I have great credit, 25% down on an inexpensive car, but DTI is high....
So I've been working to pay down my debt, and build my credit score over the last 6 months to put my self in a good posistion to buy a new car. I've decided on a Honda Fit long ago due to overall cost of ownership over a decade +, as well as the stadard features and room it comes with.
Although it is a cheaper car, I still expect to pay about 17,700 after its all said and done. I hope to get very good financing (the last Fico score I saw was a 749 EQ) and once I sell my car, I should be able to put at least $4k down. The one thing I'm iffy on is my dti, which is about 37%. I wouldn't mind paying a LITTLE more in interest, but will I even be able to get the second best rates? Or will banks be scared off?
I've never bought something I cant afford, the kicker is I calculated out how much per month my current car costs me to own, and the Fit isn't even that much more expensive, especially since I make semi regular trips to see my family 400 miles away.