Regular Contributor
Posts: 118
Registered: ‎08-13-2012

Trade in question

I am hoping to buy a new vehicle by Christmas but I have a few questions. I will be trading in my current vehicle that has over 220K miles on it. I have pretty much driven it until the wheels fall off. I'm hoping to get a few thousand more miles out of it so I can save up for my down payment on my new one.


My question is, will I be able to trade this vehicle in even though it is in my husband's name? His credit is worse than mine (although we are working on it) so the new car loan will be in my name. If we both apply for the loan will they go with his score since its lower?


We have had two previous auto loans. My car was in his name only but his truck is in both of our names. Both car loans had 6 30-day lates over the course of the 72 month loans. Both have been paid off for 2 years. Will this kill my auto fico?


The vehicle I want is about $35K and I'm hoping to have enough trade in and downpayment to only finance $25K for 48-60 months. DTI will not be an issue. My scores are still around 640 but I am paying down credit card debt right now and expect a pretty big jump when the credit cards are paid off. Utilization is currently 90%. Will be under 10% by the time I appy. Our new mortgage really helped my score.


Do you think I will be able to find reasonable financing? I was planning on dealer financing through Honda but my husband's work does have a credit union we could join. 

Starting scores 2/27/12 TU 605 EX 576 EQ 560
Current scores lender pull 9/6/12 TU 663 EX 629 EQ 645
Closed on our first home 10/26/2012!
Established Contributor
Posts: 566
Registered: ‎10-25-2011

Re: Trade in question

Yeah I think you can trade in your car even if its under your husband. I think all he needs to do is sign the title over. 


The late payments may hurt your auto fico, but having 2 loans paid off may help. No way of answering this question really. Its one of those YMMV situations.


I think you should be able to find reasonable financing. Try the credit union first, and several others at the same time. Then apply at the dealership last, as they like to beat rates. But make sure you do go into the finance office with independent financing. 


In my opinion, you should be okay. Your loan terms wont be the best, but they should be 'reasonable'.

I'm a personal banker and do a lot of auto loans serving the Houston area.
I suggest first time car buyers to read the sticky guide in the auto loan section.
I try to check these forums often, but if I missed your post, please feel free to message me with a link to it.

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