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Hello,
I'm currently in the market for a possible new car. I've been working hard at rebuilding my credit, and after having high interest loans for older cars for as long as I've been driving I'm ready to finance through a bank or credit union. The info in my signature is correct and up to date. I'll include some data points from my credit report below:
Credit Score: TU - 684; EXP - 667; EQ - 670
AAoA: EQ & EXP: 5 years 1 month; TU: 3 years 10 months
# of positive trade lines: 8
# of negative trade lines: 1
Income: $30,000/yr
Lenght of Employment: 3 months (previously 6 and a half years)
Previous Loan Experience: 2 auto loans (1 with 11 late payments)
Debt-to-Income (DTI): 0 (No rent or mortgage payments and I pay my credit cards off every month)
Year of Car: 2017
Miles: 33,000
Purchase/Refinance: Purchase
Requested loan term (XX Months): 60mo
Down payment amount: Looking to trade in current vehicle (2012 Hyundai Sonata with an est 133k miles [paid off])
Co-borrower/Co-Signer: None
Other: My FICO Auto Scores: EQ - 652; TU - 672; EXQ - 617
The car I'm looking at is an Audi A4 Premium that's priced at about $28,998. What I want to know is can I possibly get financing through a bank or credit union? Right now I currently have accounts with NFCU and Chase Bank. I'm also open to using Audi for financing. Again, right now I'm shopping around (looking to purchase by my birthday which is in July). Any and all advice is appreciated.
TIA
I think your main hurdle will be the fact that it's a 10 year old car. Most lenders won't offer a loan for a vehicle that old or with that many miles.
@Brian_Earl_Spilner wrote:I think your main hurdle will be the fact that it's a 10 year old car. Most lenders won't offer a loan for a vehicle that old or with that many miles.
If I can't trade it in, I was thinking of selling it. What do you think are my approval odds without anything to trade or any money down?
Thanks for your input by the way!
Agree with the above. I don't see any of the major banks wanting to touch that loan.
You need to consider that this is an older german made car, which can be expensive to repair anyway. Add to that that even if could get financing, you'll be financing 100% of your yearly income.
I would urge you to reconsider. You can buy a brand new Honda Civic for 50% less than that, get a warrenty, and not have a huge payment.
@ldkcivilservant wrote:Agree with the above. I don't see any of the major banks wanting to touch that loan.
You need to consider that this is an older german made car, which can be expensive to repair anyway. Add to that that even if could get financing, you'll be financing 100% of your yearly income.
I would urge you to reconsider. You can buy a brand new Honda Civic for 50% less than that, get a warrenty, and not have a huge payment.
I think I put the wrong car info in my data points (I put the car I want to trade/sell). I'll update that in the original post. The car I want is a 2017 Audi A4 Premium with 33,000 miles.
My usual advice is to look for a car that is lower than 50% of your gross income
Income: $30,000/yr
Lenght of Employment: 3 months (previously 6 and a half years)
The car I'm looking at is an Audi A4 Premium that's priced at about $28,998.
the other issue is your 3month tenure - i do get that you have a previous tenure of 6+ years, so that helps
but getting a 99% loan to salary is a bad idea
also, though low miles, a 5 year old Audi will start having issues, regardless of miles, and they will be in the $600-$1200 range for each repair
i would suggest a newer, $15k car with some warranty left
@RSX wrote:My usual advice is to look for a car that is lower than 50% of your gross income
Income: $30,000/yr
Lenght of Employment: 3 months (previously 6 and a half years)
The car I'm looking at is an Audi A4 Premium that's priced at about $28,998.
the other issue is your 3month tenure - i do get that you have a previous tenure of 6+ years, so that helps
but getting a 99% loan to salary is a bad idea
also, though low miles, a 5 year old Audi will start having issues, regardless of miles, and they will be in the $600-$1200 range for each repair
i would suggest a newer, $15k car with some warranty left
Thanks!
@lovebackwards wrote:Hello,
I'm currently in the market for a possible new car. I've been working hard at rebuilding my credit, and after having high interest loans for older cars for as long as I've been driving I'm ready to finance through a bank or credit union. The info in my signature is correct and up to date. I'll include some data points from my credit report below:
Credit Score: TU - 684; EXP - 667; EQ - 670
AAoA: EQ & EXP: 5 years 1 month; TU: 3 years 10 months
# of positive trade lines: 8
# of negative trade lines: 1
Income: $30,000/yr
Lenght of Employment: 3 months (previously 6 and a half years)
Previous Loan Experience: 2 auto loans (1 with 11 late payments)
Debt-to-Income (DTI): 0 (No rent or mortgage payments and I pay my credit cards off every month)
Year of Car: 2017
Miles: 33,000
Purchase/Refinance: Purchase
Requested loan term (XX Months): 60mo
Down payment amount: Looking to trade in current vehicle (2012 Hyundai Sonata with an est 133k miles [paid off])
Co-borrower/Co-Signer: None
Other: My FICO Auto Scores: EQ - 652; TU - 672; EXQ - 617
The car I'm looking at is an Audi A4 Premium that's priced at about $28,998. What I want to know is can I possibly get financing through a bank or credit union? Right now I currently have accounts with NFCU and Chase Bank. I'm also open to using Audi for financing. Again, right now I'm shopping around (looking to purchase by my birthday which is in July). Any and all advice is appreciated.
TIA
I think due to those things I highlighted in Bold, Red that you will have a problem getting a loan without at least a co-signer, or if you do get one the APR rate will be through the roof. BUT if you want to try a Credit Union you have good history with is for sure the place you want to try.
I wanted to provide an update to my post: I was approved! Bought the car yesterday and just picked her up this morning!
I vastly underreported my income (by about $10,000!) which helped in my approval. I financed a 2017 Audi A3 2.0T Premium. The base price was $24,556 but after two warranties, taxes and fees it totaled out to $31,296.80 with a $1500 down payment. My payments are $548.83 a month. Capital One offered me a little over 10% interest rate, but Chase beat them with 7.89% over 72 months. They pulled my Equifax and my score is/was 670.
I'm super excited because this was my first purchase that didn't have double digit interest (my last car was financed at 22%!). I've been reparing my credit for about 18 months (scores are accurate in signature), and I'm really proud of myself. I plan to refinance in 6-12 months for a better rate but I wanted to share with you all my success.