topic Odds of getting a 20k + auto loan? in Auto Loans

Odds of getting a 20k + auto loan?

choppa02 — Sun, 27 Oct 2013 08:19:45 GMT

I make $2,300 a month and pay about $300 in bills per month I've been approved twice but for only 14k and 15k should I keep filling out apps or am I wasting my time? Btw both lenders pulled equifax 659

Re: Odds of getting a 20k + auto loan?

Anonymous — Sun, 27 Oct 2013 08:43:40 GMT

Please provide more information. Is this your first auto loan? If not, how was the other loan handled? Any baddies? What cc's do you currently have? What's your AAOA? Do you belong to a CU?

Re: Odds of getting a 20k + auto loan?

choppa02 — Sun, 27 Oct 2013 08:51:02 GMT

Yes this is my first auto loan,I have two co one pif and the other settled I also have two ca one pif the other isnt mines and im currently trying to have it removed... my aaoa is 4yrs and yes im currently in a cu they offered me the 15k but the car I want runs about 20k and up

Re: Odds of getting a 20k + auto loan?

choppa02 — Sun, 27 Oct 2013 08:52:32 GMT

Oh I do have four cc one of them is a store card and the other three are secured cards

Re: Odds of getting a 20k + auto loan?

Anonymous — Sun, 27 Oct 2013 08:55:22 GMT

With a first time purchase and current derogs your chances become limited. How much are you putting down?
Besides the CU, who else have you applied through?

Re: Odds of getting a 20k + auto loan?

choppa02 — Sun, 27 Oct 2013 08:56:36 GMT

Im currently at 2% util

Re: Odds of getting a 20k + auto loan?

choppa02 — Sun, 27 Oct 2013 08:58:22 GMT

2k down plus I have a car im trading worth 3-5k I also applied at a small dealership

Re: Odds of getting a 20k + auto loan?

Anonymous — Sun, 27 Oct 2013 12:43:08 GMT

Take the 15k loan or save up more money for a downpayment. Just be prepared for a high APR either way.

Re: Odds of getting a 20k + auto loan?

choppa02 — Sun, 27 Oct 2013 12:48:17 GMT

I don't mind the high apr, the plan is to just get the approval and refinance in about a year after the paid co and the paid ca drops off my reports.

Re: Odds of getting a 20k + auto loan?

blondy250 — Sun, 27 Oct 2013 19:44:36 GMT

Don't take this the wrong way, but your looking to get a car that almost 100% of your annual income. You really shouldn't spend more then 20% of your net monthly income on a car. If your a follower of Dave Ramsey he and others believe it shouldn't be more then 50% of annual income meaning if you make 50k a year the max car your looking at is 25k. Just my 2cents, but shady dealers will approve almost anyone just expect to be paying 20% interest.

Re: Odds of getting a 20k + auto loan?

choppa02 — Sun, 27 Oct 2013 20:12:19 GMT

Thanks blondy for the info I guess the odds are low. I'll probably look into getting a parent to co sign.

Re: Odds of getting a 20k + auto loan?

benandjerry — Sun, 27 Oct 2013 20:38:18 GMT

@blondy250 wrote:
Don't take this the wrong way, but your looking to get a car that almost 100% of your annual income. You really shouldn't spend more then 20% of your net monthly income on a car. If your a follower of Dave Ramsey he and others believe it shouldn't be more then 50% of annual income meaning if you make 50k a year the max car your looking at is 25k. Just my 2cents, but shady dealers will approve almost anyone just expect to be paying 20% interest.

There is a reason you were only approved for 14K and 15K, they think that is about the max financial load you can handle. Going beyond that is probably overextending yourself. Maybe not now, but a year down the line you may have way more bills for whatever reason....

You say you have a trade-in worth 3-5K? I assume it is still drivable then? I would suggest to keep this one for one more year, and set aside the payment you would be making if you would get the 20K financing. 2 advantages: you can see if you can handle the financial burden of that kind of loan, and after a year you will have a significant downpayment to make on your next car.

Anyway, just my 2cts.

Re: Odds of getting a 20k + auto loan?

choppa02 — Sun, 27 Oct 2013 22:27:33 GMT

Yes the car is def still driveable there are just lingering problems I was trying to avoid fixing.

Re: Odds of getting a 20k + auto loan?

choppa02 — Tue, 29 Oct 2013 03:29:31 GMT

I tried roadloans and got approved for 19k at 11%apr for 72 months.

Re: Odds of getting a 20k + auto loan?

Anonymous — Tue, 29 Oct 2013 03:53:20 GMT

@choppa02 wrote:
I tried roadloans and got approved for 19k at 11%apr for 72 months.

Yuck, what was the rate your CU offered?

With your downpayment and trade you would be up around the 20k mark with the CU loan. Plenty of great vehicles to be had for $20k.

Re: Odds of getting a 20k + auto loan?

choppa02 — Tue, 29 Oct 2013 04:30:38 GMT

CU was at 8.9%... I think im going to take roadloan offer and refinance with my CU next december when my two paid ca and paid co come off my reports, hopefully I'll be knocking on 680-700 fico by then

Re: Odds of getting a 20k + auto loan?

Anonymous — Tue, 29 Oct 2013 04:55:05 GMT

That's your choice but IMO a smarter choice is to go with the cu. Even paying the higher interest for a year is still money down the drain. Since you are a cash buyer, negotiate a better deal with the dealership. Make sure that they are not giving you sticker price.

As a pre-approved buyer, you are considered a cash buyer and you are in a stronger position to negotiate that $20 k down to $17k easy

Re: Odds of getting a 20k + auto loan?

choppa02 — Tue, 29 Oct 2013 05:08:36 GMT

The car I really want carmax has it and they dont negotiate

Re: Odds of getting a 20k + auto loan?

Anonymous — Tue, 29 Oct 2013 06:20:28 GMT

Given your circumstances, you should try to make some compromise on the car you want. Have you tried other dealers as well?

Re: Odds of getting a 20k + auto loan?

choppa02 — Tue, 29 Oct 2013 06:37:14 GMT

Yes I have but they are very few g37 sports in south florida it's weird, I only found two with very high mileage which is a no no. I found two that carmax has for sale that I like so its one or the other for me.