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New Member
Posts: 4
Registered: ‎02-20-2013
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first time car buyer with credit history

I am a first time car buyer. I am looking to get a toyota camry hybrid for 24k. I am putting a down payment of 16k on the car. There is one bit of a snag that i am concerned about. I only make 17k a year. This low income i believe will scare lenders...even though this is a good loan.

I have one credit card with a 2000 dollar limit with a zero balance. I have had this card for 24 months. I also have a macys store car for 200 bucks with a zero balance for 30 months. I also have an installment loan that is 46 dollars a month with a 900 dollar balance.

I am keeping this open to maintain a better score. I havent checked it recently.


My main concern is.... With a huge downpayment that i am putting on what is the likely hood that i may get approved for more than 50% of my income and for how much realistically? I also live with parents and dont have rent?

Would love to hear from people who process loans or works with a dealership. Thanks
New Member
Posts: 4
Registered: ‎02-20-2013
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Re: first time car buyer with credit history

I know most first time buyer programs are limited to 50 percent of income. I am a college student with pursuing a bachelors. Also have two student loans totalling 9k... Which i would rather pay after i graduate... That are in deferrment.
Contributor
Posts: 193
Registered: ‎04-01-2012
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Re: first time car buyer with credit history

One year's salary as a down payment?? Yikes. At 17K a year, unless you live at home and this isn't your "real job" (aka: you're just making some side cash while going to college) don't buy a 24K car.




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New Member
Posts: 4
Registered: ‎02-20-2013
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Re: first time car buyer with credit history

Thanks for not answering my question. Having worked at my same employer for 2.5 years i was able to save up a decent sum. I have no car payment... Drive a 1992 camry and have saved up from wages, tax returns, gifts, and selling items for cash.
This doesnt include my 401k balance of 4k and my money i have in my checking. I personally know kids in collegw who have saved up more than what i have by working at a grocery store while going to college so
Please spare me your judgement... I just wonder if there are first time buyer programs that will waive their requirements if a huge down payment comes into play
Contributor
Posts: 193
Registered: ‎04-01-2012
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Re: first time car buyer with credit history

Calm down, no one is judging you. I didn't see that you were a college student - saving up 16K as a student is great and getting a car for 24K is fine. I thought you were a post-college adult making 17K per year and wanted to use 16K as a down payment - that seemed like a bad idea to me. In this community, if you posted information and want answers you should expect members to sometimes ask more questions or give advice. Don't get so riled up when we do.

 

To answer your question, you don't need to specifically go to a first time buyer program. I just applied with BoA as a first time auto buyer, no mortgage, etc. and was approved with their best rate online instantly. Try your local credit union too.




Starting Score: 583 (CreditKarma, 2009)
Current Score: 783 (Walmart Free FICO, March 20, 2012), 774 (Equifax, BoA Pull, 2/20/13)
Goal Score: 800+


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New Member
Posts: 4
Registered: ‎02-20-2013
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Re: first time car buyer with credit history

I will take a look at bank of america or capital one. I dont have a thin file so to speak trade wise... I was always under the impression that if you never had a car or mortgage in your credit report you would always fall under "first time car buyer guidelines" which is 50 percent of annual income. I will definitely take a look at boa.
Established Contributor
Posts: 662
Registered: ‎02-20-2013
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Re: first time car buyer with credit history

I recommend a trying your local credit union. Or even trying to join one like DCU. They may be more lient that tradition venues.


DCU ( pulled 3/29/13) EQ04 683 | Amex (pulled 3/28/13) EX 760 | US Bank (pulled 3/28/13) EX 753
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Inquiries (4/18/13) EX 13 | EQ 13 | TU 14
Valued Contributor
Posts: 3,099
Registered: ‎10-02-2012
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Re: first time car buyer with credit history

USAA just approved me at a great rate as a first time buyer.

 

Subaru thinks they can offer me their 0% rate, and they did not mention the 50% income restriction.

 

Side note.

 

The NIssan dealer by me was offering a Leaf for $129/month lease.

 

That might be something for you to look at. You would get to keep that money you have saved up, plus you would save money on gas. As long as you don't have to drive long distances then it could work well for you. Keep the Camry around for road trips and use the Leaf as a daily driver.

 

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:23    


     $17k       $8.5K          Closed          $19k      $6.5k        $24.2k        Closed         $5k       Closed     $8.5k        Closed      @2.49%
Established Contributor
Posts: 760
Registered: ‎02-11-2012
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Re: first time car buyer with credit history

I can not see why you won't get approved. Over 50% down, the finance companies will love you. Don't extend the repayment to long, but not too short either. You can always prepay your loan if you have extra money. Good luck, time is your best friend. You are just beginning your credit journey and doing very well. P.S. you did not mention if you still had emergency reserves. Probably not good to empty the savings with the current low interest rates. Also be sure to have enough cash to pay for sales taxes, licenses, and one year of vehicle insurance.

Starting scores 01/02/2012 EQ 707(Fico) TU 733(Fico) EXP 735 (FAKO)
Updated scores 06/01/2014 EQ 797(Fico) TU 768(Fico) EXP 769 (Fico), EQ 849 (Next Gen 5/27/14 Penfed)


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