Do I qualify for a new auto loan – Los Angeles county – 6/2/2019?

[ShastaCola]

Do I qualify for a new auto loan – Los Angeles county – 6/2/2019?

Purchase price:  $42,000

Down payment:  $8,000

Loan amount:  $34,000 / 60 months

Income:  $58,000

Debt-to-income Ratio:  1%

Credit Usage:  13%

FICO Score 8:  Ex.698  Eq.686  Tu.703

Time at job:  3 months

I am 20 years old and a full-time student.  I have approximately $12,000 in student loans (original balance was $14,800).  Loans are on deferment until December 2022.

[Anonymous]

Yes, the answer is almost always yes because car loans are secured by the car so the difference between subprime and highly qualified buyers is interest rate and down payment.  In your case you have good scores and looks like you have good income so it won't be a problem.  I strongly suggest getting a preapproval from a credit union before you go shopping that way you have an amount and interest rate to go by.  Dealers love young buyers and will almost always add a point or two on to the interest rate if you let them arrange financing.  Having that preapproval keeps them honest and will make them work to beat an honest rate if they want to arrange financing for you.  Also be cautious about any protection plans or extended warranties, they put you in a further negative equity situation and if your buying new or newly used the car has a warranty already.

[pinkandgrey]

Yes, you will qualify. 

First: ANYONE can get approved by a dealership

Second: your credit looks pretty good and you have a decent down payment, so I see absolutely no issues. 

Good luck and enjoy the car!!!!