Looking to get new car - high income, some pretty significant credit dings

[earl804]

Some stats:

credit history 19 years

no judgements or bankruptcies

own my home, 30 yr mortgage in good standing

1 honda financial open loan in good standing (to be paid off and car sold 1st week of aug)

2 credit cards, 15k in total credit, 12k in used credit (being paid down - ran up balance for improvements to a rental propery i own) - about 500 paid down per month

12k installment loan in good standing

$1,000 left on student loans in good standing

The bad:

1 30 day late on honda 5 months ago

1 30 day late on mortgage 7 months ago

3 accounts from a prior bank in collection - currently being serviced, paying down 600 per month (we changed banks and i lost track of these accounts like an idiot)

as you can see, credit utilization of the open accounts is high

as a result of the recent collection activity, my score went from 670ish to 590.

I have 2 kids that are outgrowing my honda (a Fit - great car but small) and i am selling it to my parents who need a reliable little grocery getter.  we also have a pilot that is paid for, so i am going to get my wife a new car, and drive the pilot.

We are looking at the new Lexus IS 350, which will be about 46k.  I am putting 5k down, and plan on ordering one that will be ready late november.

I spoke with the dealership, and they said that they'd "get the deal done", especially considering my income.  I am fortunate enough to be an owner of a small business that paid my 230,000 last year, and i am on track to make 260,000 this year. While that is a large sum of money, i do  reinvest a good portion of my earnings back into the business, so i am not as flush with cash as it would seem.

Any reason to believe i wouldn't get financing?  The finance guy said that with my income they would be able to look past the recent collection activity.  I am hoping my score goes up to 620 or so by november, which should help a little bit.  My auto enhanced fico should be good as well, i've purchased several cars, and only had 1 30 day late (mentioned above).

thanks

[Walt_K]

Have you tried negotiating pay for delete agreements on the collection accounts?  Might be a little harder to negotiate since you are already in a payment plan.  People in the rebuilding forum may have some advice on that.