Auto Loan - High Credit Util 40%

[Anonymous]

Hi, I am hoping to get an autloan soon - we have a down payment of 20k, income of 110k and a dti of 34%. Credit Score 695, husbands score 690. However my credit usage is 40%  (22k) which I am working to get down but won't be able to all the way by the time the car comes. Total loan will be 37k for a 57k car. What are my chances?

[Anonymous]

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@Anonymous wrote:

Hi, I am hoping to get an autloan soon - we have a down payment of 20k, income of 110k and a dti of 34%. Credit Score 695, husbands score 690. However my credit usage is 40%  (22k) which I am working to get down but won't be able to all the way by the time the car comes. Total loan will be 37k for a 57k car. What are my chances?

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Ouch.

But yes, I think you'd get approved with that kind of money down to answer your question. 

I would think long and hard about this however. 20k could go a long way towards improving your overall situation beyond having a luxury vehicle sitting in your driveway depreciating.

[Anonymous]

Yes thank you. The vehicle is actually a van that we will be using to travel around the state's with our kids. So it will definitely be worth it. But you are right about getting that debt down. I no longer use any credit cards so I won't get into this mess again.

[Kree]

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@Anonymous wrote:

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@Anonymous wrote:

Hi, I am hoping to get an autloan soon - we have a down payment of 20k, income of 110k and a dti of 34%. Credit Score 695, husbands score 690. However my credit usage is 40%  (22k) which I am working to get down but won't be able to all the way by the time the car comes. Total loan will be 37k for a 57k car. What are my chances?

---

Ouch.

But yes, I think you'd get approved with that kind of money down to answer your question. 

I would think long and hard about this however. 20k could go a long way towards improving your overall situation beyond having a luxury vehicle sitting in your driveway depreciating.

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I agree, This loan sounds like it will be 1000/month in payments. give or take a few hundred depending upon interest and term length. Add in interest on unpaid CC balances,  and you could buy a cheaper vehicle with what you would be saving a month.

Plus, better credit scores.

[Anonymous]

1000/month for a 37k loan? Is thst because of interest rates?

[Anonymous]

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@Anonymous wrote:
Yes thank you. The vehicle is actually a van that we will be using to travel around the state's with our kids. So it will definitely be worth it. But you are right about getting that debt down. I no longer use any credit cards so I won't get into this mess again.

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I'm a big fan of buying higher priced vehicles that are a few years old and gently used at a fraction of the price. 

The car I wanted when I was 20 that would have come with a $500+ payment I bought 3 years old at 25 for a $275 payment. My best friend is still driving it with nearly 200k on the clock.

I would look and see what's out there just for fun. $15k towards your credit cards and $5k down on a $25k used van could have you enjoying those trips a lot more without excess debt weighing on ya

[Kree]

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@Anonymous wrote:
1000/month for a 37k loan? Is thst because of interest rates?

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Partially,

at 36 months, you pay over 1000 just in principal while each longer term increment will drop the principal, generally the longer the term the higher your % will be, so the payment doesn't drop as fast as one would assume when the term is lengthened. 

[Anonymous]

That makes sense, thank you for your help!

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:
Yes thank you. The vehicle is actually a van that we will be using to travel around the state's with our kids. So it will definitely be worth it. But you are right about getting that debt down. I no longer use any credit cards so I won't get into this mess again.

---

I'm a big fan of buying higher priced vehicles that are a few years old and gently used at a fraction of the price. 

The car I wanted when I was 20 that would have come with a $500+ payment I bought 3 years old at 25 for a $275 payment. My best friend is still driving it with nearly 200k on the clock.

I would look and see what's out there just for fun. $15k towards your credit cards and $5k down on a $25k used van could have you enjoying those trips a lot more without excess debt weighing on ya

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Totally agree! What will kill you the most is the stress of having all that debt.