Auto Approval with high CC util??

[Anonymous]

Curious to see what you all think here about my chances.
I got divorced last March and ended up with a decent amount of credit card debt... I have never in my short (6 year) credit history carried more than 30% ever, expect maybe during wedding time. Always PIF or carried under 30% if it was interest free.
Current Utilization is 76% with $37,000 in debt.
I will be selling my fixer upper home. Listing in about 2 weeks. If anyone is familiar with housing market terms, we have less than 2 weeks worth of houses where I am... and my house won’t last a week on the market selling for over 100k what my mortgage loan is at.
So, with that being said, I will be paying off my debts with the proceeds and have a 10k emergency fund. Cool.

Now the loan deets. I wanted to wait until my debt was paid to get a car loan... but the most perfect car is currently for sale and I’m eager to purchase. It’s a used 2017 328d for 38,500. I have a trade in that’s almost guaranteed at 10k.
I’m looking to lend on 30k, and potentially pay off or pay down substantially when my house sells.

Current FICO 8: EX 656 TU 648 EQ 652

Only baddie is a 30 day late on a credit card due to my ex closing the account without my knowledge which was 14 months ago. Never late on anything else.
I have had 4 previous auto loans, maybe 5. My ex kept refi-ing his truck, can’t remember how many times.
Longest loan was for 3 years. Always paid on time and many times over minimum payments.
Current DTI is around 35%.
AAOA: 3 years
AOOA: 4 years 2 months

[Asilomar]

I know it's hard to wait when you feel like you've found the perfect car, but wait you absolutely should.  Your scores are not good and the utilization on your cards is extremely high.  You'll probably find a sub-prime lender who will finance you but the interest rate will be just plain ugly.  Yes, you can refinance once you've used your money to pay off your debts and your scores will rebound nicely (how nicely depends on what else is in your credit file).  BUT, that's many months of high interest payments -- which you should factor into the price of your perfect car -- AND the new car loan will itself drop your AAoA which is already very young.  

So, I'd sit on my hands if I were you.  And if you really want to play from a position of strength, I'd work my butt off on a Goodwill letter blitz to get that 14 month old 30-day late removed.  That sucker is hurting you, too.  Then, employ the AZEO method and voila, you'll be in business.

Acting capriciously is just going to waste your money, lower your AAoA, ding your credit for a new account, and get you a nice new collection of inquiries.  Unless you're into that sort of thing.  

[Anonymous]

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@Asilomar wrote:

I know it's hard to wait when you feel like you've found the perfect car, but wait you absolutely should.  Your scores are not good and the utilization on your cards is extremely high.  You'll probably find a sub-prime lender who will finance you but the interest rate will be just plain ugly.  Yes, you can refinance once you've used your money to pay off your debts and your scores will rebound nicely (how nicely depends on what else is in your credit file).  BUT, that's many months of high interest payments -- which you should factor into the price of your perfect car -- AND the new car loan will itself drop your AAoA which is already very young.  

So, I'd sit on my hands if I were you.  And if you really want to play from a position of strength, I'd work my butt off on a Goodwill letter blitz to get that 14 month old 30-day late removed.  That sucker is hurting you, too.  Then, employ the AZEO method and voila, you'll be in business.

Acting capriciously is just going to waste your money, lower your AAoA, ding your credit for a new account, and get you a nice new collection of inquiries.  Unless you're into that sort of thing.  

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^ better than I could have said it

[iced]

Agree with the other posters. If the current car is fine, stick with it for a bit while you take care of the home sale and clean up debt. You'll save a ton in interest in the long-haul. The 328 is BMW's most common model and does not hold its value very well, so the upside to this is you'll likely find the right one for sale later for an even better price.