New Dodge Ram financing

[Anonymous]

I’m looking to purchase a new $50k Dodge Ram for my business. I’m currently only grossing around $40k annually. I’m hoping someone can shed some light regarding approval odds and advice on what direction I should go. I know 98% of the time credit Unions will give better rates but in my situation, I’m not confidence they’ll approve me due to my income. I don’t know who dodge finances through but more than likely I’d get approve with a higher rate. Anyone know what scores the dealer pulls?

[Anonymous]

the dealer sent me a link for a pre-approval. Is this a hard pull? Also, any chance I can take that pre-approval to a different dealership to see who could give me a better rate?

[Anonymous]

I think you will have a hard time getting approved for a 50k auto loan with your current reported income. Most lender's will typically have a max PTI of 18% which in your case would be 600/Mo max payment. Even with a 4% rate at 84 month's (I strongly suggest avoiding an 84 month term especially on a new vehicle, and a dodge at that) you wouldn't qualify based on PTI limits. Why not look for something cheaper that would be more affordable on paper, until you grow your business and income? You can find a quality, pre-owned truck much cheaper than 50k, while using the money you save in order to re-invest into your business to grow it.

[Anonymous]

Thank you for the feedback. I can lease a new 3500 for .21 cents a mile but I’ll be driving around min 10k miles a month which would put me at $2,100 min a month. I wanted that extra $6-$1000 put back into the business. I’d be comfortable paying around $1,200-$1,400 a month for 48 months but it’s up to the bank. A lot of dually’s in the $30k range already have well over 60k+ miles

[Anonymous]

I suspect it will be tough to get done but dealerships only make money when they sell cars/trucks so they are highly motivated to get it done.  What are your scores?  Income is important but they will overlook income to some extent if you have great scores. The lower the scores the more important the income becomes because they are of course concerned with default risk.  

I would suggest a good used dually with diesel powerplant.  They can be driven several hundred thousand miles so 60,000 miles on diesel dually is just barely broken in really.  

The dealer credit link will result in a hard pull.  

[Anonymous]

Dealership stated it was a soft pull, of course they would.

I’m assuming they pull auto scores. Here’s my Fico auto scores:

5,4,2
726 734 704

8
746 761 717

9
785 760 766

[Anonymous]

Solid scores so you'll have much easier time.  I would get a preapproval with Penfed or DCU, that will give you a good indication of what you can qualify for and then you can narrow your options from there.  

Let us know how it all works out.

[Anonymous]

DCU uses mortgage 4 apparently.  I read that somewhere around here.

[Anonymous]

I can’t remember but it was a year or two I was declined, too many inquiries. It was roughly around 5-6 inquires. Those since fell off but I have new ones so going pass with DCU.

I’ll keep you guys posted, if it’s not a new 19 maybe a new 18. Looks like a few dealers are offering 0% apr for 60 months so it’s something to consider but I’d rather pay the truck off within 36-48 months.

[Anonymous]

Anybody know when filling out the app, does it matter if I choose business or personal? The truck will be for business use but my business has no credit