will quickly price you out of being able to purchase if you don't get in at the right time. Just take a look at what a 1993 911 Turbo is worth today.. 280k. 5 years ago it was half that.

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Make sure you're accounting for total cost of ownership and not just the purchase price.  Buying the GT3 is just the start of your expenses.  I'm not really familiar with the TTRS or if it has similar costs associated with it.  We went from an S2000 to the Boxster and while costs for the Boxster were higher there have been similar types of costs.  Regardless of the present and potential worth of what you're buying you need to ensure that you're spending what you can reasonably afford.  If your revolving utilization is at 25% you should probably look into why that's the case and get it addressed first.

By types of cost I mean things like the maintenance, chewing through tires -- rears twice typically about twice as fast and with our 20" wheels selection is limited to a few pricey options, fairly frequent precision alignments (though that's in part due to our terrible roads here), and so on.  Make sure you have quotes for insurance, etc.  Do you have modes in mind even if minor?  Are you planning on adding tint, clear bra/film etc?  Do you have a budget to address non-warranty issues?  We had some minor repairs that had to be made to our Boxster when we bought it and had to replace the fronts.  We used that to our advantage in negotiating but make sure you're considering all of these sorts of costs.

Sorry if all that's obvious to a TTRS owner.  We don't know anything other than what you tell us.  You could be very aware of all this already.

[Colorism]

Takeshi74 thanks for the thoughtful reply! 

The 25% is revolving, but its also dropping. Thats a snapshot for this moment, not something that is carried consistently. A 1k car payment is no problem, as that is what I've been doing for the past several years. 

Thanks for the heads up about the associated costs. I'm aware of what kind of costs go into these kinds of cars including out of warranty work. The TTRS I have currently wears $1400 in tires, for example. Nevertheless, all good things to keep present in the mind at the time of making these kinds of purchases! 

[redshift1]

PenFed might be an option although the 700 score may be a problem with a 70K car. Looking at your income I'm guessing you should be able to pay down your debt quickly

and qualify for most any car you want..  I joined about a year ago and was recently approved up to 100K for a new car. That said my income is half yours but my Fico 8 is about 800.  

[Colorism]

Thanks redshift1! 

That's correct, I tend to pay things down quickly. I have my Audi loan through Penfed so I do have some established history with them. Thanks for the recommendation.