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Chances of financing a car?

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Anonymous
Not applicable

Chances of financing a car?

I am looking to finance a car come January. My current scores are hovering around 610-625 depending on which credit agency you pull.

I have three collections and one charge off as listed:
ERC for Charter Communications: $227/$352 paid off, no prior agreement for pfd going to negotiate a goodwill deletion.
Convergent Outsourcing for T-Mobile - $457/$911 paid off, no prior agreement for pfd going to negotiate a goodwill deletion.
Regency for Patients First - $83/$83 paid off, working a goodwill deletion now.

My one charge off is from Macy’s which is being collected by Citibank - $200/$334 paid off, going to do a goodwill for deletion.

I have ~$7,500/$8,300 in student loans, I am a current student. No missed or late payments.

My credit utilization is $45/$1500 between three cards. No missed payment or late. Cards open for about 5 months.

Score should jump up a couple point between now and then. Highest I anticipate is 650-660, maybe less or more depending on how the goodwill campaign works. All debt will be paid in full end of December at the absolute latest.

This would be my first true car loan as I always either saved up and paid cash or bought private. I have $3,500 down payment and what I am looking at are low mileage late model luxury cars. Income is $38,000 while going to school. Was at $59,000 last year before deciding to go back to school. No other obligations.

Cars that I am looking at:
2017 Mercedes-Benz C300, 15,700 miles and $22,599. No incidents and clean title.
Or
2017 Alfa-Romeo Guilia Ti 16,230 miles and $25,000. No incidents and clean title.

My ambition is the Alfa but I’d settle on the Mercedes.
18 REPLIES 18
Girlzilla88
Valued Contributor

Re: Chances of financing a car?

Ask them how many banks/lenders they work with the more they work with the higher chance you have also keep in mind PreOwned vehicles no matter how great they are come with a higher apr/payment 9/10 than a New vehicle.    See if you can get approved through your current Bank/CU FIRST and take that to the Dealership if possible to help keep you from getting a ton of inquiries some places will do their best to keep it low while others will hit you with 70+ inquiries with no cares in the world.      600's is a good place to be 650 and higher would be better but make sure also you are reviewing your Car/Auto Scores and not your Bank Scores.    Smiley Happy     If you can get that collection removed that would help greatly.   They tend to not care about Student debt or Medical Debt (doesn't seem like you have Medical?! unless that is what the Patients First is?!)    Once your cards hit the 6 month mark that will help too.    And also I can't stress this enough if you do get a PreOwned GAP GAP GAP and EXTENDED WARRANTY lololol.      







Message 2 of 19
Anonymous
Not applicable

Re: Chances of financing a car?

First off, thank you for the quick response!

My current Experian fico8 auto score is 598... much lower than my other FICO scores. How would I increase this score other than obviously getting an auto loan and making payments. Sorry if a dumb question, I just don’t understand this scoring.
Message 3 of 19
Girlzilla88
Valued Contributor

Re: Chances of financing a car?

No problem sorry for this late reply but Check out what it says is hurting your score if it is something like to short of history that you can only help with time but if it's something like High Utilization then of course that you can work on ASAP.      I'm not sure what state you are in but for example my state (Ga) the dealer I work for our average customers are lower to middle 500's BUT we also work with over 52 different banks and lenders so that is why I mentioned before see how many banks they work with (I still stick by the check with your CU or Bank FIRST) to avoid extra hits that may be not needed....but if the dealer works with more lenders it does make them able to be more flexible when it comes to programs, negotiating price, credit ranges etc....So if the dealership you are looking into only works with 10 or less then I would def. shoot with trying to get your own Financing as they wouldn't be as lenient or may not be able to offer some things as someone that works with over 20 etc.      Is the 598 your middle Auto?!







Message 4 of 19
Girlzilla88
Valued Contributor

Re: Chances of financing a car?

But removing those collections will def. help a month or a few months after removed for sure.     You may see a drop at first since it may affect your Age of information BUT it will help in the long run most definitely.







Message 5 of 19
Anonymous
Not applicable

Re: Chances of financing a car?

Honestly, I don't believe your scores are high enough and you don't have comparable auto credit for a lender to loan you out $20k+
as a first time buyer a bank's realistically going to want you to be at $15k amount financed or less.
Message 6 of 19
Girlzilla88
Valued Contributor

Re: Chances of financing a car?


@Anonymous wrote:
Honestly, I don't believe your scores are high enough and you don't have comparable auto credit for a lender to loan you out $20k+
as a first time buyer a bank's realistically going to want you to be at $15k amount financed or less.

It all depends on the dealership honestly you would be right that being a first time buyer it will be a bit more interesting but again it all boils down to the dealership in question...Ex. we have First Time Buyers Program at our location and have helped students with 500's CS into a vehicle that is right at 20 a few over 20k depending on what they have to put down etc....If they don't have a program like that or only work with a handful of lenders...it will make it harder....just do your homework on the place with the vehicles you are interested in.  Smiley Very Happy







Message 7 of 19
sccredit
Valued Contributor

Re: Chances of financing a car?

Do not buy a preowned Alfa

Message 8 of 19
Girlzilla88
Valued Contributor

Re: Chances of financing a car?


@sccredit wrote:

Do not buy a preowned Alfa


Ooooooo interesting what are your experiences?!  Smiley Very Happy







Message 9 of 19
Anonymous
Not applicable

Re: Chances of financing a car?

Im trying to get a lease and its brutal, my scores are so diff idk what to do ....

fico auto 5,4 &2 are

eq 692 tu 658 exp689

fico auto 9

eq 642 tu 700 exp 666

fico 8

eq629 tu 623 exp 624

 

i have 3 cc's all $0 bal 2 are $500 limit and 1 $300 also have a vcfrnt card $3000 limit $0 bal.

i owe a lvnv $640 from an old credit one card from 2016 they wont remove even if i pay in full

anyway i need advice and help I have already been told i need a cosigner??? just confused thought i would be good

 

Message 10 of 19
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