topic Good credit, low income, co-signer auto loan question in Auto Loans

Good credit, low income, co-signer auto loan question

Anonymous — Fri, 12 Oct 2012 04:12:28 GMT

hello all!

so, i have a good credit score, but low income roughly 1k a month (hard to work anymore while attending full time classes)

the dealership came back to me saying my income was a little short, and they would like to see 2k a month for financing

would it be better to go with my dad as a co-signer, who has bad credit (500's), but high income

or

a friend who has good credit, but about the same income as me 1k/month

i know my dad cosigning would shoot my APR up

but, would the dealer take into account my friend cosigners income along with my own? 1k+1k = 2k (the requirement)?

Re: Good credit, low income, co-signer auto loan question

webhopper — Fri, 12 Oct 2012 21:15:51 GMT

@Anonymous wrote:
hello all!

so, i have a good credit score, but low income roughly 1k a month (hard to work anymore while attending full time classes)

the dealership came back to me saying my income was a little short, and they would like to see 2k a month for financing

would it be better to go with my dad as a co-signer, who has bad credit (500's), but high income

or

a friend who has good credit, but about the same income as me 1k/month

i know my dad cosigning would shoot my APR up

but, would the dealer take into account my friend cosigners income along with my own? 1k+1k = 2k (the requirement)?

You don't want your friend co-signing.... You really don't want your dad co signing either. It would be better if your dad co signed, rather than your friend.

co signing is a really bad thing to do.

Re: Good credit, low income, co-signer auto loan question

beautybrainsbooty — Fri, 12 Oct 2012 21:19:32 GMT

why don't you try getting a loan approved FIRST from a credit union, then buying your car. Dealerships can be so very tricky and will make you jump through hoops when you don't have too. IF you can avoid a cosigner then by all means work around it.

Re: Good credit, low income, co-signer auto loan question

Revelate — Sun, 14 Oct 2012 18:03:41 GMT

@Anonymous wrote:
hello all!

so, i have a good credit score, but low income roughly 1k a month (hard to work anymore while attending full time classes)

the dealership came back to me saying my income was a little short, and they would like to see 2k a month for financing

would it be better to go with my dad as a co-signer, who has bad credit (500's), but high income

or

a friend who has good credit, but about the same income as me 1k/month

i know my dad cosigning would shoot my APR up

but, would the dealer take into account my friend cosigners income along with my own? 1k+1k = 2k (the requirement)?

Welcome to the forums!

I'm not 100% positive on this but your dad's credit score may not hurt you at all. With mortgage any joint-application (and presumably co-signed too) takes the lower of the scores; however, on auto loans specifically as has been reported on this forum it's actually reversed: the higher of the scores is used.

Again take that with a grain of salt; in some cases, most notably a student, co-signing isn't a terrible idea. I agree though with Web family would be best; however, as a caution - absolutely make that car payment, it is never worth throwing away or damaging a relationship over co-signed finances. Skip the friend route absolutely.