I am in need of a car. I was not approved because my income fell slightly short of 2k a month and my credit is limited to one student loan. I am able to get a cosigner (husband) which would put our income around 2800 a month but his credit isn't great. Do you think this would hurt my chances of getting this car? The car is 19k. Our combined monthly income is about 33k yearly.
A lot of auto lenders will use the higher credit score of the two applicants unlike the mortgage industry where they use the low middle score. Adding your husband will probably put you over the qualification barrier for income. I would just work with the finance manager at whatever dealership you choose to get the purchase done. Make sure you are comfortable with the requested down payment and monthly payments in relation to whatever other obligations you have. Then if the terms of the loan are not to your liking you can spend 6 - 12 months improving both your and your husbands credit profiles and refinance the loan with another institution for better terms.
I know that a lot of people on these forums have been able to get surprisingly good terms on auto loans with scores in the mid and low 600's.
Have you thought about getting a cheaper car???? 19K loan on that income is really pushing it. I know this because i am making 21K/year and i couldn't even afford that and live comfortable with the way insurance rates are with new cars. I know Toyota is pretty good about getting people approved with limited income.
The ones you read about on the approval thread have triple the income that's why they are able to secure such a good rate.
All you need to do. Save some money for down payment. Use people with high score be main application, another with cosigner.