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Will I get approved for a 35k loan?

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Anonymous
Not applicable

Will I get approved for a 35k loan?

Hi I just turned 20 and have a FICO score of 732, but only around a year of credit history of light credit usage, using around less than 10% of my credit limit each month. I've never tried to get any loans out so far. I decided that I want to finance a car and was thinking maybe I should get a dream car. It's a used 2014 Lexus IS350 F Sport with around 20k miles. It's 37k before taxes so around probably 41k max for the car. I have around 9k and want to put down 7k (half for taxes and half for the car) and the other 2k for the dmv and insurance and stuff. That leaves just enough room for a 35k loan to get the car. My income is around 75k a year before taxes. I live at home and don't have any debts whatsoever. I'm looking to get an APR of under 10%. Is this all doable? Will any bank accept a 35k car loan? My only concern is not enough credit history.

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2 REPLIES 2
savingmoney87
Regular Contributor

Re: Will I get approved for a 35k loan?

Yes, many banks will do a loan for 35K if your income supports it. I personally wouldn't recommend getting a car that expensive as your first car loan. Your scores are great but you may have a thin file. A 10% APR is very expensive for automobile purposes. I make 75k a year and was very hesitant to just get a 20k car loan but YMMV. The thing about financing such an expensive car depending on your income is that many lenders will do predatory loans and some will allow you to extend a vehicle up to 72 months for repayment; however, with that long of a payment you'll more then likely end upside down on the car out the gate and for many years to come. I recommend against a purchase of a car that expensive; however, if it's within your budget and you can afford the payments at 60 Months or less, try Capital One and/or a local credit union. 

 

While I may strongly discourage you at this time to get that loan it doesn't mean you should never do so. Maybe purchasing an affordable car that holds it value well and then trading it in at a later time to ensure your rates are low by the time you purchase an expensive car would be a better suit. Good Luck. 





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Message 2 of 3
SamsungHDTV
Established Contributor

Re: Will I get approved for a 35k loan?

While it is possible to get approved given your profile, the two things you will run into are:

 

1. Thin credit file

2. No previous auto loan experience; which translates to most lenders wont lend more than $20K for first auto loan.

Message 3 of 3
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