I am in the market for a 3/4 ton truck, and was wondering what my approval odds might be? I am looking at trucks in the $60K-65K range and will be trading in a truck which I should break even on the trade ,and not be stuck with negative equity. I have $15K to put down as down payment. My FICO 8 scores are 651EQ and 657EX. I recently just paid off all my CC debt which was at 83% uti, so I’m hoping to see a 20+ point increase on my scores when they update next month. I have have verifiable annual income of $240K and my current DTI is only at 12%.
thanks in advance for your replies.
Welcome to the Forums! Late last month, I purchased a new 2018 Ford F150 and financed it through Ford Motor Credit at 0%APR with zero downpayment. I chronicled my experience in this thread. My truck was less expensive than yours; my income and scores were higher, DTI = 16%; and I had no trade-in. But based on my experience, I don't think you'll have a problem getting financing.
That said, I would encourage you to consider waiting a few weeks before visiting the dealerships, for a couple of reasons. First, the financing deals and incentives offered by FMC, GM Finance, and others early in the month and year and relatively weak. I'd suggest waiting a few weeks to see if they renew their 0% financing offers. Judging from past experience, I suspect they will. Also, waiting a few weeks would also allow your FICO scores to rise, which will make your experience with Ford, GM, or Chrysler even easier. Ford pulled my FICO Auto 8 scores from all three credit bureaus, so make sure you know what yours are.
Based on your income, downpayment, trade-in, and credit history, I suspect the truck dealer will be delighted to see you. I've seen folks with a lot less get approved. Your challenge will be to get the best deal you can, meaning combination of price, incentives, rebates, and financing terms. Negotiate, negotiate, negotiate! Do your homework ahead of time so that you know the invoice price for the truck(s) you want. Cargurus, Edmunds, KBB, and other sites will give you all the information you need and even help you find trucks in your area. Last month, I was able to negotiate a sales price for my truck that was 16 percent less than MSRP. You might do even better!
Good luck and keep us posted!
Thanks for your reply. I do plan on waiting a month or two before going to my Credit Union, and Dealerships. I will let everyone know the outcome.