topic Re: Auto Loan - Chances of Being Approved??? in Auto Loans

Auto Loan - Chances of Being Approved???

Anonymous — Thu, 12 Jun 2014 14:28:57 GMT

My Situation:

Credit Score As Of 6/5/2014 is 690 (Fico Score)

CCs & Limits: Target - $200; VISA - $500; Home Depot - $500; Discover - $4,500 (Total of $5,700 Credit Limit)

DTI/Credit Utilization will adjust to roughly 35% after 6/19/2014 and then 30% after 7/16/2014 after payments

Purchasing a 2011-2012 Honda Accord; Down Payment - $1,000; Loan - $20,000 (Purchase to be made 7/19/2014); Term: 60

Gross Mthly Income is ~$3,500

Length of Employment: 7 years at current job

AAoA: According to CK, 10 months...Oldest accounts are a little over 1 yr old

No Previous Loan Experience, No Derogatory Marks, No Late Payments, 1 Hard Credit Inquiry

Re: Auto Loan - Chances of Being Approved???

Creditaddict — Thu, 12 Jun 2014 15:39:46 GMT

Have you found the car yet? at honda dealership or other?

Are you a member of any credit unions?

Re: Auto Loan - Chances of Being Approved???

Anonymous — Thu, 12 Jun 2014 15:49:38 GMT

Yes I am a member of a credit union, State Employees Credit Union of Maryland. I will be looking to obtain financing from them. I have my eye on a few cars currently but I won't be making the purchase until next month. Also yes, from a Honda dealership.

Re: Auto Loan - Chances of Being Approved???

Creditaddict — Thu, 12 Jun 2014 15:53:22 GMT

@Anonymous wrote:
Yes I am a member of a credit union, State Employees Credit Union of Maryland. I will be looking to obtain financing from them. I have my eye on a few cars currently but I won't be making the purchase until next month. Also yes, from a Honda dealership.

Perfect, I would apply for pre-approval from State Employee a week before to make sure you have the answer from them and then when you pick out a car apply at the dealership without telling them you have approval from credit union already and see what kind of rates you come back at... I would assume state FCU will probably be better unless you pick out a certified Honda and then Honda might have a special APR that they could try to push for.

Re: Auto Loan - Chances of Being Approved???

Anonymous — Thu, 12 Jun 2014 16:01:31 GMT

Thanks so much for your input CreditAddict... I get so concerned about the requested amount and then the downpayment but I guess my worries are small in comparison to some of the other posts that I read. And I reallllllllly don't want a high APR.

Re: Auto Loan - Chances of Being Approved???

Creditaddict — Thu, 12 Jun 2014 16:06:37 GMT

I always go in saying no money down or I calculate in my head taxes and fees and give them a number close to that as what I had in mind for down payment.

if im leasing, I always ask for MINIMUM DRIVE OFF

Re: Auto Loan - Chances of Being Approved???

Remember0 — Fri, 13 Jun 2014 00:05:39 GMT

Wait, backup for me. You're planing to spend 21k on a 2011-2012 Accord? Could you please share the trim you're looking at (i.e. 2011-12 Honda Accord EX V6)?

I ask only because I helped a friend buy a 2014 Accord LX for 21k OTD. So 21k on a 2-3 year old Accord seems a little high to me...where is that figure coming from?

In terms of financing, start with your local CU if you want. Also if they do't give you <3%, try DCU. With a 690+, your rate at DCU should be 1.24% (with direct deposit).

Re: Auto Loan - Chances of Being Approved???

Anonymous — Fri, 13 Jun 2014 01:10:56 GMT

No... I plan to obtain the loan for $20k and be financed for $19k. Hence the down payment. The total includes tax, title and fees.

Re: Auto Loan - Chances of Being Approved???

Remember0 — Fri, 13 Jun 2014 01:16:21 GMT

That sounds a little better since you've included TTL. And this isn't the base LX model right, it's EX or EX V6?

Re: Auto Loan - Chances of Being Approved???

Anonymous — Fri, 13 Jun 2014 01:27:20 GMT

Correct...with mileage under 30k miles. The lowest mileage possible actually. The 2013-2014 models are above the price point of which I want to spend at the moment.

Re: Auto Loan - Chances of Being Approved???

Remember0 — Fri, 13 Jun 2014 01:41:07 GMT

Fair enough. The 2014 EX's will be nearing 22k+TTL probably esp if you want leather. I just wanted to make sure you weren't buying a base model 2012 LX haha.

So then yeah, my recommendation stands. Start with your local CU (preferably after the lower util reports). If they don't give you < 3%, try DCU. I'm pretty sure one of those two will allow you to get some very nice rates, but worst case if it still doesn't work then come back and maybe try like a BofA (but post here first if you get bad news (ie > 3%) from the CUs).