Auto Loan With Low Income

[Xocifymx]

Dear Friends,

     Is there a way to get an auto loan with an income of $1200 a month without a co-signer?

I spend less than half of my income on my bills and that includes a 10% monthly donation. I guess being a boring, grungy, raggedy Ole man helps with the spending.

I plan on putting down almost half but maintaining a few grand for emergencies.

I have an 783 FICO and a strong money management culture.

I thank you in advance for your courteous reply

[JoeRockhead]

It's going to really depend greatly on what you're trying to buy, and how much you're trying to finance.

[Xocifymx]

I primarily want a ~$30K '24 Chevy Equinox, my second choice is a $26K '23 Chevy Bolt both with about half down

[JoeRockhead]

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@Xocifymx wrote:

I primarily want a ~$30K '24 Chevy Equinox, my second choice is a $26K '23 Chevy Bolt both with about half down

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It's going to come down to your DTI ratio with the car payment factored in. If your monthly debt obligations such as rent/mortgage, etc (things like utilities and groceries aren't included) and the new car payment are under, or around 36% of your gross income, then you should have a good chance of approval. If your DTI approaches, or goes over the 50% mark, your chances go down. But, being you're putting half the purchase price down could also possibly sway things in your favor, depending on the lender.

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[Shooting-For-800]

If you have $10k in cash, they will find a way to finance you.

Make sure to watch that interest rate!

GL!

[fury1995]

A couple of quick questions first. What is your before tax (not your take home) income monthly? Are you paid a standard salary weekly / biweekly? Or are you hourly? Who are you banking with now? Is your down payment from your personal savings or from someone else?

[Xocifymx]

$1,212 a month - $14,544 a year,

I am retired with a low income so I don't pay income taxes

[805orbust]

50% down is a HUGE plus. I don't think you'll have an issue either way.  That's a comparatively small amount of risk for them. I think you'll be pleasantly surprised.  I would try to do a pre-qualification with your credit union or bank first. The dealer will for sure get you approved but of course pull your credit 30 times during the process (slight exaggeration there)

[Xocifymx]

I have about $23K in loans that stay around 3% utilization, also my score was 823.

As I understand it, when we apply for an auto loan all of the lenders that they apply to in our name should count as one.

I have about seven hard inquiries 😕

I am waiting for the EV incentives program to get funding. They say that they will be giving up to $9K for a down payment and a few grand in rebates.

I think that it is on a first come first served basis

[Mdowning30]

It sounds like you should be in the market for a cheaper used vehicle thats a few years old, you can still  find dependable used cars, do your research. Chevy isnt high on the lists for reliability, even brand new they dont make them the same anymore unfortunately.