Do I qualify for auto loan?

[krislee]

Credit Score: 746 (Discover FICO)

AAoA: ~3years 

# of positive trade lines: 6 (7 including closed account)

# of negative trade lines: 0

Income: $1,500/month

Length of Employment: 5months

Previous Loan Experience: N/A

Debt-to-Income (DTI): 0%? No recurring monthly debt

Year of Car: 2014

Purchase/Refinance: Purchase; $26,000

Requested loan term (XX Months): 60months

Down payment amount: $13,000~$15,000

Financing: $13,000 -  $11,000

Co-borrower/Co-Signer: No

Other: Financing through Honda. No other expenses. Never late on credit card payments and always pay in full. Planning on buying car in the next 3 to 5 months. 

Will I have to get a cosigner? 

[09Lexie]

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@krislee wrote:

Credit Score: 746 (Discover FICO)

AAoA: ~3years 

# of positive trade lines: 6 (7 including closed account)

# of negative trade lines: 0

Income: $1,500/month

Length of Employment: 5months

Previous Loan Experience: N/A

Debt-to-Income (DTI): 0%? No recurring monthly debt

Year of Car: 2014

Purchase/Refinance: Purchase; $26,000

Requested loan term (XX Months): 60months

Down payment amount: $13,000~$15,000

Financing: $13,000 -  $11,000

Co-borrower/Co-Signer: No

Other: Financing through Honda. No other expenses. Never late on credit card payments and always pay in full. Planning on buying car in the next 3 to 5 months. 

Will I have to get a cosigner? 

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No rent? pyts on your cc's?

$1500 a month with no prior experience might be difficult 

[coterotie]

Is the $1,500 gross or net?

Loan aps use gross 90% of time.  If you're working full time, I would find it hard to believe the 1,500 is gross ($9/hour)

Given the down payment etc. I think you would be fine without a cosigner especially in 5 months when you will have been on the job for right at a year.

[oscar_actuary]

Why in the world are you buying a car that costs about 1.5x your annual income ?

Given your savings and bio, it sounds like you live at home with the parentals; therefore, you don't have other responsibilities with the money.  This sounds to me like a horrible decision unless there are other circumstances (like you are married and the spouse makes $150k per year but you are trying to qualify on your own.)

To answer your question, I can't imagine being denied if you put that much down.  But then again, I don't know how they weigh the pain of repo'ing aganist the risk you dont' make the monthly payments - for which I would say you were not qualifiable under a more modest down payment.

[unusuallyconfused]

Do you qualify for AN auto loan? Yes. 

There are places that will finance you - but there's NO WAY you will qualify for the specific auto loan/financing that you're looking for.

Your major weakness appears to be your income and the amount of time on the job. You can get financed for an auto loan with that, but again, not even in the ballpark as to what you're looking for (unless you're willing and able to invest upwards of 30% to 50% down payment of the total purchase price).

So your choices might appear to be, at the moment:

1. Predatory sub-prime lenders who might get you close to what you want, but more than likely, the payments would be unaffordable (once they're done banging you for a huge rate of interest, unnecessary products/services, and so fourth).

2. Taking a step back and establishing a relationship with a credit union (DCU comes to mind, NFCU comes to mind if you qualify) and walk in or inquire to get an honest evaluation of where you are right now and what you want and see what they can do for you.

3. Wait. Get more time on job, at least try to bump your income up to 2k or more if that's possible and shoot for the car you want or...

4. Get ANYTHING that you can get right now with what you've got to use a qualifications for right now. Yeah, that might be a 10k auto loan or maybe even 15k but do that, and pay it off, you've got a good launch point to qualify for something better down the road.

It sucks to say "wait" or say "get something you don't want", but the reality is the reality.

Deep breath. Take a step back and evaluate the situation logically and see what you come up with yourself.

[coterotie]

Wow, the last two posts have been pretty ugly.  Did anyone actually read the OP.  Putting down 60% on the car.  No other debt, responsibly managed credit cards (no balances carried month to month) will have been on job for a year when applying.  Income likely mis-stated as lower than acutal income.  Lot's of criticism for someone who has saved a significant amount of their income and want to drive something  other than a beater.  Based on income looking at less than 20% dti on a new car.  My guess is the OP should get prime financing.  THey should also go into the dealership demanding the absolute best deal possible and be prepared to walk out the door if they don't get it.

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@unusuallyconfused wrote:

Do you qualify for AN auto loan? Yes. 

There are places that will finance you - but there's NO WAY you will qualify for the specific auto loan/financing that you're looking for.

Your major weakness appears to be your income and the amount of time on the job. You can get financed for an auto loan with that, but again, not even in the ballpark as to what you're looking for (unless you're willing and able to invest upwards of 30% to 50% down payment of the total purchase price).

So your choices might appear to be, at the moment:

1. Predatory sub-prime lenders who might get you close to what you want, but more than likely, the payments would be unaffordable (once they're done banging you for a huge rate of interest, unnecessary products/services, and so fourth).

2. Taking a step back and establishing a relationship with a credit union (DCU comes to mind, NFCU comes to mind if you qualify) and walk in or inquire to get an honest evaluation of where you are right now and what you want and see what they can do for you.

3. Wait. Get more time on job, at least try to bump your income up to 2k or more if that's possible and shoot for the car you want or...

4. Get ANYTHING that you can get right now with what you've got to use a qualifications for right now. Yeah, that might be a 10k auto loan or maybe even 15k but do that, and pay it off, you've got a good launch point to qualify for something better down the road.

It sucks to say "wait" or say "get something you don't want", but the reality is the reality.

Deep breath. Take a step back and evaluate the situation logically and see what you come up with yourself.

---

[Luscher]

You should have no problem, you have no debt and a lot of money to put down, I've done something like this when I first started out with no credit and I was fine.

[09Lexie]

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@coterotie wrote:

Wow, the last two posts have been pretty ugly.  Did anyone actually read the OP.  Putting down 60% on the car.  No other debt, responsibly managed credit cards (no balances carried month to month) will have been on job for a year when applying.  Income likely mis-stated as lower than acutal income.  Lot's of criticism for someone who has saved a significant amount of their income and want to drive something  other than a beater.  Based on income looking at less than 20% dti on a new car.  My guess is the OP should get prime financing.  THey should also go into the dealership demanding the absolute best deal possible and be prepared to walk out the door if they don't get it.

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@unusuallyconfused wrote:

Do you qualify for AN auto loan? Yes. 

There are places that will finance you - but there's NO WAY you will qualify for the specific auto loan/financing that you're looking for.

Your major weakness appears to be your income and the amount of time on the job. You can get financed for an auto loan with that, but again, not even in the ballpark as to what you're looking for (unless you're willing and able to invest upwards of 30% to 50% down payment of the total purchase price).

So your choices might appear to be, at the moment:

1. Predatory sub-prime lenders who might get you close to what you want, but more than likely, the payments would be unaffordable (once they're done banging you for a huge rate of interest, unnecessary products/services, and so fourth).

2. Taking a step back and establishing a relationship with a credit union (DCU comes to mind, NFCU comes to mind if you qualify) and walk in or inquire to get an honest evaluation of where you are right now and what you want and see what they can do for you.

3. Wait. Get more time on job, at least try to bump your income up to 2k or more if that's possible and shoot for the car you want or...

4. Get ANYTHING that you can get right now with what you've got to use a qualifications for right now. Yeah, that might be a 10k auto loan or maybe even 15k but do that, and pay it off, you've got a good launch point to qualify for something better down the road.

It sucks to say "wait" or say "get something you don't want", but the reality is the reality.

Deep breath. Take a step back and evaluate the situation logically and see what you come up with yourself.

---

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The suggestions given by unusuallyconfused ie establishing a relationship with a CU; was a good one IMO.  

Although most first time buyers are limited to loan amounts, OP is putting down a significant amount as a down,  I questioned the amount available for living expenses only because $1500 a month does not allow for insurance, gas, monthly pyt, cc (even though PIF) AND emergencies.

Is this a wise choice, the OP is asking wherher or not they would be approved not IF they should finance the car. 

Good luck if you decide to buy the car. 

[oscar_actuary]

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@coterotie wrote:

Wow, the last two posts have been pretty ugly. 

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I can't comment if the income stated is not accurate
But I can assure you, I'm not being ugly. 

[DaveSignal]

I have never had trouble getting an auto loan, even when I had much lower income and horrible credit. Auto loans are easy. There is always a lender that is willing to finance, even though it may not be the best terms. The dealers know how to find these lenders because they sell cars to all sorts of income/credit levels daily. But OP has good credit, no negative history, and is making a large downpayment. I don't think OP will have a problem.