If you have too much debt and all your credit cards are maxed out, they will either decline you or ask for a big down payment, because you'll look like a big risk to them. If your debt to income ratio is 30% or less, this is good. Lenders seem to be more concerned lately with payment to income ratio though. Some auto lenders won't approve the auto loan if this ratio is above about 10 to 15%, meaning your payment can't be more than 15% of your gross pay, for example. Jean Chatzky of the Today Show explains DTI ratios and how they apply to auto loans below.
http://www.autoloandaily.com/loan-news/featured-articles/1898-financial-reality-check-is-a-must-befo...
