Going to dealer tonight..

[cnelson]

I'll be visiting a dealer tonight looking to trade in my girlfriends 2004 Audi A6, we owe about 4400 on that. I'm hoping to get right around that number for the trade to just be free and clear of that. We are looking at a certified used 2011 chevy cruze. We had a tough time getting the first auto loan because of lack of credit.. But we have now had that auto loan for 1y 2m. No lates, or negitives ever on it. This loan will probably be in my name only, my current scores are EX 727 EQ 678 TU 709, which I think is fair.. I have 4 credit cards.. Best Buy 700 limit, 0 bal, Discover 2800 limit, showing 200 bal, but it is now 0 (paid yesterday) citi 4000 limit, bal 1800, (a little worried I know that is a bit high..) Also have a mortage of 1156 a month, however as of yesterday this was still not showing on any of my CR's even tho we have had the home since Nov 15th, not sure why it is taking so long.. No negitives on my report at all.

I mean, I feel as tho since I got a mortage getting a car loan shouldn't be such an issue.. However last time was a nightmare. My income is 38k, plus about another 8k in a private business (but I rarely use this when applying for credit) I was denied by Cap One, not sure why. Roadloans of course appoved it, but I have heard some bad stories about them, plus the interest rate of 16%! The current auto payment is 294 a month, and I am looking to get the new one for around 200ish a month, probably 48 or 60 with little or no money down..

Any red flags? What interest rate would be fair for somone in my credit situation? Thanks for the help! -Chris.

[StartingOver10]

Get an approval with a CU before you step foot on the car lot.

This gives you the upper hand when negotiating for a vehicle because you can then negotiate for the price of the vehicle without getting into the payment discussion because you already know what your payments will be at the CU. The dealer will try to beat the rate.

IMHO, consider waiting until your mortgage reports a few months after all you just purchased the house and your first payment probably wasn't due until Jan 1, 2014, right?

Having a mortgage show on your credit will put you in a better financial position - right now you have the inquiries and not the TL. It will also give you time to come up with some down payment and to pay down the trade. How much is your GF's vehicle worth?

[cnelson]

Thanks for the heads up, I have consider the CU idea.. Of course today being a holiday all are closed. Yes first payment was due on the Jan 1. I was surpised it wasn't reported yet but I do know it can take some time with them, plus it was already sold from Glendenning to M&T, didn't take long! lol.

I wonder is any CU do online approvals.

[StartingOver10]

Try DCU (Digital Credit Union). I haven't used them, but many on this board have and have been very happy with the results. https://www.dcu.org/

[cnelson]

Looks like there not in my area. Hmm, any thoughts on PNC or BoA what there approval rating are like?

[StartingOver10]

Read about DCU here in the forums. They do everything online. Read the experiences other posters have had with DCU.

As to PNC and BOA, the big box banks are considerably more difficult to work with than a CU. Once you have gotten approved through a CU for an auto loan, believe me, you will be amazed at how seamless and smooth the entire process is compared to big box banks and auto dealers. None of the games, quick and easy approvals.

[cnelson]

I was looking at them.. going through the app they ask you to choose a location, so I'm not sure how that works. I will call them tomorrow and apply over the phone. I'm not sure she is even going to this car, as I think it handles like a sports car, and she hates driving my Acura RSX, hehe.. But I'll let the dealer run me and see what he says, I'll tell him I've have a few approvals but am waiting to hear back from some more CU's. If he can get me a decent rate maybe I'll run with it, maybe not. I'll see what he says..

[diebadcredit6504]

Good luck.

[cnelson]

Thanks, I will update later this evening or tomorrow and let everyone know how it goes.. She loves the Audi A6 but is commuting farther to work after the new home purchase so we are looking for something better on gas. With that said if the dealer can't give me a good deal we aren't in a huge rush.

[Remember0]

Cap one should send a letter saying why they declined though it might be too broad to help.

I have a feeling it's DTI though. Assuming you applied only in your name and using 36k as income:

DTI = (1156+294+250 (the new cruze)+45 (Rough Credit Card minimum monthly payments based on what's reporting))/(38000/12)=55%

That's a little high for almost all lenders. I'm going to guess your Roadloans has a stip on it saying current car line on your credit has to be traded...but just a guess.

Personally I'd apply with your income as 46k (as long as you can prove the other 8k via bank statements or prior years' tax returns). That'd make DTI 46%, much more bearable for lenders in general. You might have to make your gf a cosignor on the loan for the DTI to get with the most prime of lenders. If her scores are decent, it might even help APR even more. If they are bad, it depends on the lender if adding her will increase APR.

Either way, keep us posted. Would love to see how this turns out. You're a perfect case study for a slightly high DTI situation if you app with the 38k and I'm really interested in what your outcome is regarding the bank that accepts the loan and APR.