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07-12-2017 11:57 AM
Credit Score: ~760
Lenght of Employment: 4 yrs, however new employment at current salary
Previous Loan Experience: 1 Auto loan, student loans in repayment
Debt-to-Income (DTI): ~3%
Year of Car: 2015 Porsche 911
Purchase/Refinance: Purchase ~140k
Requested loan term (XX Months): 60
Down payment amount: 10%
I recently began a new job with a significant bump in salary. I am looking to get a used 911, with a price of around 140k. Will there be any trouble with lenders due to the amount of time I have been at my current job? Also, which lenders tend to be better with giving >100k for auto loans?
Also, I have about 5 different credit cards with a total of ~50,000 available credit, however, I only use one of the cards. Is there any drawback to closing the cards that I do not use?
I am fairly inexperienced with this stuff, and any input is appreciated.
07-12-2017 12:39 PM
07-13-2017 01:51 AM
I wouldn't close the credit card accounts, having them paid and active will help your score far more than paying them and closing them. With your scores and income I am sure you can get qualified, I would try to finance with Porsche themselves as most lenders that we are familiar with here have caps at 100k or less. Let us know how it goes, if you do some research on the Porsche boards you can find some guidance on negotiating discounts, I think last I looked most have been able to get about an 8% reduction from MSRP on the 911's. At 140k the stakes are high so the more information you have on price and finance the better, you should be able to find some information on Porsche Financial at the same boards. Rennlist is probably the biggest one.
Not that it's any of my business but you can usually find great newly used 911's and save a nice chunk of cash, people take great care of those cars which is really nice because there are always nice used examples available.
07-13-2017 12:42 PM - edited 07-13-2017 12:44 PM
If you only have five cards, that isn't alot and I strongly suggest you keep them open even if you don't use them. Lenders want to see you have experience with credit. So you don't lose anything by keeping them open.
Also, you never know when you might need to use credit. So having it handy can be beneficial in case of an emergency. In regards to the car, do you have a mortgage or any other debt?
07-13-2017 03:53 PM
I think we need a little bit more information, how much did you originally borrow on your current auto loan? Although you have the income to support the purchase, one thing to consider is banks/lenders like to see comparable credit. If you have never financed an amount similar to what you are looking to finance, you might see some issues there. Lender's like to see comparable credit when making a credit decision especially in auto lending. In my experience, say a person has a current auto loan with a 400/mo payment and is trading, most captive lender's will limit how much vehicle they can trade for, they may limit the person at a 550/mo max payment because anything more than that poses a risk as the applicant doesn't have comparable credit. I am not saying it is impossible, just many lender's will see alot of risk involved in this deal. USbank and many credit union's to name a few will finance "highline" vehicles above $125k. I suggest you start with trying to get an approval through Porsche Financial.
07-13-2017 04:42 PM
Thanks for the replies. I borrowed around 33k on my current auto loan, which is significantly lower than what I am looking to get this time. I understand what you are saying, and it seems like the only way I will know is to give it a try.
Workingfor850, this is going to be a CPO car. I cant justify paying close to MSRP for a brand new car.
07-14-2017 02:28 AM - edited 07-14-2017 02:30 AM
should be no problem getting approved with PF or US bank... normally with your DP, score and income
should be tier1..... why dont you just lease a new one.. 140k for preowned? is it a Turbo S?
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