Chances of approval for a 2017 Dodge Hellcat Challenger

[Tinkerbell319]

My boyfriend is in the market for a 2016 Dodge Hellcat Challenger for $51,000.

For the last two years we've been building his credit. I made him an authorized user to my oldest card which is 1 year and 3 months old, it's a captial one secured card for $400 limit that reports to his credit every month. He has 1 secured card $400 limit - Perfect payment history for the last 7 months. He has an Installment loan for about $12,000 for the last 16 months and he have about 4 payments left before he pays it off. His Current score is 719

What is his chances? My credit is 738. Where I have about 4 credit cards, oldest card being almost 1 1/2 years old. I have perfect payment history on all my cards and car loan. I have a car loan $22k that's 6 months old. I am not trying to co-sign for him because we will be trying to buy a house at the top of next year. And I don't want to ruin my debt to income ratio. 

Anyhow his yearly income is $55,000 per year, and he have a side business that brings in about $20,000 per year. 

[CramEiko]

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@Tinkerbell319 wrote:

My boyfriend is in the market for a 2016 Dodge Hellcat Challenger for $51,000.

For the last two years we've been building his credit. I made him an authorized user to my oldest card which is 1 year and 3 months old, it's a captial one secured card for $400 limit that reports to his credit every month. He has 1 secured card $400 limit - Perfect payment history for the last 7 months. He has an Installment loan for about $12,000 for the last 16 months and he have about 4 payments left before he pays it off. His Current score is 719

What is his chances? My credit is 738. Where I have about 4 credit cards, oldest card being almost 1 1/2 years old. I have perfect payment history on all my cards and car loan. I have a car loan $22k that's 6 months old. I am not trying to co-sign for him because we will be trying to buy a house at the top of next year. And I don't want to ruin my debt to income ratio. 

Anyhow his yearly income is $55,000 per year, and he have a side business that brings in about $20,000 per year. 

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IMHO.... it seems like a big purchase towards your debt to income ratio (DTI) unless you are puting a huge chunk of cash for a down payment. That will only hurt you when you go to buy a house. You might want to put more cash down on the house, the bigger picture. Just a thought. A friend of mine once told me, It's easier to get the car than the house. Getting your house first then any car you want second. Your house will be very dependant on your DTI. The car, not so much. So getting the $51k car first may not be the smartest choice when trying for a house just a year away.

Good Luck with your decisions OP....

[mavric]

First thing i would do is find out how much the insurane will be.  I'vd seen insurance payment's be as high as the car payment on this car .

 As far as a loan , the dealer will sell you the car ,BUT your not going like the terms.  IF it happens to be santander RUN and don't look back.

[Anonymous]

I have to disagree Mavric, I don't think it'll be bad terms as much as it'll be that payment. You don't need financial advice from anyone here, as I've seen people with 6 figure income default on loans due to bad money management. I don't see him having an issue getting financing, someone will finance him, probably a credit union. It's just that payment is going to be... interesting. Lets do a basic 51,000 (without taxes, etc etc) on a 72 month term at 6% APR. That's a whopping $850 payment. Again, I do not know boyfriends situation, not here to financial judge by any means, just point out numbers. However if you're a car guy... bang for your bucket in high end vehicles that's not horrible.

Has your boyfriend looked into leases for these? American vehicles like this typically lease well. Or even a PenFed Payment Saver Loan? I don't know what his plans are for the vehicle, but they're ways to consider decreasing that payment.

[Remember0]

I'll echo what the others said. A dealer can get this one through without issue -- I would push for a rate below 6%. You can also try to create some competitive tension by getting a prequal with DCU (sure maybe DCU won't approve for the whole amount but you don't need to tell dealer this as he tried to beat it). Even better than DCU for this case maybe Capital One. Cap One Auto Navigator won't give you a hard and will give you a rate to have the dealer beat.

That said, I'll reiterate that it's a lot of car for the income. We don't have the full story (i.e., presence of any assets or your income), but I'd encourage you guys rethink doing this before buying a house. It's just a big car payment to handle.

P.S.: Also $50k+ on a used Challenger?! I know it's not the same, but put me down for a new Corvette if I spend $50k+ on a car!