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The downpayment is typically a percentage of the price of the car, 20% is what most suggest you aim for. If you don't have such a great score, your lender may require you put a certain amount down in order to give you a loan. Luckily, there are many other lenders around. Shop around for your car loan. You may be able to find one who doesn't require you put anything down (not a smart financial move IMO). You can apply for numerous auto loans in a short period of time (14-45 days depending on credit model) and they will be scored as only one inquiry.
Why are they only offering you $10K? All i see you posting is about your score. Score doesn't mean much if you have high DTI and low income. If your not able to save up the needed $2k down payment the CU is requesting maybe it's not a good idea to get this loan.
@Mike360 wrote:Why are they only offering you $10K? All i see you posting is about your score. Score doesn't mean much if you have high DTI and low income. If your not able to save up the needed $2k down payment the CU is requesting maybe it's not a good idea to get this loan.
+1
If you cant afford 20% down. You likely can't afford the vehicle.
Try going 6 months putting at least the amount of your payment in savings. If this is a challenge, then you can't afford the loan. If this is not a problem, then you can use the money you saved as the down payment.
What would you do if the same thing happened to the vehicle you are looking at purchasing?
Do you have money saved up to cover the costs of repairs? What if you lost your job, do you have savings set asside to cover the payments for awhile?
I would recommened that you save money and let your credit build a bit longer before you buy. Get your credit card debt down, then get some money in savings. You will need to wait for the new credit card blances to report anyways. So, that will give you some time to save.
If the CU gave you a good rate, you might want to reapply with them after the credit report has updated. Then go to a dealer and tell them your CU offered you x%. Ask them to beat it, you don't need to give them the details of the approval. Details being the amount of the approval or the amount of the down payment. Just tell the dealer how much you want to put down and the vehicle you want. $500 plus tax, tags, and fees would be a fine down payment if that is all you are comfortable with.
What kind of car are you looking to get? I would recommend you get something new, yet affordable, such as the Nissan Versa.
I know this post is really old. Good possibility no one will ever read this but I cancelled myfico for about a year. I have now resubscribed and was looking through my old posts and was reading thiis one. I just wanted to let everyone know my credit is still only like 20 points higher and I've had two decent cars since this.....you guys were negative as crap to me.Thanks you guys!