No chance of Auto approval?

[original1994]

Hello, I have been looking up various threads in this forum for a long time, it seems like every situation is different. I would like to know if someone can help me with my situation regarding an upcoming auto loan.

I am 20 yrs old, so only 2 years of credit history. 1 credit card(04/12), and 1 loan (06/12) (macbook). CL is $300, and the loan amount started with $1800 cosgined with mom. No lates on CC or the loan, No high balances on CC. usually get up to 100 or so. Been paying it off completely for the past 8 months. The loan amount is down to 300 I believe and will be paid of this June. 

I checked my credit report Aug 2013, and all my accounts were in good condition, showing no lates or any extra information in need of disputation. Unfortunately I never checked my credit score with the report, yeah silly me.

The problem: 14k annual income, working partime. Might have to have my dad cosign for insurance purposes, combined we make around 32k/ year. He has been in the US for 7 years, no cc just bills in his name. With few lates. So I know his credit is not up to par. Basically his name will be on app to increase the income and for insurance.

Loan amount: 20k, I know it's high for only 32k annual income. I was thinking if maybe paying 10k cash to the dealer and apply for the remaining 10k loan at my local CU.

Thanks for reading, please let me know if auto loan is out of the question given the details, and i should purchase a car with cash upfront or there is hope. Let me know if any info is needed to better asses the situation. Thank you.

[Remember0]

Bad idea to borrow 10k on a personal loan and use it as a dp imo. Just because the APR will be far higher vs. if you tied it all into the car.

You'll be approved. Maybe try a local bank/CU first before dealer.

By the way, the way to maximize FICO is to allow no more than 10% of the limit on that card report as a balance. So you have to pay it from 100 to 30 BEFORE the statement cuts every month. That way you statement balance will be below 30 every month. Eventually, you need to apply for one to two more cards to help build your history even faster.

I don't know if it's that smart for you to buy a 20k car with that kind of income to be honest. The APR won't be THAT great on top of it most likely. Have you considered a cheaper car? You can get lots of nice ones for much less.

[lambo003]

Speaking from experience I think you should use that 10k cash to purchase a car in full and just building your credit for now with credit cards. You can find a lot of nice cars that are reliable for $10k (Honda, Acura, Toyota Lexus) and will last you. Being that our credit history is similar you won't get the best loan out there unless you get really lucky and having high payments with your income will be stressful and may cause you to default on the loan or worst have it repossessed which won't do your credit score any good. Judging from the information you provided it sounds like you know how to handle your finances responsibly but I think you should buy a car in cash and then go under your father's auto insurance policy until your able to get a decent quote for it to be in your name. And +1 in regards to only having 10% of your credit limit reported. If you follow that rule you'll see a nice jump in your credit score by having $30 reported opposed to $100. Good luck with everything.

[CJIII29]

$10,000 cash will get you a decent used car.

[Remember0]

I second the buy a nice car with 10kk idea, but with your dad cosigning and a 10k dp, you will get a loan. Try applying at a local bank/cu though. A dealer will definitely get you financed, but having a rate helps prevent them from screwing you on the rate.