Auto Loan advice

[Anonymous]

Morning Board,  I am in the process of purchasing 2 autos next month(mid March).  My annual income is in the 145k range.  My current Experian FICO is 680 due to an erroneous Collection account that is due to drop off in September.  Yes, I've tried disputing, validating the debt with the Collection Agency and even retaining Lexingon Law Firm.  I've been pre-approved with Capital One Auto Finance up to 45k with an APR of 6.8%.  Since I am purchasing 2 vehicles (one for my wife and the oher for myself), I was thinking of making the purchase the same day as to avoid having it show up on my Credit Reports and taking a hit on my FICO.  Any thoughts on this?  Any suggestions for a favorable outcome?  Any and all suggestions and comments are welcome.  Each vehicle will be approx 30k.

[Anonymous]

Are these new or used auto loans? For either new or used, that rate it a bit high. Especially high for new. Have you tried some credit unions to see what they offer? I financed my last purchase through PenFed and it was a pleasant process.

You want to finance one purchase through Capital One. What about the second car?

[Anonymous]

Most likely my bank or Wells Fargo

[Anonymous]

I just got approved by audi financial with annual income slightly less than yours and EXPERIAN score used was 630 with 5% interest rate. I think you should be fine. Since you are taking out 2 loans I take it your spouse will be a co-signer on these car notes? Do you know what the price range is for these two vehicles OR the type of vehicles you are trying to purchase? FYI: I had two auto charge-offs on my CR but were paid anyway-- the last one was reported in March 2018, but I was still approved from multiple lenders, but audi financial gave me 5% whereas other lenders were sticking me with HIGHER DOWN PAYMENT and ridiculous interest rates. Two important caveats: time on the job and residency status are key. You seem to be in good shape with income, BUT number of years at the same job and time at the same residence is key--STABILITY! These are the key things for approvals. Please come back and let us know how it works out. That collection will not matter for auto purchase. Auto dealers and finance arms look specifically at auto payment history.
Goodluck.

[Anonymous]

I hope this helps: I have 53 inquiries across all 3 bureaus, BUT mostly due to the fact that I was doing a mortgage refinance. IT'S NOT A BIG DEAL, as long as the credit pulls are done in a short window--15 to 45 days for the same product; multiple auto inquiries within that window will count as one pull. Don't lose sleep over that. You will be fine. DO NOT DO one each month of the year! That will drive your fico score down.

[Anonymous]

Badicedog, I apologize for not seeing you are looking at vehicles around the 30k mark. I think you should be fine. But in my previous post, STABILITY on the job and residency status are the two important factors. If your STABILITY is good, they may not even ask for income verification and you should be fine.
Best of luck.

APPROVING BANK:Audi financial
BUREAU PULLED:EXPERIAN
CREDIT SCORE:635

SOFT PULL/HARD PULL: HP
CUSTOMER STATE OF RESIDENCE:17 YRS
NEW/USED:USED C.P.O.
YEAR OF VEHICLE:2017
MAKE:AUDI
MODEL 6
MILEAGE:11910
FINANCE/LEASE:FINANCE

PURCHASE PRICE:56995
AMOUNT OF LOAN:65000
TERM CONTRACTED:72
APR/LEASE RATE:4.99
MONTHLY PAYMENT:1100
ANNUAL INCOME:138000
DEBT TO INCOME RATIO:45
MISCELLANEOUS COMMENTARY:AUDI financial does not look at collections unless it's an auto derog.

[Anonymous]

Badicedog, is that 680 your " Classic" fico score? The score you see on MyFICO is just your classic fico. You want to know your auto-enhanced scores, which will be different from your standard EXPERIAN fico score. My EXPERIAN fico is 681, but my enhanced auto score for EXPERIAN is 635. See the discrepancy? I use the MyFICO 3B--you get precisely the scores that lenders will use: for credit cards, auto, mortgage, etc. It's worth it. Try it.

[Anonymous]

Employed Full Time at Kaiser Permanente for 5 yrs.  Stable residency for about 10 yrs.  Used Standard FICO not enhanced.  My wife will NOT be Co-signing, all me!

[Anonymous]

I suspect you should be fine. Please let us know how it turns out.
Best wishes

[Remember0]

I agree you will be fine. Will both cars be new from the same manufacturer? I think it is likely you'd qualify for captive financing less than even the 6.8 percent you have in hand but good to have that to keep the dealer honest.

I like the same day idea though I can't imagine the stress of dealing with two dealerships the same day! I'm not suggest you lie IN ANY WAY, but if you are buying from 2 different manufacturers the same day I would recommend you do not voluntarily offer that you are on your second purchase of the day lol. Of course if they ask you have to be honest.