Chances of getting approved on a new auto loan with score of 545? Do I have to co-sign?

[Anonymous]

I'm not sure if any manufacturer or dealer warranty a vehcile has, would still apply if not purchased originally by me. 

Yes.  If there is still original warranty left on a vehicle when you buy it used, then that warranty remains in effect.  The warranty is tied to the vehicle, not the owner.

There are a few cases where the warranty will not remain in effect - and these are cars you shouldn't buy, anyway - for example, if the vehicle was in a major accident (then the massive repair work done on it may void the original warranty); if it was being used for street racing and the manufacturer already replaced all or a large part of the engine and/or suspension (they will void a warranty immediately if there is evidence the car is being used for racing); the previous owner caused massive damage from not changing oil or other routine maintenance which the manufacturer has already repaired (the warranty is voided due to lack of owner maintenance).  Good research on any used vehicle - not simply trusting the dealer-provided CarFax report, those things are a hit or miss as information sources - will help you avoid any of those and you will receive the remaining original warranty, if any, on the vehicle.

The above advice about CPO is solid too - a CPO vehicle will have been granted a new "extra" warranty at the time it is certified.  Be careful with these, though, and know this: a TRUE CPO must come from its own manufacturer.  That is, if you see a "CPO" Toyota 4runner at a Chevy dealer, then that is not a true CPO - it would have to be at a Toyota or Lexus dealer.  True CPOs have undergone an extensive testing and refurb program from their own mechanics, and have been certified to perform like a new car.  They are late-model (most programs limit CPO to about 3 years of past models) and they must have no evidence of collision damage, lack of maintenance, or flood/weather damage, as well as passing the checklist (typically about 100 items, some lists have 150) of mechanical and electronic functionality.  The only real loophole to look out for is that an off-rental vehicle can still be certified if it has never been wrecked and has passed all of the requirements, so ask about prior ownership to avoid these, if you are leery of such vehicles.  [I once bought a CPO off-rental car and drove it for seven years before trading it in, with no serious repairs needed.]

[Anonymous]

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@Sk323i wrote:

primarily going for the new Toyota 4Runner... as we have had good experiences with Toyotas in the past.

We are tired of paying for maitenance on used cars. 

We are eager to have a new vehicle and keep it in extremely good condition and put very low miles on it really. Something that can be kepy long term, retain its warranty for the full 5 years, and be paid off eventually while still being a good quality vehicle.

I did see some 2 year old models for under 30K -- i'm just worried that they are 40K more miles closer to starting to have problems with regaulr things that need to be replaced. I'm not sure if any manufacturer or dealer warranty a vehcile has, would still apply if not purchased originally by me. 

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If the vehicle is being sold with factory warranty intact, you are ok.  The dealer HAS to  tell you this--i.e. they will probably have a sticker on the vehicle that will denote if it comes with remaining factory warranty or sold "AS-IS".  If with warranty, you should also be able to go to the manufaturer (probably through the dealer) and purchase an extended warranty.

I can understand and relate to wanting a car with a warranty.  My first car was a piece of junk.  I was too young and ignorant to know any better.  I replaced everything in that car but the engine.  I vowed I would never buy another car unless there was a warranty.

[StartingOver10]

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@Sk323i wrote:

primarily going for the new Toyota 4Runner... as we have had good experiences with Toyotas in the past.

We are tired of paying for maitenance on used cars. 

We are eager to have a new vehicle and keep it in extremely good condition and put very low miles on it really. Something that can be kepy long term, retain its warranty for the full 5 years, and be paid off eventually while still being a good quality vehicle.

I did see some 2 year old models for under 30K -- i'm just worried that they are 40K more miles closer to starting to have problems with regaulr things that need to be replaced. I'm not sure if any manufacturer or dealer warranty a vehcile has, would still apply if not purchased originally by me. 

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^^^Getting a new vehicle doesn't mean you don't maintain it.  It just means that you have a warranty. And, as pointed out, you pay significantly less for a CPO than for a new vehicle.  The warranty covers some things, not everything, even on a CPO.  My last vehicle was a Toyota Venza (CPO btw) and it was about 1 year old when I purchased it - it had the remaining manufacturers warranty and has treated me very well. I saved more than $10k on the purchase just because it was 1 year old and had 23k miles on it when I purchased it.  I treat it well too.

To treat your vehicle well, you have to maintain it per the schedule in that little book that comes with the car in the glovebox that no one reads! If you think you are buying a maintenance free vehicle, then you have the wrong idea.  You still need to do the little things- oil changes on a regular basis.(BTW, those freebie oil changes that the dealership throws in when you purchase a vehicle are not free - it means you didn't negotiate well on the cost of the vehicle. )

With your GF getting $2500 per month gross for her income, a $37k to $40k vehicle is totally out of the guidelines for any vehicle loan with only $4k down. The exception would be for a subprime loan designed for failure.   

Even with your additional income of $4000 per month, you would end up in a world of hurt with the likely payment based on the scores you both have.

There is another issue too:  let's say you are successful and she gets this high priced vehicle loan for 6 years, it would kill any chances you have for a decent mortgage as your disposable income is used up by paying for the auto loan.   In fact, it probably would impede getting any mortgage at all. Remember on both the vehicle loan and the mortgage the lenders are using your DTI to calculate your allowable payments. If you have a high vehicle payment it takes away from the payment you can have for a home because it uses up the allowance figured for your max total debt ratio. It would suck to get the vehicle you want and then not be able to purchase a home. I see that scenario all the time (I'm a Realtor and people come in with two high car payments in a 2 person family that preclude any mortgage). 

I agree with the others:  fix your scores and come up with a budget for both the house and a "new to you" vehicle. There is nothing wrong with a CPO vehicle at all, especially if you are saving thousands.