Auto Loans

[bluebird81]

Currently I have a credit score of 640.

I would like to buy a car with a pricetag of $30,000, the car is used, and I may be able to talk them down to 27K for the car.

I can put $6,000 down. and can afford a monthly payment of 500. 

I am not sure if I would be able to get financing. I was thinking of just going to a dealer and getting financing through them.

I am 28 yrs old, and have an OK income of 78k. Ive been at my current job for 2 years.

I just finished paying off a 5 year car loan 6 months early. I did have a cosigner for this loan. I wanted to get this other car on my own.

Can someone please let me know if I have a chance at getting financing for this car by myself, or with a cosigner? I would hate to go test drive my dream car and not be able to take it home.

[txjohn]

What other debt do you have (CC's, mortgage, personal loans)?

Do you have collections?

Any other derogs?

What is your DTI?

This info may help get you more accurate advice.

[bluebird81]

Hi Thanks for replying! I have 1 charge off. Wont go away for a while.

Other than that I have 1 credit card. No other loans no derogs. Not sure what a DTI is?

[txjohn]

DTI = Debt Tto Income.

Lenders have "comfort" zones for DTI.

What is your total debts & payments divided by your gross income = DTI

How old is your CO?  What kind of loan/credit was it?  How much was it?

Message Edited by txjohn on 08-01-2009 09:50 AM

[bigtim]

Generally, you should be able to find financing, although you're probably going to pay a higher interest. As john mentions, DTI is important, also, the lender will be interested in the BOOK VALUE of the vehicle so that after you make your down payment, the difference between the loan amount and the vehicle isn't so great so that if you do default, the bank isn't out so much... In other words, if the value of a vehicle is only 15K, and you want to borrow 25K to buy it, the bank will likely decline the loan.

Check with the lender you paid the last loan through, they may be a good option. Good luck.

[AskLew]

TO:  Bluebird81

Let me help you take the guessing out of your dilemma.  Do the following and your questions will be answered…

   1.  If you do not now belong to a local credit union, then find one and join it today.  If you need help in finding one you can join, contact the credit Union League in your state, they should be able to provide help to you.

   2.  Go to that Credit Union with what you just wrote above.  They will tell you whether they will finance you or not.  In addition, they will give you an APR and Loan Term.  Use those figures to compare the financing offered by the dealer.

Generally the financing offered by the dealer is a bit more expensive.  Nothing wrong with that, but walking in preapproved will give you a basis from which to compare.

Remember:  When buying your car, there is a tendency to extend the terms of the loan to get a lower payment…a most costly decision…for you!

Good Luck

Lew

[bluebird81]

Thanks to everyone! I was able to get financing after all (through the dealer). There were no issues. I did get a high interest rate at 12% which they mentioned can be refinanced after a couple of years. I think it's worth having the car of my dreams!

[clocktick]

What is this dream car you speak of?      

[bluebird81]

Its a black 08 Lexus IS 250. Its a dream!! 

[usmc58555]

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bluebird81 wrote:

Its a black 08 Lexus IS 250. Its a dream!! 

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yep definate wants not a needs.

Good luck with that $600.00+ car payment