Will i qualify for an Auto Loan?

[bahbahd]

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@blazin4credit wrote:

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@Luscher wrote:
with short credit history you may need a down payment but they go by score, and 700 is tier 1 (for toyota at least)

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How much of a down payment do you suspect i may need? the car im looking to purchase is about $26,000

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You should look up the 20/4/10 rule.    https://www.google.com/search?q=20%2F4%2F10+rule   

20% down, four year loan (max), with total monthly payments/costs of 10% or less (ideally less) of monthly gross income.  Generally I would say at minimum you want to put down enough of a down payment needed to avoid having to pay any GAP insurance.  So, about $5,000 down in your case.

[blazin4credit]

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@bahbahd wrote:

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@blazin4credit wrote:

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@Luscher wrote:
with short credit history you may need a down payment but they go by score, and 700 is tier 1 (for toyota at least)

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How much of a down payment do you suspect i may need? the car im looking to purchase is about $26,000

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You should look up the 20/4/10 rule.    https://www.google.com/search?q=20%2F4%2F10+rule   

20% down, four year loan (max), with total monthly payments/costs of 10% or less (ideally less) of monthly gross income.  Generally I would say at minimum you want to put down enough of a down payment needed to avoid having to pay any GAP insurance.  So, about $5,000 down in your case.

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Thanks alot for the advice im sure some others will benefit from this information. The 20% down rule is advice i see used alot in various places i have seen searching for more information. The four year loan and 10 percent rule is one i have not come accross but should be helpful in evaluating my purchase. I was really looking for a 5 year loan because of the lesser payments but i will look to calculate both terms. Thanks

[Luscher]

how much you should put down is dependent on how much the dealer makes/wants you to put down in my opinion, especially if you get the 0 percent. But typically the more you put down the lower your monthly payment is. You really just need to go in there and see what they offer, if you don't like what the dealer offers, they can pull other banks for you, or you can go to a CU for a better rate.