Pandemic Auto Loan Qualifying

[TXPocohontas]

Hi Everyone!  I hope this finds ya'll healthy and financially maintaining.

I would like to get opinions on my situation:

Last April (2019) I tried to qualify for a car loan and could not get anyone to approve me with only $1500 down.  I ended up leasing a car thru Fair.com.  I got a 2017 Nissan Sentra S in perfect condition with only 17k mileage.  Right before Christmas, Fair started emailing me offers to turn in the car.  I liked the car and did not want to turn it in (after all, I had signed a year lease).  Then in January, Fair informs me that although I have been giving them money for insurance, I would have to pay $900 a month for insurance or get my own.  Keep in mind that my car payments have been on auto draft to be taken out the 27th of each month so never a late payment.  I go get insurance with the high coverage to match what they require and basically pay the same I was paying them for insurance ($150/mth).  Last month, they took my car payment out 12 days early!  No reason given.  Thank goodness I had the money in the account to cover it. I called my bank and explained the situation.  They blocked Fair from trying take another payment out on the 27th.  I emailed Fair to inform them I was revoking my permission for the auto draft.  They do the "we changed billing companies and we are sorry you went thru that" song and dance but charged me late fees they are "looking into".  I decided to have them come get the car this Friday before the next due date so I can be rid of them.

I just closed on my house on 2/5/2020 and my mortgage company will not report my mortgage until after I make my June payment.  I just got my stimulus check.

So here is my question:  With me being let go from my job due to this pandemic, will I be able to qualify for a car loan?  I am obviously getting unemployment which has helped me maintain paying my bills on time.

No bankruptcies,  No judgements, 1 bad car loan about to fall off next year (lemon car from 2014) and a couple of collections ($1500 total), 1 credit card in great standing (8% of $300 limit) since December 2019.  I was making $60k/yr and will be able to do that again once my field starts hiring again.

My best friend says I should get the car loan if I can - only if I am not worried about another 10 inquiries on my reports.  I am not trying to go crazy.  I want to spend no more than $15k total putting down $1500 cash.  Is it better to wait until the mortgage shows on the credit report or go now?  Will being unemployed, despite being employed consistantly for 4 years prior matter?

FYI Carvana would have financed had I still had a job. I tried them first.

Any respectful thoughts would be appreciated.

Current Scores:  Ex 602   Eq 643  Tu 640

Stayed blessed! 

[Brian_Earl_Spilner]

Are you furloughed, or unemployed? Being furloughed implies you'll be returning to your position at some point and would make it a possibility with a bank or credit union you have an existing relationship with.

[TXPocohontas]

They shut down all of their Texas locations permanently so I am unemployed not furloughed.

[ldkcivilservant]

I'm afraid no one is going to loan a bunch of $ to someone for a car who does not have any form of stable regular income, unless of course you can show them that you have lots od reserves and in that case why not buy a car for cash?

You need to reasses your priorities - finding a job has to come first before you worry about taking on more debt IMO.

[TXPocohontas]

@ldkcivilservant  It is clear that you did not comprehend my writing.  I am not the typical person  who overextends themselves, which is why my credit report is so bare compared to most.  I carefully choose my debts.  Now as far as my priorities, I live by Dr. Phil's rule of "If you don't have a job, then your job becomes finding a job" 8 hours a day 5 days a week.  I have been on the hunt since being dismissed with the rest of my office staff.  The pandemic has caused my field to come to a standstill.  They are not hiring...yet.  The menial jobs have told me I am overqualified and will not hire me.  I have been in constant contact with my TWC rep each week as well and she states I am more actively job hunting than most people (3-4 pages of job application records PER WEEK).  So do not lecture me on priorities of finding a job.   In the meantime, my bills are paid on time, every month.  I am giving a lease car back and trying to purchase a car so I will have lower monthly car payments since my credit is better.  What I do is calculated to be reasonable, not perfect.  Your response to my post was useless.

[Remedios]

I think they comprehended your writing just fine. 

You're unemployed, planning a large purchase. There wont be anyone telling you to go ahead. 

Besides, right now, there will be some kind of employment verification.  Unemployment benefits do not fall under income. 

[ldkcivilservant]

OP, in what world do you think I misunderstood you?

I fully understood what you're saying, and I stand by my statement that no one in their right mind is going to loan someone with no income thosands of dollars for a car.

I also find your statements about being in a good situation to lack credability bearing in mind your credit scores and your admitted preiovus bad debt. Those scores show the presence of serious deliquency. Add those scores to your lack of income and it's a deal killer on financiing.

Sorry you don't like that fact, but it's the truth. I also find it interesting that you find that to be a lecture, if you are so well off, why would you care? If you are managing your finances so well, why not buy a beater until you find a job?

It's a typical case of want rather than need. I have been guilty of it too, but it's my opinion that you should reassess bearing in mind your current employment stuation. However it doesn't matter to me, so do what you want. I certainly won't take offense the way you have.

[Anonymous]

OP, it sounds like you are working hard to find a new job. That is good and I hope you do find something soon. Unfortunately, a lender is not going to accept the Dr. Phil "my job is looking for a job". They care what job you have right now, and if that job can support paying them back.

Are you getting unemployment, and if so can it support the car and house payments? If it's not too late, I'd try to keep the car you have awhile longer until you are employed again. I know you aren't happy with Fair, but your options are limited. If you turn it in you are likely to wind up with no car, or scrambling to get something from a sub-prime "buy here, pay here" dealer at awful terms.

[Anonymous]

---

@TXPocohontas wrote:

... I would like to get opinions on my situation ...

---

A good one was offered by @ldkcivilservant  in Post #5.

This member took time to consider YOUR situation and offer an opinion, that YOU had requested in YOUR original post. Your reply to this kindness was very poor form. 

If I had authority I'd close this thread. 

[Dj4Money]

 Without this getting out of hand as people insert their opinions instead of offering information the OP can use, let me jump in here.

 You have a source of income. People telling you this and that about overextending themselves should go tell that sh*t to the millions who get SSI-D and still manage to get car loans.

 This is the classic, I hope you don't do it because I wasn't able to do it or I think it's too risky to do it and don't even try.

 All they can do is say no. Personally I found Carvana unacceptable. I have a BK and they wouldn't allow me more than $10,000. That's nonsense. I went to Capital One and that's what I would recommend as well. Capital One gave me a $25,300 limit that actually worked out to about $18,000 out the door with between 15%-20% interest.

 Capital One will take any income you are generating as long as there is a paper trail. Unemployment is income, you have proof you get it. Not everybody can get UI, so why wouldn't it be accepted?

 Plus you can work, you can always do Postmates, UberEats, Caviar or Grubhub. Since people have been recieving relief from the CARES Act, combined with less people out doing any driving, I've been making $800-$900 a week and that's only working 5 pm to 2 am, most of the time less than that.

 I have screen shots for any doubters, I dare ya. Combined with tips I'm over $2,000 in past two weeks. I also got EDIL check ($1000) and the Stimulus Check ($1200).

 I'm waiting on PPP.

 Try Capital One. I didn't buy a car because dealers being who they are didn't want to give me the deal I want so either I walked or they walked away from them.

 My FICO Auto 8 is low and remain so until I buy a car and I will re-apply soon.