02-04-2013 01:56 PM - edited 02-04-2013 02:02 PM
Yes, another one of these threads! Well, anyways I've been skimming through these forums for a couple months now, looking and reading the experiences others have had, in preperation of my next auto loan. So, I'll give a little background - I currently am 21, have a credit history around 2 and 1/2 years, 3 credit cards (500,750,1500 CL) and currently have a auto loan under my name, which was orginally financed through my credit union (10k at 6%). My 2 years of history is flawless ,only negative I have is 2 hard inquiries.... I am looking to get a newer vehicle, with less miles and a bit better MPG as I will be traveling quite a bit for college, I've narrowed down what vehicle i'm looking to try and obtain, which will have me asking for around 19k (2011/2012 vehicle) Annually I make around 21k base, not including bonuses. Currently have a credit score in the range of 680-720, haven't pulled my score recently, I will do it however soon.
I came to the conclusion that I Obviously have a short amount of history, and a very low income on paper for the loan I am asking. So, I then asked my father to be a cosigner. Which he has agreed, because he's seen my responsibily and etc... So what I am here to learn a little bit more about, is the chances of our combined application.... My father on the other hand, has a score around 650, a very long history - with perfect auto payment history, however has 1 collection reporting on his account, which was due to a previous divorce(really no need to go further). He has no hard inquiries reporting, however he has always been against credit cards... So he has only one that he uses very seldomly. Our combined income will be about 75k.
I have no other expenses monthly, other than my car/cellphone which is about $300 currently. My father owns his home, and has no current auto payment, so only pays for utilities and etc. My credit union (fairwinds) has been GREAT, they approved me for the first auto loan, with a rate that suprised me due to my lack of history, they also approved me for my largest credit card, without any hassles... So we are planning to get a pre-approval through them.
Sorry about the gigantic wall of text, I like to give as much details on the situation as I can, What I am asking for is advice, and/or someone whom might of had a similar experience. My concerns are as stated.. my history/income, and my father's 1 collection, and only have one CC reporting. I will be asking for a pre-approval for around 19k with a 2k down payment... thanks for any input guys!
02-04-2013 02:08 PM - edited 02-04-2013 02:11 PM
I think you shouldn't have much of a problem getting approved with those credit scores, and without a cosigner. I'm pretty sure a Credit union would offer you 1.9 for 60 months.
With your trade as down payment, and maybe a 65 month term at 1.9 I think your payment would be low enough On a 20k car to fall in line with the financing criteria.
Make sure once you do your first inquiry to buy soon after and not shop around for over two weeks. all auto financing inquiries with a two week period counts as one inquiry
hopefully your bonus shows on your pay stubs.
02-10-2013 02:42 PM
Well wish me luck, applied for the loan friday, will be getting a answer tommarow.... Reported a 675 exp score, and my father was around 640... So hopefully with our combined income, his history we can get this to go through.
02-10-2013 03:25 PM
02-10-2013 07:08 PM
Thanks for the input again Robert. I found the X5 I wanted a fully loaded 4.8 with low miles (20k) and its certified. I paid 48k for the truck, put down 20k and got a 8.9 rate through americredit/GM financial. Payment is right at 598, which is perfect, easy to pay and I drive off the lot with equity in the car. This was at BMW dealer in the NoVa/DC area. I was upfront with them on the phone and told what I have in terms of score, salary etc, and what I was looking for. The business manager was actually very nice and honest for a change in and out under 2 hours. He told me I got financed because of income, years at job, and have a large down payment, which makes the LTV low, plus the banks "like" the car. My new payment is lower than my current one which I make the payoff end of this month. I got approved with wells Fargo and cap one too but there rates were higher. Just plan and know your situation. I know I can make my payments just my score was killing me! Pick it up Thursday once they are done with all the certification work.
02-10-2013 08:23 PM
Congrats! Sweet ride!
Curious as to what your credit union offered. You do still have time to find a better rate, 8.9 isnt too bad though, but i figured CU would offer better. I got 5.9 with a 650 auto enhanced fico from DCU.
You could also wait til you get to a 700 and get 1.9 for sure.
02-11-2013 10:22 AM
Just to follow up, my credit union is being a little slow with the process, so I decided to get rates from 2 other sources... one being capital one. Was instantly approved for 3% over my choice of term s up to 25k!
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