Auto loan approval chances 42,000 loan with 8400 down payment

[mapyatt]

600 a month payment isn't an issue for me.

[mapyatt]

Income isn't the only decision with an auto loan, that's just one of the players. One lender might pay attention to it while another lender won't.  

[Luscher]

We are saying $600 on the low side. It will like be at least mid $600 IF you get approved. Although you have a good score you are still risky based on your income.

[Anonymous]

---

@mapyatt wrote:

Income isn't the only decision with an auto loan, that's just one of the players. One lender might pay attention to it while another lender won't.  

---

Is it fair to say your mind is already made up and that nothing we say won't make a difference?  I am saying this because of your responses. But the decision is entirely up to you of course...

[redbeard]

With your scores and 20% downpayment, you'll probably get the loan.  You have to really stop and ask yourself though, is it worth it?

You'll be spending a significant part of your income on a car.  I know this might be the car you really really really want, but will you want it so badly a year or 2 years after you get it and everything extra you make is going to the car payment, rather than some entertainment?  Or savings?

If you really want to get it, can you wait 1 more year to purchase it?  Save payments for an extra year to give yourself some cushion, just in case something happens.  Don't think you can wait a year?  What about 6 months?  If you put the $600 payment in the bank for 6 months, you would have 6 months of payments to fall back on in the event some life glitch happens (and they always do).

Any chance you are going to get a reasonable pay increase in the near future?  This would make it more palatable from those of us who have learned our lesson about stretching ourselves so thin.  It takes a LONG time to climb out of the debt hole that is so easy to fall into.

I'll say what others have danced around:

Whether you can get the loan or not isn't as relevant as to whether you should or not.  On your current salary, a $600+ car payment is not that wise.  Yes, I've done foolish things, this is how I know I wouldn't do this again.

Dan

[mapyatt]

The key to an auto loan is to shop around, all decisions aren't the same, all terms aren't the same. Two individuals could have similar info... the two ain't coming out with the same decision. My issue/question wasn't about payments, it was about a 42,000 maybe less auto loan with 20% down. 

[Luscher]

You also have to think down the road too, where will you be in the future, but I'm afraid that anything I will say to try and help won't even matter since your mind is already made up.

So yes you probably have a good chance based on score and down payment, but idk if that income is going to get you approved for a 35K+ loan with taxes and tags added in. + it may be higher then the $600 then we are estimating.

[mapyatt]

This auto purchase isn't planned until around the end of January early Feb. If I have no chance of obtaining the loan then I guess the decision is already made for me. I wasn't worried about the amount because I have safety net money available for hardship. I've had auto loans , used cars and this would be my first New car that I was looking forward to. The 2016 Maxima is my only like.... 

[SamsungHDTV]

---

@mapyatt wrote:

Hello all, I  have a quick question. First off my Fico scores are Equifax 739, TU 755, Ex 745....Auto 8 scores Eq 755, TU 766, Ex 760. I have 23,350 worth of revolving credit with 18% utilization. I make around 26,500 a year. What are my chances on a 42,000 loan with 8400 as a down payment? 

---

If you want me to guess with only the information you provided, which means I'm assuming all other factors are good, then I'd say your chances are good. You're above most minimum income requirement levels, scores are great, the LTV will be very ideal for a lender, and you had previous auto loan experience. I think its going to boil down to Debt-to-Income (DTI). Calculate this and see where you are with the new car payment. 

DTI = monthly gross / total monthly obligations (including new car payment). Use a auto loan calculator to estimate your car payment. 

Here: https://www.chase.com/auto-loans/payment-calculator

Really though, the general thread consensus is that you're spending too much for a car. Can you afford the car, yes very likely. They are thinking long term (what else can OP be doing with that money). You are thinking short term (spending 160% of your annual income on a depreciating asset). There are some 'rule of thumb' that you should spend only 50% of your annual income on your car, or other rules out there. You're off the charts on all of them. You probably weren't coming here to get that advice, but the community means well. We're just looking out for you.

[Anonymous]

First off, congrats on your scores, they are something to be proud of! In fact, your scores show that thus far, you have been very responsible. With that said, be responsible and don't buy a car that costs so much. Remember, you will be tied to this loan for many years. If something changes in your life, you become hurt or hospitalized and miss a payment or two, your scores will fall like a homesick meteor. Then things get even worse, you loose your job. Do you have savings set aside for several months of unexpected wage losses. Trust me, things happen when you least expect them. I don't care if you make 26k or 260k, poor planning and the unexpected can and will really mess things up. Do the right thing, keep saving, buy a cheaper car and resist the temptation for unnecessary costly lavishness. One last thing I can tell you from experience! A new expensive car is great for the first month or three. Once that new car feeling has passed and you have 60 or 70 more expensive payments left, you will ask yourself "why did I do this?" I have done this, TWICE! Listen to those of us that have made these mistakes. Great credit is priceless! The time and effort required to recover from a credit disaster, practically endless...