Need Approval Assessment Chance Please

[whocares]

2015 wasn't a good year and caused me to fall behind on various auto and credit card payments that led to some charge-offs/collections.    The CAs are the known ones that do not accept GW campaigns thus I realize they will be on my report for another 4 years.

FICO simulations show (at best) 24 months down the line I'd be in the 650s-660s, even with paying down the cards leaving a small balance (i.e. like 2% util).  Given that, I'm realistic that I won't be in a top-tier credit class and can accept it with the hope of refinancing later. 

I applied a month ago across many different lenders and was denied by all.  Speaking with those I could get a hold of, the open collection accounts were the biggest issue.  I paid both of those off in full ($7k in total) and waiting for them to update on my report. 

With all that said, I'm looking to see if I would be able to get financed at a reasonable rate given may lackluster payment performance 2.5 years ago.  The plan is to re-apply in 1-2 months after I've confirmed the closed collections and see what happens.  Please give me your honest assessment.  Thanks.

FICO8 - 628(EFX) 637(TU) 626(EXP)
FICO Auto Score 8 - 630

FICO9 - 650

Car Make: Tesla
Car Cost: $61,000
Tax/Reg: $5,855
Downpayment: $10,000
Finance Amount: $57,000

My Credit Stats:

Util: 15% ($9432/$61,000)
DTI: 19%
Income: $230,000
Rent: $2,400

Collections: 4 (None auto related - Paid in full within last 2 years).
Open Auto Loans: 2 ($15k & $13k [would trade-in $13k one])
Late Car Payments: 8x30days (2015 - closed & satisfied loans)
On-time Auto/Credit Card Payment history last 2.5 years across 3 different auto-loans
No repo ever

Thoughts?

[Anonymous]

Am I reading this right? You make 230K a year? Why are you taking out loans? You could save enough in a half a year to pay for it in cash. I would get a written budget and fast. You shouldnt need loans with a 200K salary. And infact you should be able to easily pay off all of your debt.

[redE2move]

Nice car!  But you asked for honesty and honestly it looks like you already have 2 cars.  I totally get its a WANT over a NEED but why not put yourself in a far better position and playing field by working on your scores a bit more.  With your DTI & income if you went another 10-12 months of positive history and worked on your scores you'd likely get financed into a higher tier.  On a 57k loan that would save you loads on interest.  Also, let's say you did purchase now and decided to refinance a year later (because you have stronger scores), you may have to pay additional for negative equity on that car.  So now you've invested 10k+ into the car.  Is this your forever car, or will you want the latest and greatest as soon as that comes out?  

[Anonymous]

Good advice but I wouldn't even recommend postponing buying a car for this dude. He needs to stop buying cars like ASAP. He makes a quarter million a year and he's living like he's poor, going into debt and collections, needing a loan for a car even with exorbitant rates because of his history. And as you said he has 2 cars. It is a singularly stupid way to spend cash flow. On a depreciating item that will be worth less and less until its worth nothing. With his pattern, he's going to be that poor sap stuck with permanent car payments while living a marginal lifestyle. Just putting that 500 a month (if not higher in his case) in an S&P index fund averaging 8% a year, this guys bad and excessive car purchasing would equal about a million dollars saved over a few decades. 

[whocares]

I appreciate the responses and fully agree that saving up for a car over time would be the fiscally sensible thing to do.  As I stated in my original post, 2015 wasn't a good year and I have finally dug out but the negative credit marks left behind are haunting me and will continue to do so regardless how much many I make.  I have an emergency fund already accumulated and the 401k is looking good along with the monthly contributions. Contrary to what chrismeyers2k1 may believe, I'm not living poor and my only debt would be 2 car payments with the rest of the CC debt gone in 2 months.  

I understand some opt to save money until they can purchase a vehicle outright.  I'm not one of those individuals.  I do, however, buy used cars and not brand new and understand cars are a depreciating asset.  But, they are enjoyable depreciating assets and I spend roughly 3 hours of my time in a car so I view it more than just getting from point A to point B.  Not everything in life has to appreciate in value.  

What I'm looking to know is whether a lender would approve me at a decent rate given my current credit profile (i.e. under 7%).  Again, thanks for the feedback. 

[whocares]

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@redE2movewrote:

 Is this your forever car, or will you want the latest and greatest as soon as that comes out?  

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Thanks for the response.  I believe this would be a forever car unless the maintenance costs get so exorbitant that it doesn't make any more sense to own it.  Gas isn't cheap in San Francisco (or all of California for that matter) and given this vehicle is all electric there is significant cost savings on the order of $400-500/mo in fuel.  That would obviously be off-set by the new car payment and more but it is more enjoyable than driving a Prius (no offense Prius owners).   I absolutley could wait but was hoping after 2+ years of good payment history that waiting wouldn't be as necessary.  Appreciate the feedback.  And yes, this is more want than need.