Applying for Auto Loan

[Anonymous]

Hi guys, I have a question regarding applying/getting denied from an auto loan. I'll be graduating from college in a few months and starting a new job and am buying a new car in about a month. I'll be getting a loan for about 25k. I wanted to get the loan myself without having my parents cosign, but I tried applying for an auto loan through chase and they said I had to use my current salary as the amount I make per year (which as a student is very low), rather than the amount I will be making when I start my new job. Anyway, I decided to try the application anyway and got denied, which I guess that isn't that surprising. My father said he has no problem cosigning with me, so that is what I am planning on doing. My question is did that first application I did individually that I got denied for hurt my credit score, and will THAT dip in credit (even though it is temporary because of the hard inquiry) hurt my chances when I reapply with my father as a cosigner. I heard something about how if these hard inquiries are within a week or so of eachother it will count as one? on your record?

Any advice is appreciated.

[Anonymous]

Couple of things:

- The inquiry will ding your credit, but nothing rediculous. If you apply for another auto loan within <30 days, not confimred>, it will all get lumped together, as far as scoring goes.

- Have you already found your new job yet, and negotiated salary? If not, don't be araid to ask for a signing bonus, certainly a fair request right out of college (hey, you need new clothes, right?) In not, then no sweat... Just might be some easy money.

- Don't be afraid of a cosigner, but try really really hard not to jack up his credit!!!! If you think you might be late, call him and let him make the payment!!!

Otherwise, this may have more luck moved to the auto forum.

[fused]

Welcome jmillz!

I'm moving this thread to the Auto Loans forum.

[Anonymous]

Thanks for the advice cassembler.

I already received the official offer from my new job, and I did get a signing bonus for relocation and other expenses, I know I will be able to afford the loan on my new salary, the problem regarding the need for a cosigner is because when I fill out a loan application they considered my current salary, which is only for a part time job I have during college, which only gives me a yearly salary of like 25k, which on paper obviously looks pretty bad and I won't be able to get approved for a 20-24k auto loan on that yearly salary. I just need to buy the car before I actually start at my new job, which is why I need a cosigner.

[Anonymous]

Well, that's how I got my first car. Nothing wrong with cosigners at all.

With relocation, I take that to mean your dad will not be physically present at signing? This may pose a logistical challenge, but probably very doable. Car dealers like to sell cars, right?

But again, sorry to sound like I'm nagging, but communcate if you're event possibly missing a payment. I was too embarased one time and punctured my parent's otherwise impeccable credit with a 30. Silly.

Good luck on the new job!

[Anonymous]

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@Anonymous wrote:

Thanks for the advice cassembler.

I already received the official offer from my new job, and I did get a signing bonus for relocation and other expenses, I know I will be able to afford the loan on my new salary, the problem regarding the need for a cosigner is because when I fill out a loan application they considered my current salary, which is only for a part time job I have during college, which only gives me a yearly salary of like 25k, which on paper obviously looks pretty bad and I won't be able to get approved for a 20-24k auto loan on that yearly salary. I just need to buy the car before I actually start at my new job, which is why I need a cosigner.

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Most captive lenders I have seen offer a recent graduate program.  Talk to the dealership you plan to buy from about this.  Usually they will ignore the fact that you have no auto loan history and will usually also accept offer letters, instead of paystubs.  These programs often qualify for the best promotional rates as well.  Definitely call a dealership or two to ask about their graduate loan programs.