Do I have a chance?

[Anonymous]

I just received a promotion and have my heart set on purchasing a BMW, purchase price around 43000, however I have credit issues and is wondering if I have a chance.

My annual income before promotion is $67,000, I have 10 baddies on my credit report, between 2009-2010 I had overextended myself in credit and had several lates, non-payments.  All negatives have been paid off.  Last late payment was in 2010.   I have a mortgage of $245000.  Never had a late payment.  I have 2 auto loans history, both PIF, no lates.  I currently have 1 credit card, utilization is high, CL is 16500, I owe 15000, never had a late on that card.  My last score was 640.  I think I need a new car as my current vehicle is over 8 years old and starting to have issues. 

[Jutz]

That UTIL is killing you.  You're at 90%.  What's your downpayment?  Do you own your current car?

[Walt_K]

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@Anonymous wrote:

I just received a promotion and have my heart set on purchasing a BMW, purchase price around 43000, however I have credit issues and is wondering if I have a chance.

My annual income before promotion is $67,000, I have 10 baddies on my credit report, between 2009-2010 I had overextended myself in credit and had several lates, non-payments.  All negatives have been paid off.  Last late payment was in 2010.   I have a mortgage of $245000.  Never had a late payment.  I have 2 auto loans history, both PIF, no lates.  I currently have 1 credit card, utilization is high, CL is 16500, I owe 15000, never had a late on that card.  My last score was 640.  I think I need a new car as my current vehicle is over 8 years old and starting to have issues. 

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You just got out of a problem where you overextended yourself, but you are contemplating a $43K car while still carrying $15K in CC debt?  Couldn't you get by with a cheaper car?  I mean, you can still get very nice cars even in the $20-$30K range, which is arguably still more than what you should be considering. 

I don't mean this to be overly judgmental because I recently climbed out of a bigger hole than you are in.  But I'd consider a cheaper car.

[ds3]

I don't want to sound preachy, but buy a cheaper car. $15k in cc debt is going to eat you alive. I make twice what you do, have a 19% DTI ratio, including my mortgage, and still feel like I'm drowning in debt. I feel your desire for a new BMW. I looked at one for a looooong time before I drove a VW Passat and realized it was close enough for 2/3 the price. Just because you can swing it doesn't mean you should.