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Income Required for $6000 Used Auto Loan?

Contributor

Income Required for $6000 Used Auto Loan?

Hi everyone,

 

Anyone have any idea what kind of income might be required (in case I'd have to show proof) to get a used auto loan in the amount of $6000 from a private party (family)? I'm planning to try for PENFED, NFCU, DCU, and maybe light stream + ally

 

Thanks in adance

3 REPLIES
Valued Contributor

Re: Income Required for $6000 Used Auto Loan?


yreva22 wrote:

Hi everyone,

 

Anyone have any idea what kind of income might be required (in case I'd have to show proof) to get a used auto loan in the amount of $6000 from a private party (family)? I'm planning to try for PENFED, NFCU, DCU, and maybe light stream + ally

 

Thanks in adance


Income proof usually is more dependent on the credit profile more so than the amount of the loan.  If you have upper 600's or higher scores and a history of an installment loan you are not likely to need proof of income for most lenders.  I haven't had to provide proof of income for either Penfed or NFCU for much higher loans than 6k but when my scores were lower years ago I had to for a much smaller auto loan.  

Gardening till 2018, Goal of 700's by the end of 2017
MyFico Scores Aug 2017: EQ 675 TU 695 EXP 698
Regular Contributor

Re: Income Required for $6000 Used Auto Loan?

It's near impossible to give a financial figure on how much you need to have for income. A general guideline is to have a DTI under 40%, and that is including the perspective new auto payment as well. That is for everything in your name (except utility gas/electric/water bills and insurance premiums), and is only factoring minimum payments.

 

You'd need to calculate your rent/mortgage, cc minimums, student loan payments, any current installment loans you may have, and also the payment for the one you will be getting. Add those together, and divide by your gross (pre tax) income, that will give you your DTI.

 

If your DTI with the new loan payments, and current obligations, is under 40%, you'd generally be in the clear, assuming you haven't had any BKs in the last 7 years and your score qualifies. Many places like to see previous auto loan history as well, or they may ask for a cosigner.

 

These are all general guidelines, but set in stone. They can vary per institution. I am a loan officer at a local CU.

In wallet: Citi DC, Discover IT, Chase Freedom, Blispay, and Bank of the West Cash Back MasterCard

Local CU (7,500) 11/15 | Discover (6,300) 03/16 | Capital One QS VS (12,000) 06/16 | AmEx BCP (24,300) 02/17 | Marvel MC (12,000) 03/17 | Citi DC (5,000) 03/17 | USBank Cash+ (5,400) 03/17 | Blispay (7,500) 03/17 | Chase Freedom (6,400) 03/17 | Bank of the West Cash Back MasterCard (4,000) 10/17
Contributor

Re: Income Required for $6000 Used Auto Loan?

Great, thank you both for the through replies, I appreciate it!

 

I'm going to calcualte my DTI, my Equifax is around 680 (EX and TU are in the 640s and 650s respectively). Ive had 3 auto loans in the past, the first two were always paid on time, no problem, the last one was a joint auto loan that resulted in repo (divorce) 4 years ago:/

 

I think I'll wait til my big balance on one of my accounts updates to 0 next month before I apply and just take my chances

 

Thanks again