topic How Much Does the Down Payment Help ? in Auto Loans

How Much Does the Down Payment Help ?

Andy77 — Fri, 17 Jul 2015 20:05:27 GMT

So Penfed denied me...but when they did they did not know the kind of car or how much I was going to put down.

If I tell them I am getting a 63k car and putting down 30k....do you think that will make any difference ?

That is a huge down payment

Re: How Much Does the Down Payment Help ?

gdale6 — Sat, 18 Jul 2015 00:41:58 GMT

@Andy77 wrote:

So Penfed denied me...but when they did they did not know the kind of car or how much I was going to put down.

If I tell them I am getting a 63k car and putting down 30k....do you think that will make any difference ?

That is a huge down payment

IMO a near 50% DP could swing it for you its worth the try.

Re: How Much Does the Down Payment Help ?

MarineVietVet — Sat, 18 Jul 2015 20:12:52 GMT

@gdale6 wrote:
@Andy77 wrote:

So Penfed denied me...but when they did they did not know the kind of car or how much I was going to put down.

If I tell them I am getting a 63k car and putting down 30k....do you think that will make any difference ?

That is a huge down payment

IMO a near 50% DP could swing it for you its worth the try.

Ditto to this. Money talks.

Re: How Much Does the Down Payment Help ?

Gmood1 — Sat, 18 Jul 2015 23:17:00 GMT

Worth a try. A couple if years ago I was putting nearly two thirds down on one of my vehicles. My main bank turned me down! Lol
Hopefully Penfed has someone with common sense issuing loans. PenFed will get my next auto loan. Great company to deal with.

Re: How Much Does the Down Payment Help ?

Anonymous — Mon, 20 Jul 2015 10:57:51 GMT

I think it really depends on the bank. Some (like PNC and DCU) just care about the loan amount, some others (Cap One and Audi FS) takes down payment into consideration.

Re: How Much Does the Down Payment Help ?

SamsungHDTV — Mon, 20 Jul 2015 14:14:24 GMT

@Andy77 wrote:

So Penfed denied me...but when they did they did not know the kind of car or how much I was going to put down.

If I tell them I am getting a 63k car and putting down 30k....do you think that will make any difference ?

That is a huge down payment

Yes, down payments make a difference. BUT regarding your penfed application, it depends on your decline reason.

Down payments help with application factors like DTI and LTV. But they don't help with your credit score. So, it really depends on why you were denied. I suggest waiting for the notice of adverse action, or calling an underwriter to find out why you were not approved before you proceed with another application. There is a chance you can get a manuel review, change the collateral on the application directly with the underwriter, which means you don't have to apply and take another inq.

Re: How Much Does the Down Payment Help ?

Hoya08 — Tue, 21 Jul 2015 10:09:41 GMT

@Andy77 wrote:

So Penfed denied me...but when they did they did not know the kind of car or how much I was going to put down.

If I tell them I am getting a 63k car and putting down 30k....do you think that will make any difference ?

That is a huge down payment

Did you ask for the full 63k then? I've gone through PenFED (as well as NFCU, and USAA) multiple times and don't recall their application requesting how much of a down payment I plan to put down. Correct me if I'm wrong, all they ask for is the total amount you want. I've never had any issues with loans up to 50k for the three lenders above.

Looking over your other posts, besides 40k of 60k available credit used (66.7% utilization), what's your DTI?

Re: How Much Does the Down Payment Help ?

Anonymous — Tue, 28 Jul 2015 14:15:17 GMT

This is where working with the dealer finance guys help. They work with lenders all the time (first name basis with alot of them) and LTV is a huge factor. You are putting up 50% of the value, so worse case, they are only on the hook for $30k on a $63k car if they have to pick it up (lol).

In 2001 my credit was bad, but I bought a new truck (think it was $39k). I put down $10k and I got the rate I wanted. I was a lower risk, even with the credit because their exposure was less (and the collateral was new too)

Yall are making me wanna go look at new cars today, all these apps/approval posts about cars, lol

Re: How Much Does the Down Payment Help ?

2b2rich — Wed, 29 Jul 2015 03:18:01 GMT

@Andy77 wrote:

So Penfed denied me...but when they did they did not know the kind of car or how much I was going to put down.

If I tell them I am getting a 63k car and putting down 30k....do you think that will make any difference ?

That is a huge down payment

How much recent auto loan experience do you have? I had absolutely none and my own (previous) CU wouldn't approve me without a co-signer even with a large downpayment. I was able to get financed through the dealership with no money down ($25K).

Re: How Much Does the Down Payment Help ?

TRC_WA — Fri, 31 Jul 2015 17:21:22 GMT

@2b2rich wrote:
@Andy77 wrote:

So Penfed denied me...but when they did they did not know the kind of car or how much I was going to put down.

If I tell them I am getting a 63k car and putting down 30k....do you think that will make any difference ?

That is a huge down payment

How much recent auto loan experience do you have? I had absolutely none and my own (previous) CU wouldn't approve me without a co-signer even with a large downpayment. I was able to get financed through the dealership with no money down ($25K).

Yep... sometimes a large down payment can't offset the lack of an auto history... and in my case an auto history can offset the lack of a down payment.

I had 2 previous loans... a $12k loan from 2008 paid in 2013 and a new $22k loan from 2013 to 2015.

My $22k lender refused to go higher than $28k on a new loan back in January... so I went to a different CU and got a $40k loan on a new Challenger...

... with $0 down.

What can I say... I didn't feel like putting down $5k just to save $60 a month on my payment.

EQ Auto FICO was 709... I had a few denials for "insufficient down payment" but I still secured the loan at 4.49% which I plan to refi in the next few months once everything related to my Ch 13 falls off my reports and I get a nice score boost. I plan to refi with BECU... the same lender on my previous loan. They wouldn't approve this loan but seeing a 700+ score as well as a year of payments on this loan should make for an easy refi to 1.99%... their best rate.