Bankrupcy 4 years ago who will approve me?

[falzool]

I have a credit score of 678 with a bankruptcy that happened about 4 years ago. I also plan on cosigning for my son who has 600 credit with no negatives. Who do I have a chance of getting approved with for an auto loan?

[falzool]

I have a 678 credit score with 180k owed on mortgage, 50.k in equity. Im 69 years old. I would be cosigning for my son with a 650 credit score. The car would be around 44k downpayment of 2k-5k I previously have done this for my son on a 20k car and was approved for 9% interest rate. If anything credit has increased since then not decreased. Just wondering what the chance would be if the car price is doubled at 44k. I have around 30k annual income and my son has about 24k annual income.

[CAnNY]

Best of luck, but in all fairness I don't think anyone with 24k a yr salary has any business buying a 44k car. That's just my opinion. Maybe there is something you're leaving out in regards to financials. good luck!

[falzool]

Why dont you think its a good idea?

[Remember0]

Because just the car payment (44k for 65 months @ 3%) would be 40% of their pre-tax income. Now add in rent, gas, insurance (HEALTH and CAR), and food. Odds are it's higher than yearly income of 24. especially if we remove taxes off of that 24k. But that's for you to decide, I like to focus on seeing if approvable and the best strategy for low APR.

1) What is YOUR monthly mortgage payment? How about his mortgage/rent?

2) YOUR aggregate minimum payment across all credit cards? His?

4) Any other loans (exclude cards from q2, mortgage/rent from q1, and this car you want to buy)? Him?

Is your income special in any way? I have the feeling it may be SS income and thus essentially almost tax free?

[falzool]

My total Payments are 1564 between credit cards and Mortgage. He does not pay rent or mortgage. Going to school full time/ work full time and lives with his gf. His is about 50-100 between his 2 credit cards. No other loans. Yes I get SSI of $600.

[Remember0]

The DTI's on a >40k loan are going to be tough to be honest. Even if I grossed up your 600 to 750 (600/.8), that gives you roughly 2500+150=2650 of pre-tax income per month. Your DTI without any car payment is already 1564/2650=60%.

You son can put 0 on the app for rent/mortgage, but they're going to impute (what would happen if he and gf breakup? She certainly won't let him live in her place rent free...). I'll keep it low and say they'll impute $300. 300+700 (~4% for 40k for 72 months) divided by 2k is also 50%.

Essentially this might be a hard loan to get given the incomes. There is no other limiting factor though. Your FICOs are fine and will support such a loan. When you initially said you make 30k and him 24k was that before ANY taxes?

You're probably going to need a bank that is okay with pretty high DTI ratios. You can try DCU, but I doubt they'd approve especially given the income and DTIs. I know Bank of America is pretty lenient with DTI, at least they were with another gentleman I helped (he though had ~65k income and wanted to buy a Corvette). I'd honestly see what BofA says first. Then maybe apply to Cap One if BofA doesn't give you enough $ or denies and see what CapOne says. If both CapOne and BofA reject or give you less $ than you were hoping for, the best bet might be a dealer. I'd say there's a 60% chance a dealer get this loan through, you may just have to pay a pretty high APR to be honest partly due to DTI and partly because the dealer can jack the rate up if you don't force him to compete with an approval of your own.

What car exactly are we talking about here?

[falzool]

Does it help there is equity in my home? My son wants the new 2014 camaro . These numbers are pre tax you are saying don't try and get loan with dealer first? I though that was the easiest way because they have a lot of connections for different banks and CUs and they only pull credit once my mortgage is done through bofa does that help at all? Been with them 9 years now also would leasing be an option aswell?  I actually know the dealer very well he would do the best he could for me  he's a good guy

[Remember0]

It only helps if you're willing to borrow against your home which I STRONGLY DO NOT RECOMMEND.

Leasing could help reduce payment yes, but generally I'm not a fan of leasing. You can look into it if DTI is the big issue.

Yes, a dealer has connections. But there's this thing called dealer participation. Their interests are not aligned with yours and it's typically best if you get a rate, then have a dealer compete. See my section on participation here for an explanation:

http://ficoforums.myfico.com/t5/Auto-Loans/Guide-to-Financing-Leasing-and-Refinancing-a-Car/td-p/289...

When you say you know the dealer very well, he better be like a real pal. And to be honest, the owner or manager there better be a real friend. Just a salesman probably won't make the finance manager NOT screw you with participation. But yeah if you really do know them and it's not just because they acted friendly last time you bought a car, you could do it that way. Just make sure you know what participation is and that they really have your best interests in mind.

Finally, how old is your son? If he's not ~25 yet, insuring that camaro is going to be VERY expensive...just something to keep in mind.

[falzool]

My son is 21 insurance for him would be $150 and I was very surprised when I got those quotes. That is from progressive everyone else is 200+. What would your reccomendation be? Try and see what we can get financed first with bofa? Is there anyone else that would accept higher dti ratios? When we bought our car from them last time we got financied through the dealership they got us originally 9.99%, but for some reason they came back and said we got you a lower rate at 9.50% If they make more money off interest I dont see why they would do that, unless they did have our interest. Ive always done financing from a dealership. The times I havnt I didnt have much success. Now my son had tried to get financing before from a dealership for his first car and well it has at a different dealership and I was out of town during that time. He ended up with 29.9% interest rate, I wasnt there to help him, but it does give you a taste of what the dealships will try to do to you. I hate to think they are all out for your money. I just want to be able to help my son to enjoy his life and want to help him anyway I can. I told him I think he is over his head on this car, but he wants it and has given me all kinds of numbers and plans and things, I trust him thats why I would do it for him, just a matter of getting approved with a good interest rate.