topic Re: Auto Loan With Low Income in Auto Loans

Auto Loan With Low Income

Xocifymx — Mon, 23 Jan 2023 20:25:49 GMT

Dear Friends,

Is there a way to get an auto loan with an income of $1200 a month without a co-signer?

I spend less than half of my income on my bills and that includes a 10% monthly donation. I guess being a boring, grungy, raggedy Ole man helps with the spending.

I plan on putting down almost half but maintaining a few grand for emergencies.

I have an 783 FICO and a strong money management culture.

I thank you in advance for your courteous reply

Re: Auto Loan With Low Income

JoeRockhead — Mon, 23 Jan 2023 20:59:16 GMT

It's going to really depend greatly on what you're trying to buy, and how much you're trying to finance.

Re: Auto Loan With Low Income

Xocifymx — Mon, 23 Jan 2023 21:36:40 GMT

I primarily want a ~$30K '24 Chevy Equinox, my second choice is a $26K '23 Chevy Bolt both with about half down

Re: Auto Loan With Low Income

JoeRockhead — Mon, 23 Jan 2023 21:56:09 GMT

@Xocifymx wrote:
I primarily want a ~$30K '24 Chevy Equinox, my second choice is a $26K '23 Chevy Bolt both with about half down

It's going to come down to your DTI ratio with the car payment factored in. If your monthly debt obligations such as rent/mortgage, etc (things like utilities and groceries aren't included) and the new car payment are under, or around 36% of your gross income, then you should have a good chance of approval. If your DTI approaches, or goes over the 50% mark, your chances go down. But, being you're putting half the purchase price down could also possibly sway things in your favor, depending on the lender.

Re: Auto Loan With Low Income

Shooting-For-800 — Tue, 24 Jan 2023 03:37:09 GMT

If you have $10k in cash, they will find a way to finance you.

Make sure to watch that interest rate!

GL!

Re: Auto Loan With Low Income

fury1995 — Wed, 25 Jan 2023 19:51:12 GMT

A couple of quick questions first. What is your before tax (not your take home) income monthly? Are you paid a standard salary weekly / biweekly? Or are you hourly? Who are you banking with now? Is your down payment from your personal savings or from someone else?

Re: Auto Loan With Low Income

Xocifymx — Wed, 25 Jan 2023 20:06:22 GMT

$1,212 a month - $14,544 a year,

I am retired with a low income so I don't pay income taxes

Re: Auto Loan With Low Income

805orbust — Thu, 26 Jan 2023 13:15:52 GMT

50% down is a HUGE plus. I don't think you'll have an issue either way. That's a comparatively small amount of risk for them. I think you'll be pleasantly surprised. I would try to do a pre-qualification with your credit union or bank first. The dealer will for sure get you approved but of course pull your credit 30 times during the process (slight exaggeration there)

Re: Auto Loan With Low Income

Xocifymx — Thu, 26 Jan 2023 13:58:28 GMT

I have about $23K in loans that stay around 3% utilization, also my score was 823.

As I understand it, when we apply for an auto loan all of the lenders that they apply to in our name should count as one.

I have about seven hard inquiries 😕

I am waiting for the EV incentives program to get funding. They say that they will be giving up to $9K for a down payment and a few grand in rebates.

I think that it is on a first come first served basis

Re: Auto Loan With Low Income

Mdowning30 — Mon, 30 Jan 2023 21:02:46 GMT

It sounds like you should be in the market for a cheaper used vehicle thats a few years old, you can still find dependable used cars, do your research. Chevy isnt high on the lists for reliability, even brand new they dont make them the same anymore unfortunately.

Re: Auto Loan With Low Income

Xocifymx — Thu, 26 Jan 2023 18:15:14 GMT

I would prefer to fix up my '02 Toyota Sienna instead of buying a used car.

I want an Chevy Bolt EV or a Chevy Equinox, and they cost more when they are used because people don't want to wait for months to get their car.

Please don't try to talk me out of getting an EV If you are not highly electromechanically knowledgeable and experienced and real unadulterated facts.

I am, and I have been researching it daily for years, and I am quite familiar with the EV Haters talking points.

Re: Auto Loan With Low Income

fury1995 — Fri, 27 Jan 2023 01:28:04 GMT

@805orbust wrote:
50% down is a HUGE plus. I don't think you'll have an issue either way. That's a comparatively small amount of risk for them. I think you'll be pleasantly surprised. I would try to do a pre-qualification with your credit union or bank first. The dealer will for sure get you approved but of course pull your credit 30 times during the process (slight exaggeration there)

Not necessarily. Most indirect lenders have strict income guidelines for single applicants. I don't know of any that will approve with that income regardless of equity. Lenders are watching applications closely for inaccuracies, specifically income alterations... especially in the current used car environment.

Re: Auto Loan With Low Income

Xocifymx — Fri, 27 Jan 2023 04:52:18 GMT

I read an article where someone complained that they make $100K a year and they live from check to check as if the problem is that the pay is too small and not their over spending.

Then I seen a similar story with $300K, I was shocked because I pay my bills before my little pay is deposited.

I have been de-programming myself from the very powerful marketing program that is developed by psychologist and confidence men.

We spend a lot of money on things that does nothing good for us, we buy veneers and gift boxes with the best gift wrapping but has nothing good inside.