topic Re: debt-to-income in Auto Loans

debt-to-income

dalasdon — Thu, 02 Feb 2012 02:40:52 GMT

how much does dti weigh in getting a car loan?

Re: debt-to-income

brian2220 — Thu, 02 Feb 2012 03:25:52 GMT

@dalasdon wrote:
how much does dti weigh in getting a car loan?

us bank told me 40%

30% income

30% credit history

Re: debt-to-income

dalasdon — Thu, 02 Feb 2012 03:44:25 GMT

i make 41K, is it out of reach to purchase a bmw financing 33k?

Re: debt-to-income

pizzadude — Thu, 02 Feb 2012 03:49:34 GMT

What are your current monthly obligations ? Mortgage, Rent, Debts, etc.... ?

Also how much are you planning on putting down ?

Re: debt-to-income

dalasdon — Thu, 02 Feb 2012 04:00:07 GMT

monthly obligations are 1300, nothing down if they allow, or 5k

Re: debt-to-income

pizzadude — Thu, 02 Feb 2012 04:13:06 GMT

So your gross monthly income is around $3,400....

Montly obligations of $1,300..........And a 5 year loan at 6%, borrowing $33,000 would have payments of ~$638.

This would give you $1,938 in payments per month, this is 57% of your gross income.....

That might be a bit on the high side and wouldn't leave you much to live on.

Re: debt-to-income

dalasdon — Thu, 02 Feb 2012 04:24:55 GMT

well i work all the time, lol, im sure thats not going to convince a finance manager. so i need to get it down? i guess starting with a lesser value car, 25k paying off in 2 years

Re: debt-to-income

pizzadude — Thu, 02 Feb 2012 05:00:19 GMT

@dalasdon wrote:
well i work all the time, lol, im sure thats not going to convince a finance manager. so i need to get it down? i guess starting with a lesser value car, 25k paying off in 2 years

lol, yeah they would probably be happy to sell you the car, who needs food right ??

I think its a good idea to look for something less expensive.....Or if you could save up more for downpayment that would help as well.

Re: debt-to-income

Anonymous — Thu, 02 Feb 2012 15:40:17 GMT

Most lenders do not want to go over 50% DTI in total.

Re: debt-to-income

CS800 — Fri, 03 Feb 2012 02:48:29 GMT

@Anonymous wrote:
Most lenders do not want to go over 50% DTI in total.

So many people out there with DTI's above 50% in this economy.

Re: debt-to-income

Anonymous — Fri, 03 Feb 2012 13:38:50 GMT

Not disagreeing with you at all, but I am a CPA on the audit side of things in public accounting, and most of our car dealership f&i guys inform us that 50% DTI is where they are comfortable. Anything more, they want more assurance than just a credit score (i.e. cash reserves, strong car history, time on job, etc.)