topic Re: I need an auto loan, but I have a low income. in Auto Loans

I need an auto loan, but I have a low income.

ShinBeats — Thu, 06 Jan 2011 08:19:57 GMT

Looking for a car that's 10-12k, my Ficos are all above 630, but I can't verify income of more than $800 a month..

Who would finance this car for me..?

Re: I need an auto loan, but I have a low income.

Anonymous — Thu, 06 Jan 2011 14:39:04 GMT

@ShinBeats wrote:
Looking for a car that's 10-12k, my Ficos are all above 630, but I can't verify income of more than $800 a month..

Who would finance this car for me..?

No one. A $800 a month income would be about $650 after tax. a 12K car would be about $600 a month. The numbers do not work.

I assume your non verifiable income is much more? If so you may need a co signer or to have someone to purchase the car for you (straw deal).

Re: I need an auto loan, but I have a low income.

ShinBeats — Thu, 06 Jan 2011 18:09:20 GMT

I mean, I'd obviously apply for generous months. The way I had it calculated out at 60-72 months, my payments would be less than 300 a month. The 800 is after taxes.

Re: I need an auto loan, but I have a low income.

Creditaddict — Thu, 06 Jan 2011 18:37:57 GMT

@ShinBeats wrote:
I mean, I'd obviously apply for generous months. The way I had it calculated out at 60-72 months, my payments would be less than 300 a month. The 800 is after taxes.

correct 12k would be between $260-325 for 60 months based on interest rate. Most time car dealerships do not ask for income verification but if you tell them $800 you are never going to get approved.

Re: I need an auto loan, but I have a low income.

ShinBeats — Thu, 06 Jan 2011 18:46:29 GMT

Well I do tell them more than that >_>;; but they always want verification since I don't have the best credit score.

When I pay off my cards come march, my score calculator said my scores would be around 670-690, do you think I should just wait until then, when it'll be less likely they need income verification?

Re: I need an auto loan, but I have a low income.

Lel — Thu, 06 Jan 2011 18:52:54 GMT

@ShinBeats wrote:
Well I do tell them more than that >_>;; but they always want verification since I don't have the best credit score.

When I pay off my cards come march, my score calculator said my scores would be around 670-690, do you think I should just wait until then, when it'll be less likely they need income verification?

Someone just posted this article over in Credit in the News that might be relevant to your situation. It's an older article, but perhaps still valid.

Lying on a Car Loan Application Is a Bad Idea

Re: I need an auto loan, but I have a low income.

Anonymous — Thu, 06 Jan 2011 19:06:04 GMT

@ShinBeats wrote:
Well I do tell them more than that >_>;; but they always want verification since I don't have the best credit score.

When I pay off my cards come march, my score calculator said my scores would be around 670-690, do you think I should just wait until then, when it'll be less likely they need income verification?

I'm fairly certain that you'll need to verify your income no matter what. And, as the previous posters have mentioned, lying on an application for credit is not going to end in good things for you. Even if you got the car, which I seriously doubt, it'd likely end up reposessed.

How much cash do you have saved towards a car purchase?

Re: I need an auto loan, but I have a low income.

llecs — Thu, 06 Jan 2011 19:43:45 GMT

OP, you mentioned that you cannot verify income of more than $800. Does that mean you have more income you aren't willing to verify?

Re: I need an auto loan, but I have a low income.

Anonymous — Thu, 13 Jan 2011 01:26:19 GMT

people I am so sorry I have no idea where I got $600 on a 12K car From. Was completly sober. i am thinking I had a small stroke.

Actually I probably just got my numbers confused that the 800 in income would be @ $600 after tax and the car payment and insurance would be close to $400- but anyway.

The fact of the matter is 800 in income is not enough to support a loan. You need to consider other options, do you have other non supportable income?

Re: I need an auto loan, but I have a low income.

Creditaddict — Thu, 06 Jan 2011 20:19:31 GMT

Car Max did not ask for income verification

Capital One did not ask for income verification either

and Nissan/Infiniti does not usually ask

Re: I need an auto loan, but I have a low income.

ibmrad7 — Thu, 06 Jan 2011 21:57:55 GMT

Honda Financial asked me for Income proof, maybe because my credit history was only couple of months old.

Re: I need an auto loan, but I have a low income.

Anonymous — Thu, 06 Jan 2011 22:43:04 GMT

Average minimum is $1,200 to $1,600 gross a month. You might need a co-signer.

http://www.autoloandaily.com/loan-news/featured-articles/2007-income-verification-why-you-need-to-prove-your-pay-to-the-auto-loan-lender

Re: I need an auto loan, but I have a low income.

ShinBeats — Thu, 06 Jan 2011 23:51:05 GMT

I have 1000 dollars. What do you want me to do, buy a pos 1000 car that's going to break down in 2 months? I've wasted lost of money on hoopdies, and it's time to get into something nice for once.

There has to be someone who will approve me.

Re: I need an auto loan, but I have a low income.

Anonymous — Fri, 07 Jan 2011 01:07:02 GMT

@ShinBeats wrote:
I have 1000 dollars. What do you want me to do, buy a pos 1000 car that's going to break down in 2 months? I've wasted lost of money on hoopdies, and it's time to get into something nice for once.

There has to be someone who will approve me.

Given that you mentioned, earlier in the thread, that you might wait until you've paid down your utilization in March, you have the time and the opportunity to save some additional cash, and to possibly demonstrate your full income via bank statements.

I'd propose that you stick your $1k in a savings account (if you haven't done so already), and add no less than the maximum payment that you expect to pay each month, once you're eligible for financing, plus the cost of insurance. So, let's take your proposed $325 for a car payment, and say... $75 for insurance (you'll want at least comprehensive no fault if you're financed, plus gap protection). Deposit that amount into your car fund savings account for January, February, March, and April (you'll have time to make this deposit while you wait for your scores to update from your CC payoffs).

While you save, and pay down your current debt, make certain that you're depositing all of your pay into your bank account(s). Make certain that the income for 2010 is claimed on your tax return in the coming months as well.

By April of this year, you'll have (at least) $2600 for a down payment-- 20% down for a car up to $13k. You'll also have the bank statements, and tax return to prove your income.

Re: I need an auto loan, but I have a low income.

ibmrad7 — Fri, 07 Jan 2011 03:45:39 GMT

Just hang in there. As others suggested, Improve your credit a little in coming months, save some money for down payment and I am sure you can approved. Nothing is impossible

Re: I need an auto loan, but I have a low income.

OnTheRebound — Fri, 07 Jan 2011 05:16:46 GMT

@ShinBeats wrote:
I have 1000 dollars. What do you want me to do, buy a pos 1000 car that's going to break down in 2 months? I've wasted lost of money on hoopdies, and it's time to get into something nice for once.

There has to be someone who will approve me.

I don't mean to sound pessimistic but you may not have a choice.

A Honda dealer in my town advertises if you net $1600.00 you are approved. I seriously doubt that is guaranteed.

Re: I need an auto loan, but I have a low income.

laz98 — Fri, 07 Jan 2011 05:41:13 GMT

@Anonymous wrote:

So, let's take your proposed $325 for a car payment, and say... $75 for insurance (you'll want at least comprehensive no fault if you're financed, plus gap protection).

is full coverage not required everywhere? here in texas it is required on all new vehicles.

Re: I need an auto loan, but I have a low income.

MarineVietVet — Fri, 07 Jan 2011 05:55:17 GMT

@laz98 wrote:

is full coverage not required everywhere? here in texas it is required on all new vehicles.

If you finance a car (new or old) the lien holder will probably require full coverage but I don't believe Texas law ever requires full coverage on any car, new or old. Just liability.

But I could be wrong.

ETA: I will call my agent tomorrow and check on this.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Re: I need an auto loan, but I have a low income.

Anonymous — Fri, 07 Jan 2011 09:38:25 GMT

@MarineVietVet wrote:
If you finance a car (new or old) the lien holder will probably require full coverage but I don't believe Texas law ever requires full coverage on any car, new or old. Just liability.

But I could be wrong.

ETA: I will call my agent tomorrow and check on this.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

In my state I am required to verify that a financed car (not a cash sales one BTW) has insurance before it can drive off the lot. Up to and including people coming in for a car without insurance and us having an "on call" insurance agent who comes in and gets them same day coverage (as most places wait at least 24 hours to establish your policy) so they can leave in the vehicle that day.

Also: when we call to verify coverage, in most cases the insurance co wants to know the name of the lienholder, and I also thihnk when people call to establish/change coverage they are questioned on that as well. Most people believe it is a non consequence formality- the reality is that should your insurance coverage lapse they usually send a notice to the lienholder.

Financed cars "require" full coverage and lapse of policy is lapse of terms and can result in a repo.

Re: I need an auto loan, but I have a low income.

Anonymous — Fri, 07 Jan 2011 10:34:55 GMT

@ShinBeats wrote:
I have 1000 dollars. What do you want me to do, buy a pos 1000 car that's going to break down in 2 months? I've wasted lost of money on hoopdies, and it's time to get into something nice for once.

There has to be someone who will approve me.

I am sorry but there is no "right" to a car loan. I am not telling you this as someone who is looking down on you but simply stating a fact. You may need to enlist friends or relatives to help you find a cheaper car sold private party, or to cosign or to take an additional job to save more money for a purchase.

A buy here pay here could help you but you need to understand those options will not get you the car you choose but the one they think you can afford.

I did not have a car when I left the USMC. in fact I did not have a driver's license.

When I went to get my license I had to have a friend use their car as you could not test in a rental. (my friend had rented one for me)

When I went to buy a car I could not get financed by anyone as NFCU had a 1 year to eas, 1 year on new job rule for financing and my credit was "spotty" at best- I had moved across country with no references and new at a job.

My brother helped me "buy" a $800 POS that died day 3 and i was back to renting.

So for 8 months I drove a rental car rented monthly at a cost of $600+ a month- rented with a debit card (so I had to have enough on the card to "pay" the authorization/funds hold and then each month I paid cash for the rental.

Then one night sick of blowing twice a car payment a month, although I was clearing almost $3K a month after taxes (and spending almost 1K on car/insurance/gas), I went online and the Special Finance department of a Dealership using CAC helped get me into a car. They chose the car for me, 70K miles, standard cab, 5 years old at I felt gouging price, I had to achieve a certain downpayment to get it, with all the essentials I had to tack on like service contract, taxes and fees etc and at 24.9% the payment was $334, for 4 years (what they would finance me for). And I was happy I had a car, and was saving half what i had been paying.

The gas tank fell off driving it home that night.

The dealership provided me with a loaner as they fixed it.

One year at my job and just seeing if it would happen I apped online and NFCU approved me, keeping the term the same (4 years- so yes I extended the total loan by 6 months) but dropping my payment to 210 a month.

I understand that the poor many times pays more for services and even life needs that the better off financially do not. That they are at a disadvantage.

I am sorry that's a huge injustice. i do not think its fair that people who cannot keep enough in a bank to get free accounts pay a fee to cash their paychecks somewhere, or pay more for food as they are limited where/how they can shop. That by not being able to afford a washer/dryer or get theirs fixed they pay more per month to use a laundrymat. By having to purchase money orders, direct utility bill fee pays, paying for check cashing -is many times more then the monthly fee they would pay for a bank account, and even if they could get a bank account not having a car means they have to try to get transport to a bank to cash it (many employer do not offer direct deposit)- but many might accidentally overdraft then anyway and Chex Systems issues start.

Thats money they could use to pay for food or doctors appointments or medicine, or to even improve their situation in life.

I started cashing a guy who lived in my apartment buildings paychecks for him, each month I saved him almost $30. To many thats pizza money or Starbucks or how much we spend on 12 packs of Coke- to him he was able to save and afford a cellphone and have a phone for the first time in a year.

I pay my bills via online banking I do not pay a fee the account, for checks or stamps. I was in a drug store that had a fee schedule on the wall for paying bills and was like why do people do that pay a fee to pay their say electric bill unless they are close to shut off. It was explained that the fee to pay it was still cheaper then paying for both a money order and then a Stamp which combined meant that they could be paying 1.30 to pay a bill instead of just the .69. I was like OK.

But there is no right to credit or a loan. Sorry.