Chances of Auto Loan Approval on New Audi R8!

[Anonymous]

Hi all! Last October, with all your help, I purchased a slightly-used Shelby GT350 and have been loving it ever since. 

However, I recently came into a significant sum of money through my employment, and am planning on an upgrade. I've got my eyes and heart set on a new 2020 Audi R8 V10 Performance coupe ($205k MSRP) and I've already placed the deposit to order it ($1000). 

I'm wondering what my chances are of being approved at the dealership once it arrives in early January. 

My info: 

- 23 years old

- 2.5 yrs employment as software engineer at leading tech company in California

- salary roughly $250,000

FICOs:

- EXP 687

- TU: 703

- EQ: 658

- CK scores 741 TU/731 EQ

I have a few late payments on my record from ~2.5 years ago (see below), otherwise my credit history has been perfect for the past 1.5 years across 5-6 accounts and 10 payments on the Shelby (which I paid off early).

- 2x 30-day lates from BarclayCard (paid off & closed)

- 1x 90-day late from BofA (paid off & closed)

I'm planning on trading in the Shelby, which is now 100% paid off (~$45k value), and putting another ~$55k on top of that as the down payment for a total of ~$100k down.

What do you think of my approval chances? By January I'm expecting my scores to increase a bit (maybe 10-15 points each?). Was planning on applying through Audi/VW Financial at the dealership on the day of delivery, but could try to join PenFed if that's a better route. 

Thanks for your time! 

[Harvey26]

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@Anonymous wrote:

Hi all! Last October, with all your help, I purchased a slightly-used Shelby GT350 and have been loving it ever since. 

However, I recently came into a significant sum of money through my employment, and am planning on an upgrade. I've got my eyes and heart set on a new 2020 Audi R8 V10 Performance coupe ($205k MSRP) and I've already placed the deposit to order it ($1000). 

I'm wondering what my chances are of being approved at the dealership once it arrives in early January. 

My info: 

- 23 years old

- 2.5 yrs employment as software engineer at leading tech company in California

- salary roughly $250,000

FICOs:

- EXP 687

- TU: 703

- EQ: 658

- CK scores 741 TU/731 EQ

I have a few late payments on my record from ~2.5 years ago (see below), otherwise my credit history has been perfect for the past 1.5 years across 5-6 accounts and 10 payments on the Shelby (which I paid off early).

- 2x 30-day lates from BarclayCard (paid off & closed)

- 1x 90-day late from BofA (paid off & closed)

I'm planning on trading in the Shelby, which is now 100% paid off (~$45k value), and putting another ~$55k on top of that as the down payment for a total of ~$100k down.

What do you think of my approval chances? By January I'm expecting my scores to increase a bit (maybe 10-15 points each?). Was planning on applying through Audi/VW Financial at the dealership on the day of delivery, but could try to join PenFed if that's a better route. 

Thanks for your time! 

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Personally I think you should enjoy the car note free life. Save that money I think at 23 purchasing that expensive of a car isnt that great of a decision but thats just my opinion but on the other hand I do think that you would get approved but what kind of rate who knows unless they run your credit. 

[Shooting-For-800]

Most expensive car I ever bought was $55k so I am not expert but it seems like if you are putting down $100k on a $200k with a $250k salary, you should be able to get financed somehow.

No thought at all of buying a used one for $100k with no payment?

[Anonymous]

If you can find a newer certified pre-owned not only would you save a ton of money but it would come with a better warranty as their CPO's have unlimited mileage warranty and remainder of factory + 1 year so mine (just a lowly A3) has 39 months unlimited miles.

[Anonymous]

I just saved you $71K off sticker on a new one.  It should have around 3 years unlimited mile warranty.  

[pinkandgrey]

Oooohh that’s a yummy car lol. With your income, trade-in, and down payment, there will be no issue getting financed. Anyone can get a car through a dealership to be honest. The rate is the tricky part. I would think that your rate won’t be TOO bad considering your upfront investment, but it may not be stellar. 

Enjoy that magnificent machine. 

[Anonymous]

Ha, thanks for the suggestion, but I'm already set on the R8 I've ordered. That one's a convertible and a) is quite a bit slower and b) has significantly diminished chassis rigidity, which is an issue on the track. As a car enthusiast, why pay $100k+ for a dream car that doesn't match your dream spec? 

This thread was more supposed to be about my chances for approval and less about personal opinions regarding whether this is a "good" or "smart" purchase . 

[Anonymous]

I am a car guy, have 4 right now so I cannot pass judgement  nor would I.  We only live once and the only person who gets a vote is the person writing the check.

On qualifying I would plan on putting a significant chunk down, 20% or more and then you should be fine as long as you can document your income.  Penfed is a great source for car loans, my favorite actually.  Audi's capitive lender is an option of course.  You have a fair amount of time so I would do all you can to maximize your scores to ensure you get the best rate, I always suggest having a preapproval from a credit union before walking into the dealer, it helps keep them honest when you allow them a shot to try and beat the interest rate.    I think you will be fine, insurance will be crazy so you'll want to budget for that but I am sure you are well aware of that.  Sounds like you like to track your cars, I am addicted to track days so maybe our paths will cross some day.  

Let us know how it all shakes out, I am sure you will be fine.

[Anonymous]

@workingfor850 - 

Thank you for the advice! I think it does make sense to head over to at least my local CU right before picking up the car & attempting to complete the paperwork. I don't have any prior relationship with them but it can't hurt to try, assuming their HP will get grouped in with the HP(s) that Audi will do. I guess I'll try PenFed if both my local CU and Audi fall through. I'm not overly concerned about the rate - I honestly expect to pay off the car in ~2 years or sooner - just want to get some sort of approval. 

With regard to insurance, the increase is only about $100/month over what I currently pay for my Shelby ($220 vs $122)... I think Geico saw that the Shelby was RWD with 500+ horsepower and jacked up the rate. Either way, it's not a noticeable sum of money compared to the purchase price, and my budget/ridiculously low DTI (~7%) will allow for it. 

In the meantime, all my cards are reporting zero balance and have automatic charges & payments of ~$30 each. 

Hope to see you on the track! Ever make it out to California to drive? 

[Anonymous]

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@Anonymous wrote:

@workingfor850 - 

Thank you for the advice! I think it does make sense to head over to at least my local CU right before picking up the car & attempting to complete the paperwork. I don't have any prior relationship with them but it can't hurt to try, assuming their HP will get grouped in with the HP(s) that Audi will do. I guess I'll try PenFed if both my local CU and Audi fall through. I'm not overly concerned about the rate - I honestly expect to pay off the car in ~2 years or sooner - just want to get some sort of approval. 

With regard to insurance, the increase is only about $100/month over what I currently pay for my Shelby ($220 vs $122)... I think Geico saw that the Shelby was RWD with 500+ horsepower and jacked up the rate. Either way, it's not a noticeable sum of money compared to the purchase price, and my budget/ridiculously low DTI (~7%) will allow for it. 

In the meantime, all my cards are reporting zero balance and have automatic charges & payments of ~$30 each. 

Hope to see you on the track! Ever make it out to California to drive? 

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Make sure at least one of those cards shows a small balance reporting every month to maximize your scores.  For reasons that don't entirely make sense to me the algorithims don't seem to like all of the accounts PIF every month.  Just 20 bucks reporting on one card every month is all you need according to the experts on pumping scores.  Told them I was PIF every month and 3-4 told me that was not a good way to maximize your scores.  Also for score purposes having a installment loan reporting is a good thing, especially if most of the balance is paid so once you get your Audi it might be a good idea to pay off 95% of the loan and then let it sit and not pay it off entirely so next time you go car hunting your scores are primed to make it even easier.