Chances of getting financed?

[Anonymous]

Hi- as you can see I'm new to the forums- stumbled in here on a google search and seems like the place that can help me with my goals!

I'm looking to trade in my vehicle and purchase either a new or used.

My debt to income is 16(debt) to 84 (income).

I have no accounts in collections, no bankruptcies, etc.

I have been at my current job for 4 years.

My current score is 640.

I'm looking at breaking even to having $1,000-2,000 equity in my vehicle when I trade it in.

What do you think my chances of getting financed for around $28-29,000 are? And what kind of interest rate?

Thanks in advance!

***also- my income is good, about 60k a yr, no rent etc***

[Tazman81]

How is your overall credit utilization?  I.e. Do you have any  credit cards, and if so, what percentage of them are utilized?  Based on what you've listed it seems you would have a decent chance at getting a vehicle loan.  Understand that I am not trying to be discouraging, 640 is an okay score, but I do not think it will qualify you for the lowest interest rates for a vehicle.  I am guessing somewhere around 9-12% or so.  (I hope I am wrong about that and it is lower).

I would be mostly concerned with how much the monthly payments are going to be.  Do you have any amount that you could put down on the vehicle?  Likely by the time they add in processing, taxes, warranty, you will be looking at a loan for about $33k.  Take it from me, even though you are at a decent debt ratio, you don't want a carloan skyrocketing you up to 50% ratio.

If you have a good relationship with a bank, you should go into them to see if they can pre-approve you before you go to the dealership.  That way you can actually think about how much it is going to be monthly and it makes it easier not to do that "inpulse buy" that so many of us have been guilty of in the heat of the moment.  Good luck, and let us know how it goes.

[Anonymous]

Thanks!  The list price on the car is 26, so I figured it'd be in the high 20's when the tax and licensing goes in to it. I'll be trading in my vehicle and will have some additional cash to put down on it. I have 1 credit card and it's barely got anything on it--- I pay it off in full each month. Right now I'm paying $560 for my vehicle and would really like to see my monthly payment drop at least in to the 4s.

[Anonymous]

In March I bought a  used vehicle for $26K with a 635 TU FICO.  I didn't put anything down and was approved at 8.5% thru Cap1 (online) and 7.99 at the dealership.  So it can be done.  I do however have a long and clean history with auto loans dating back to 2000 (no lates/repos, etc).  My CC history, however, is shady although the most recent bads are >=5 years old now.