@betterdays2011 wrote:Hi all: I am looking to replace my car which was totalled in an accident 5 months ago. I was injured and have not been able to drive but am hoping to be cleared soon. Shortly after the accident, I somewhat impulsively applied for a loan before I realized the extent of my injuries with Lightstream (Suntrust had been our lender for our previous loan). I was denied based on DTI and high utilization. My FICO auto scores are between 620 and 675, FICO 8 are 694, 700, and 704. A couple months later, I went to NFCU where I was also denied based on the same issue. A couple people advised me to apply for a reconsideration which I should have done but didn't . I was pretty depressed about my physical health and lack of progress and the denialsnk really got to me.
My doctors and physical therapists say that I should be good to drive in the next two weeks so I am going to start this process again. I know what we can afford based on what we were paying before and our current circumstances. I would be putting down approximately $15,000 on a used car that would be between $20,000 and $24,000.
Anyway, long story short, i may approach NFCU again and request a reconsideration but at this point I think my best bet might be with the dealership itself. However, I have read some scary things about bait and switch. Can you tell me what I should look for (warning signs before the credit pull process begins and then after)?
I have purchased three new cars in my 30 years driving so I am really pretty inexperienced with this given my age. Thanks in advance.
Well first and foremost thank God that you are alive and well...I would take that $15K and pay down the debt that is making your DTI and utilization so high and THEN go to NFCU and ask for a recon based on new information and hopefully updated FICO scores to reflect the decreased util and DTI. Also use a car buying service such as True Car to make the process as hassle free as possible. Once you have identified your car and if you have financing already secured via NFCU via True Car go to the dealer and say I want that one right there and here is the check. Also if you have any extra funds please pay the Tax, Title, and Tags (Fee), Doc Fee, and any extended warranty OUTSIDE of the loan. Just make sure you are paying for the cost of the car itself. I hope that this helps and please get better on your road to recovery 
@betterdays2011 wrote:Thanks for the feedback. I do see the wisdom in using the 15K (money from the insurance on the totalled car) to pay down debt and improve DTI. My thinking had been we will need this car very soon even if I am not able to drive and I thought a higher down payment might make a lender more willing to loan us enough to cover the difference in the value of our old car and the cost of a new one. I also don't want a large car payment.
I want to replace the car with a used late model that is the same as the totalled car. I want a safe car that works for our family and that car saved our lives. Also hoping for lower mileage than we had to extend the use. Unfortunately, we really will need to purchase a vehicle as soon as I can drive. We have been getting around using Uber, etc. and I can't afford to keep this up much longer. I do expect a good settlement from the driver at fault's insurance company but we are no where close to settlling and I can't factor that in.
Ahhh indeed I see the urgency of your situation..I would go with a Certified Pre-Owned (CPO) and use True Car it takes ALOT of the hassle out of getting any car. What is the price of the car that you have in mind that you are looking at? From there I would put down 20% of the cost and use the left over to pay for TTL, Doc Fees, Dealer Fees, and extended warranty OUTSIDE of the loan which will LOWER your payment. In the end you are only paying for the actual price of the car versus dealer fluff....
