10-17-2013 07:31 PM
First of all, thank you for anyone who can help me with this. And I'm sorry if my question has been answered before.
I'm looking into buying a slightly used or brand new Dodge Caravan. (I have3 kids, possibly another on the way) I'm looking to pay no more than $21k for the car brand new. I have about $10k to put down, and I want to pay all the financing fees, etc upfront (NOT roll them into a loan).
That leaves about $11,000 to be financed. I don't exactly know how it works, but I want that $10k to be taken off the top of $21k, then pay the other associated fees.
Am I missing anything here? This is what the big picture looks like:
Credit: My score is 624, but should go up a bit by the time I'm ready to purchase. I have a Cap.One CC that got charged off, but I paid it in full. I believe that is due to fall off in a year or so. I currently have a Secured CC from my bank, that I have been paying off completely the past 5 months. Those are the only 2 lines I have, and a couple of inquries.
Income: My income is about $17k/year, possibly a little more since I go full time for 2 1/2 months over the summer. I've been employed for about 5 years at this same job.
Collateral: Hopefully a brand new, 2014 or 2013 Caravan. (since they are so dirt cheap)
Loan amount & down payment: Hopefully about $11,000. I have $10k to put down, and also a trade in worth atleast $5k, possibly more.
Transaction type & loan terms: Purchase. Hopefully a 5 or 7 year loan.
The only co-signer I would have is my fiance, but she has horrible credit. She killed hers with her current car, has atleast a year of late payments. Although she does have a lot of credit history; student loans, CCs, etc.
Maybe it would be better if I co-signed for her? My credit isn't wonderful either, though.
10-17-2013 09:33 PM
If that's only one CO you got then i guess you fine.
45% down payment is good down payment
Credit score 624 you can get 6.99- 16.99 APR
inquiries not effected too much to installment loan.
income 17k/year = around 1420/month.Most of lender they like to see you makng 1k8/month is better.
3 Kids and house payment+insurant +Food+gas. With 1420/month how can you handle it?
Look basic of your picture i feel i cannot give you a loan if i work for your lender
Your fiance with that crazy going on. I guess it can't help and may hurt your change to get approve for that loan.
Go to any credit union near you and tell them your situation.They may can hep you
Final if you can't get that Loan then you need to think about used Toyota Sienna to fit your money.(save gas,easy fix,7 seat,big and easy handle)
10-18-2013 09:57 AM
I keep getting different answers. Check online, EVERYBODY says something different. No one really knows.
My Main question is this:
Maybe an Auto Loan expert or someone that works in a Loan department at a bank could chime in...Is there some percentage that Lenders look for when looking at loan amount vs income?
I'm looking for an $11,000 loan with $17,000/year (gross) income. Also have a limited credit history, score itself is 624. Is this potentally possible, or should I be looking at a lower loan vs income? I can always put more down or buy used.
Thanks for any and all input.
10-18-2013 10:22 AM
under 40-50% I believe on Debt to income.
since you have the cash down, I don't think you will have a problem because it's a good risk for them if you don't make the payment to repo a car that you paid 50% upfront... don't take a loan for longer than 60 months!
i would apply online for roadloans now and then you have something approved in hand and the dealership will most likely beat the rate, but don't tell them unless they say they are having issues getting you approved, then pull it out and be like fine I am approved... the tone with change... but I like to hold that in your pocket so they hopefully try to get you best rate without thinking they are competing but then if they aren't doing good i have backup. i don't want them to know i have 10% and offer me 9% when they might have been able to 4%.
10-18-2013 11:26 AM
IMO the income is ths issue, a 624 credit score is normally not an issue. You are right, you are going to get multiple answers! I would strongly think about a $10k used van but that is just my opinion.
10-18-2013 12:16 PM
Personally, I don't think I would be approved for ANY loan, unless it was something tiny like $3,000.
$11,000 is more than half of my yearly income. Plus, I only have 2 tradelines in my CR-one bad and one good, the good being a secured credit card with a history of 5 months paying on time.
Unless the fact that it would be a brand new van trumps my yearly income, if the bank had to repo it they could get more than $11,000. Thus reducing there risk? Just a thought.
The reason why I want something brand new or semi new is because A) you dont get much for your money these days, for $10k I'd get a 10 year old van with well over 100,000 miles.
Also, I've seen the damage that little kids can do...Also have seen the way people drive and beat the snot of there cars. I don't want that junk.
10-18-2013 12:26 PM
honestly with the credit profile you have INQ's will not hurt you at all so like Is aid I would apply at Roadloans.com... you should be able to put in the type of car you are buying... NEW and you can even run it without knowing how much you want and they will offer you what they can and it usually gives you options literally in under 60 seconds.... you can print all the documents instantly and go car shopping!!
10-18-2013 12:43 PM - edited 10-18-2013 06:47 PM
45% down is huge and a major compensating factor to any other issues. It's a good risk to the lender, as if you default, they actually make money.
624 credit is pretty bad, but you can get a loan, albeit at 12%+ Interest. You will be paying a lot of interest. Maybe as others suggested you should get a cheaper car.
When I bought my last car they didn't even verify income, and my credit sucked.
10-18-2013 07:39 PM
My income could be $40k/year if I combined it with my fiances, however she has horrible credit...It was like 519 last time I checked, she has a year of late payments on her current auto loan. BUT-she does have a lengthy credit history, a few student loans, various credit cards, etc all pretty good...just the car killed her credit.
I was originally going to have the loan in her name, this whole 624 CS is totally new, my score was like 570 5 months ago. All I did was open a secured CC and make payments.
I wonder if I could fix her credit up a bit, maybe getting it to atleast 600 then I could co-sign for her, unless that would just hurt our chances?
My score should improve in 6 months, infact that would be a year of my secured CC so I could sign up for a regular card by then!
I want to do all this with my taxes come March.
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