First Car Loan, Low Income

Anonymous — Sat, 30 Aug 2014 02:55:08 GMT

I really do need a car, my current is on its last leg, and would cost more to repair than it’s worth.
Where I live there is not much public transport (South Dakota), so that’s not much of an option for me…

Credit score of 724 Equifax, 713 TransUnion
100% on time payment history, no negatives on my credit report

My Debt:
$5.5k credit card balance ($22.2k total credit limit)
$28k student loans (Have been paying for slightly over a year now)
Credit stretches back to late 2008 with loans and a few credit cards

My Income:
$1.35k gross monthly, $1.15k actual
Have been with my current employer for slightly over a year

Monthly Payments:
$320 for rent + utilities
$220 for student loans
$200 for credit cards

My Goal:
I would like to purchase a car for under $7k, with loan payments under $180 a month for 3-4 years.
I do have a down payment of $1.7k cash (No cosigner, unfortunately), which would bring my requested loan to about $5k.
I currently have a named-operator auto insurance policy, and have looked at quotes through my insurer for several different cars I am interested in; full coverage looks like it will be under $100 a month.

My Questions:
Considering all of this, how likely is it that I will be able to get a loan?
Would I have to go one of those terrible “guaranteed approval” places?
Do I just need to settle for a $2k junker?
What should somebody in my situation do?

Re: First Car Loan, Low Income

StartingOver10 — Sat, 30 Aug 2014 12:20:14 GMT

Go to a credit union to get your approval then you will not have to worry about going through the car dealership. You are much more likely to get approved through a CU. Expecially since you have money to put down and a verifiable income. The CU will have some requirements on the vehicle itself (age/milage/value) and then you can shop for the vehicle accordingly. Many CU's even have a service that will help you shop for the right vehicle.

Otherwise you can take your pre-approval into any dealership and shop away. Don't let the dealer run your credit. Don't sign an application with the dealership. You can use your CU approval to purchase. This will take the hardship out of buying and make the purchase fun again.

topic Re: First Car Loan, Low Income in Auto Loans

First Car Loan, Low Income

Re: First Car Loan, Low Income