Chances of auto loan approval

[amp0804]

I'm in desperate need of a new/used car come first quarter of the new year. I make about 40k a year with barely any bills. I have a 5 year credit history with a 3 year average. I only carry a balance on one of my cards which will be completely paid back down to $0 before Feb. from a balance transfer from after Thanksgiving. I have never previously had an auto loan on my credit. I have also never had a missed payment nor do I have any derogs on my credit file.

Im really only interested in borrowing 15-16,000 if I purchase a used car from a dealership, if its new it will be around 28,000.

[llecs]

What are your two FICO scores?

Is $40k gross or net?

[amp0804]

Gross, currently only have EQ no Transunion, 710. Was 737 last month but I took a hit from balance increase and new account.

[llecs]

How much are you paying in monthly obligations? How much are housing, car loans, other loans, CC min. payments combined? That's the biggest determinate. So, you'll have a $12k+ down payment?

[amp0804]

Absolutely nothing besides cell phone and possibly health insurance around 150-200 a month

[llecs]

No rent or mortgage?

I saw on another thread that you have TMCC? Do you still have that? You don't have any CCs with a balance reporting?

[Anonymous]

Chances will be low since you dont have any Auto Credit History. I had roughly the same amount of credit you have, my Credit FICO was 774 when pulled, Perfect credit basiclly. No one would give me a loan. The following banks declined me because of my lack of auto credit. So i would stay away from the following banks if your looking, but go ahead for the bigger banks if you have 20% down payment.

Wachovia

Chase

US Bank

Bank of America

Citi

Bank One

Up2Drive

BMW FS.

My last attempt to get a loan was from National City Bank. (PNC owned) I was approved within 24 hours for $31,650.00 with no money down, at an interest rate of 5.269%

Good luck in finding you car!

[Anonymous]

(Not sure about the current market) but in April of 2008 I was able to pick up a decent loan from Honda Financing (24k @ 7.89%) for a new vehicle.  Other companies wanted to stiff me with an 11%+ rate.  My credit wasn't the best and at the time I was making 40k.  I've built my credit up a lot in the past 2 years so I shouldn't have an issue moving forward.

I'm just stating that if you're interested in a Honda, you might get the same if not better financing I received.

[laz98]

i have heard that honda financing is tough & conservative.  true?