Approval Auto Financing

Anonymous · ‎08-26-2018

I am trying to help a young lady friend of mine, 24 years of age, obtain financing for a used or leased vehicle in her name with myself as a co-signer. We have different living addresses in New Jersey. So far, we have been denied twice because of her lack of prior borrowing in her name, her desire for a higher priced vehicle ($35,000 - $40,000), in addition to her low credit score. She does work full time and pays rent at the apartment she lives in. I am a retired male and my credit score is excellent, about 840. Her credit score is probably in the 500’s. Any suggestions appreciated on what we need to do to get this young lady approved for a car loan in her name, not mine. I think she realizes now that her price tag is much too high. Would getting pre-authorized for financing help in any way? Would a second co-signer help? Thanks so much.

Anonymous · ‎08-28-2018

How many red flags do I see? Too many to count. Young lady with credit in the dumpster wants an elder retired sugar daddy to cosign a loan for her for an expensive car. With a 500's credit score, her loan application could have more signatures than the Declaration of Independence and she would still not be approved. Do you want to help her? Help her save enough money to buy a beater at a buy-here pay-here lot without you. Figure 50% down. Then she will appreciate the car, not just look at it as something the rich old man bought for her. In your proposal you have 100% of the risk (which I would say is rather substantial that you won't have an 840 credit score for long) and she has 100% of the benefit.

Do it your way and I would guess she and that car will be gone in 90 days, and all you will have to show for it is trashed credit and a lot of car payments to make.

Anonymous · ‎08-28-2018

@Anonymous wrote:
I am trying to help a young lady friend of mine, 24 years of age, obtain financing for a used or leased vehicle in her name with myself as a co-signer. We have different living addresses in New Jersey. So far, we have been denied twice because of her lack of prior borrowing in her name, her desire for a higher priced vehicle ($35,000 - $40,000), in addition to her low credit score. She does work full time and pays rent at the apartment she lives in. I am a retired male and my credit score is excellent, about 840. Her credit score is probably in the 500’s. Any suggestions appreciated on what we need to do to get this young lady approved for a car loan in her name, not mine. I think she realizes now that her price tag is much too high. Would getting pre-authorized for financing help in any way? Would a second co-signer help? Thanks so much.

You're using your wrong head. You're retired. You're on a fixed budget I'm assuming. I know the urge to swoop in the hero might be overwhelming, but I think this has trouble written all over it. The only way a 24 year old should have a higher priced vehicle is if they can do it on their own. She needs to get what she can afford. And while she'll tell you all day long she can afford a $500+ a month car payment, but it's likely she won't be able to. If you want to help her, say no to co-signing for her. And you said she has a low credit score. That means she has borrowing in her past. And she hasn't been responsible with it. If she had a thin file, she could still have a high score if she was responsible. But a thin file and a low score spells trouble.

Loquat · ‎08-28-2018

@Anonymous wrote:
How many red flags do I see? Too many to count. Young lady with credit in the dumpster wants an elder retired sugar daddy to cosign a loan for her for an expensive car. With a 500's credit score, her loan application could have more signatures than the Declaration of Independence and she would still not be approved. Do you want to help her? Help her save enough money to buy a beater at a buy-here pay-here lot without you. Figure 50% down. Then she will appreciate the car, not just look at it as something the rich old man bought for her. In your proposal you have 100% of the risk (which I would say is rather substantial that you won't have an 840 credit score for long) and she has 100% of the benefit.

Do it your way and I would guess she and that car will be gone in 90 days, and all you will have to show for it is trashed credit and a lot of car payments to make.

@Anonymous Please try to stick to answering the question of the OP or not respond at all. He never asked for anyone's opinion on if he should or shouldn't do this. He's an adult and it's his choice. While you may not agree with what he's doing, that wasn't the question asked. Thanks in advance for your understanding.

Loquat · ‎08-28-2018

@Anonymous wrote:
@Anonymous wrote:
I am trying to help a young lady friend of mine, 24 years of age, obtain financing for a used or leased vehicle in her name with myself as a co-signer. We have different living addresses in New Jersey. So far, we have been denied twice because of her lack of prior borrowing in her name, her desire for a higher priced vehicle ($35,000 - $40,000), in addition to her low credit score. She does work full time and pays rent at the apartment she lives in. I am a retired male and my credit score is excellent, about 840. Her credit score is probably in the 500’s. Any suggestions appreciated on what we need to do to get this young lady approved for a car loan in her name, not mine. I think she realizes now that her price tag is much too high. Would getting pre-authorized for financing help in any way? Would a second co-signer help? Thanks so much.
You're using your wrong head. You're retired. You're on a fixed budget I'm assuming. I know the urge to swoop in the hero might be overwhelming, but I think this has trouble written all over it. The only way a 24 year old should have a higher priced vehicle is if they can do it on their own. She needs to get what she can afford. And while she'll tell you all day long she can afford a $500+ a month car payment, but it's likely she won't be able to. If you want to help her, say no to co-signing for her. And you said she has a low credit score. That means she has borrowing in her past. And she hasn't been responsible with it. If she had a thin file, she could still have a high score if she was responsible. But a thin file and a low score spells trouble.

@Anonymous The OP never stated that he was on a fixed budget and for that matter never asked for the opinion of if he should or shouldn't help this young lady he's referring to. References to body parts or liking to that fact that someone is thinking with something other than their brain isn't tolerated on these here forums. While you may have concerns that's not the question the OP was asking. If you can offer advice or suggestion in regards to the original question then by all means please do, if not then I politely ask that you please refrain from commenting.

I do thank you in advance for your understanding.

SweetCreditObsession · ‎09-03-2018

If you want to give or loan her money, do that. She could try getting a loan through carvana without you. Co-signing could hurt your scores as she's got a negative credit history and I would hate to see you take a hit. Best wishes.

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