@Anonymous wrote:Im 23 years old and looking to finance a car. Last march I cosigned on my wifes car, a 2006 honda civic SI that we got for 13,000. When I look on my credit report on USAA it doesnt show that santander (the loan company) has reported that im on any sort of car loan whatsoever, It also isnt showing up on my wifes credit. We purchased the car through carmax.
My question is, without this showing on my credit, and my score being a 631 would I get approved for a 21,000 car? I have about 8,0000 for a downpayment, and my 'debt to credit' ratio is under 25%.
Looking to buy a 2005-2006 Mitsubishi Evolution and put the 8,000 I have down on it. My wifes credit score is a 706 but she has nearly nothing on her credit report, as we are both so young. Do I need more money down? What kind of APR should I be expecting with my credit score? Would my wife cosigning help with the APR even though she has little credit history?
I think we're reading too much into this.
You have 8K down, the total car OTD price is 21K or thereabouts? So you need 13K financing only? That is guarunteed approval: absolutely, undoutably, unequivocally someone will approve you for a loan.
Even if you take the worst case scenario, where you're looking for a 21K loan on a 29K OTD car, you're still looking at 27% and change down, which once again, is guarunteed approval. Getting a car loan is the easiest type of loan to obtain, it's in everyone's best interest to sell you the car, and you're giving them eight thousand reasons to approve you (an underwriter from Wells literally used that expression on my own auto loan and my credit is in all ways worse than yours). Look at this way, the lion's share of the depreciation is already out of the car, and if you're still in their financing window (and I think you are for most lenders in terms of age of vehicle), even if you flake in the first two years of the loan the bank will just sell your car and turn a profit. They really can't lose, and their risk analysis will bear this out.
Your rate may not be pretty, but just refinance the car in six months to a year. I'd second the CU option if you have it available, I'm continually shocked and surprised at the rates people get from CU's, and when I go refi I'm planning to hit two of them out of my three lenders of choice.
