Approval Odds w/Down Payment Amount

Anonymous · ‎11-04-2020

I need to get out of my current vehicle sooner rather than later. Looking at January/February so I can increase my down payment. Just looking for some thoughts on my approval odds at my current rate of saving, does it go up significally if I increase my down payment a bit and so on.

Basic Info

Credit Score: Fico 8 = 708, Auto 8 = 683, Auto 2 = 668

Income: $85k

Length of Employment: 10+ years

Previous Loan Experience: Mix of mortgage, auto loan, credit card, personal loans. 100% on-time payments, no negative marks

Debt-to-Income (DTI): 29%

Price of Car: $50kish after title/tax and delivery fees

Year of Car: 2021

Miles: 0 - New

Purchase/Refinance: Purchase

Requested loan term (XX Months): 72

Down payment amount: TBD

Co-borrower/Co-Signer: No

Dealership: Toyota (perhaps going through Toyota Financing?)

Every month my scores will jump up a few points as I pay off more, so the longer I wait I do have that in my favor. Down payment wise can easily do $5k. My question is, what do folks here think of my approval odds with a $5k down payment? Do I have a significantly better approval odds if I increase that to $7k or maybe even $8-9k? A $10k down payment might be dobable, I'd just wipe out my entire savings which I do not feel comfortable with doing. But if that would really lock it in for good approval odds then maybe I can push my buying date back to March/April - I really don't want to do this though if I can help it.

Also I don't want a bunch of hard pulls, so I'm thinking maybe dealership financing would be the best for that. Which I'm not entirely sure how selective Toyota Financing is.

Thanks

AllZero · ‎11-04-2020

I don't have an answer to your question. I'm not familiar with Toyota Financing.

Are you a member of a credit union? If not, have your considered joining one, e.g. PenFed, DCU, local, etc. to get your financing?

Here's a good thread with data points. Perhaps, go to the last page and work your way backwards? Auto Loan Approvals!

sccredit · ‎11-05-2020

Toyota is one of the easier ones. With a $5k down payment I think you'll be fine. Offer less down at first and use the $5k down to get the dealer push you into tier 1 if needed.

Anonymous · ‎11-06-2020

Hi OP, i'm aware of this website called Leasehackr in which community forum you can find someone that can give you a clear toyota financial info. If you post on there you will get contact info for Toyota brokers, and specialist. Good Luck!

Remedios · ‎11-06-2020

I have a slightly different take on this.

Your scores are too low for no negatives, even with utilization at 29%

While you may get financing, seems you already have quite a bit of debt, and you're planning on purchasing a new vehicle that's more than 2/3 of your yearly income...which will lose value moment you touch the keys.

You should consider getting decent used vehicle to avoid future financial issues.

I'm assuming you're picking longest term to lower payments, but again, with devaluation, you aren't really helping yourself. If you can afford this car at more reasonable term such as 48 months, go for it.

If it has to be 72, I'd devote more time thinking about this.

Anonymous · ‎11-08-2020

Used vehicles are extremely over priced right now which is why I'm going new. I wasn't planning on having to look at a vehicle for another 2+ years but life happens and here I am.

Thanks to those that helped with my question. Much appreciated.

Anonymous · ‎11-16-2020

@Anonymous wrote:
Used vehicles are extremely over priced right now which is why I'm going new. I wasn't planning on having to look at a vehicle for another 2+ years but life happens and here I am.

Thanks to those that helped with my question. Much appreciated.

Do not buy used now....