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Credit Score: EQ-700, EX- 701, TU- 726
AAoA: 2 years
# of positive trade lines: 18
# of negative trade lines: 0
Income: 15000
Length of Employment: 2 years
Previous Loan Experience: 40K of deferred student loans, no auto loans
Debt-to-Income (DTI): 28%
Year of Car: 2014
Miles: 0
Purchase/Refinance: Purchase
Requested loan term (XX Months): 60 months
Down payment amount: 2000
Co-borrower/Co-Signer: None
Other: First time buyer
Will a bigger down payment help me get approved without a cosigner? Also, will it help lower the interest rate? Even though my income is low, if my DTI is also low and I have a good down payment, is it possible to get financed for a car that costs about 12k-14k?
Try to find a co-signer so would have a higher chance or try credit unions.
MOst lenders have a minimum $2k monthly income
@sccredit wrote:MOst lenders have a minimum $2k monthly income
This. Check with lenders to see what their minimum income requirement is. They will vary by lender, but I suspect your income is too low to get approved on your own. I don't know how your DTI will look with the added car payment, but everything else looks great. If you cannot get a cosigner, you will stand a better chance with 72 month loan if you can find a lender that will lend at that income level.
Auto Credit Express - $1500
Road Loans - $1500
Capital One - $1800
Yes getting a car $12K-$14K is more than possible. With $2K down, depending where you are, can get a loan up to about $16K, maybe 17K.
Oh and with your scores, no income verify.
Some won't like that but that's just tough nuggles.
Thank you everyone for the advice! I'll definitely try a credit union, as I've heard about some students having success going that route. Fortunately I also have a year to figure some things out before I really need to apply!
Where are you located?
Hughes Federal Credit Union IMHO has the best First Time Buyer Program - https://www.hughesfcu.org/borrowing/vehicle-loans/first-time-buyer/
Why? Because they don't give you high rates automatically. The requirements are pretty basic as well. I think $1500 Gross is enough.
Otherwise try Auto Credit Express. They are a sub-prime lender but if you have no serious credit problems, you met the min income requirement and getting a new car around $15-17K shouldn't be a problem with your $2K down.
You should get a single digit interest rate. If you are ready and have everything to show proof of income, go ahead and apply. Car sales are typically slow in the early winter months.
It's a good time to buy.