Auto loan interest & approval

[Anonymous]

Looking for guidance about to start looking for used vehicle
The price is between 27k to 31k
Im looking forward putting 4k down
I have established some credit but not as much my fico score 520
My auto fico 8 500 score
I have paid off a vehicle before but the dealer was one of those dealers buy here pay later type i think my interest was 15% i never missed a payment
Income before taxes 1200 i have part time as well

My question if you can help with all that information
Will it be hard for my loan to be approved. And i roughly want my payments nomore than 600$ is this possible?
Thank you

[JGGM]

I cannot foresee a lender loaning you that amount of money with a monthly gross income of $1200. If I were you, I'd take the money you have saved for a down payment and by yourself a cash car. 

[Anonymous]

No no my monthly income be about 2400

[Anonymous]

Monthly income is 2600

[JGGM]

Ok that definitely helps. With the scores you posted though, youre going to have an up-hill battle. If you get an approval it will probably be around 20% interest and probably not in your best interest to do that deal. If there's any way you can find a cash car to get you by for the next year or two while you focus on building your scores up, that would be best in my opinion. 

[Anonymous]

U think they will work with me to keep my payments under 600? Just wondering trying get as much info as i can

[JGGM]

Well, the math is what it is. If the only approval they get is for 20% interest, then borrowing $25,000 at 20% interest for 6 years is $599 a month. Of course if you pay it over the full 6 years, you're paying $43,200 to repay $25,000 - which doesnt make a whole lot of sense when you could spend a year or two building your credit up and not have to do a deal like that. 

[StartingOver10]

^^^Agree.

Buying  a vehicle that costs that much on your current income is going to be stepping into a pressurized situation. You may be able to handle it initially, but if the loan is for 6 years you are looking at 72 months of high interest debt.

Far better to get yourself into a better financial position first by working on your credit (and income) so  you aren't forced into a high-interest loan. Take control of your finances. Get a cash car until you get your scores up to at least the mid 600s so you aren't penalized for the term of the loan. This gives you some breathing room first.