Question about a large auto loan

Anonymous · ‎01-09-2011

Hello Forum:

I am looking to purchase a $60k Used vehicle from Nissan. Just curious what are my chances and what CB will they pull?

I have a freeze on both my TU and EX. Equifax score is 750 FICO

Been on Job for 7 years $65k per year.

looking to get 60-72 months.

10 years of history

5 accounts positive , no collections.

largest Credit card is $15k

Only have one auto loan reported and i am looking to trade that in $20k $14k left.

Anonymous · ‎01-09-2011

@Anonymous wrote:
Hello Forum:
I am looking to purchase a $60k Used vehicle from Nissan. Just curious what are my chances and what CB will they pull?

I have a freeze on both my TU and EX. Equifax score is 750 FICO
Been on Job for 7 years $65k per year.

looking to get 60-72 months.

10 years of history
5 accounts positive , no collections.
largest Credit card is $15k
Only have one auto loan reported and i am looking to trade that in $20k $14k left.

NMAC can use any of the three CRA's and possibly pull all 3 of them.

What I see as an issue is purchasing a USED VEHICLE at almost your entire years gross salary.

IME trying to purchase a vehicle more then 50% of your reported salary is not an easy approval. Besides the fact it really isn't a good financial investment unless you can use it as a business expense and write it off.

Anonymous · ‎01-09-2011

The amount of the vehicle will not hurt me financially. My debt to income is great, and my girlfriend pays half the bills.

Anonymous · ‎01-09-2011

@Anonymous wrote:
The amount of the vehicle will not hurt me financially. My debt to income is great, and my girlfriend pays half the bills.

Creditors/lenders will not take your Girlfriend into account unless she is on the loan.

60k loan at 5% interest over 5 years is approximately $1132.27 monthly, plus insurance, plus fuel, plus maintenance. Will probably be between 45%-55% of your net pay monthly all depending on interest rate, insurance cost, how much fuel you purchase, and what it cost to maintain. The more expensive the vehicle is the more it cost in insurance, maintenance and possibly the fuel cost.

While saying you can afford it, by all means I will not disagree since you have help with other expenses. I can attest it is an investment that loses value very quickly. Besides the fact that it takes away from all the other enjoyable things you may like to do such as vacations, going out to eat, taking girlfriend out, going out with the guys, etc etc etc....

Good Luck with your decision

laz98 · ‎01-09-2011

@Anonymous wrote:
@Anonymous wrote:
The amount of the vehicle will not hurt me financially. My debt to income is great, and my girlfriend pays half the bills.
60k loan at 5% interest over 5 years is approximately $1132.27 monthly, plus insurance, plus fuel, plus maintenance. Will probably be between 45%-55% of your net pay monthly all depending on interest rate, insurance cost, how much fuel you purchase, and what it cost to maintain. The more expensive the vehicle is the more it cost in insurance, maintenance and possibly the fuel cost.

HOLY CRAP!!! people actually get car payments this high????

Anonymous · ‎01-09-2011

@laz98 wrote:

HOLY CRAP!!! people actually get car payments this high????

Nope. MOST people buying that much car have a healthy down payment or just write a check for it.

Anonymous · ‎01-13-2011

@Anonymous wrote:

@laz98 wrote:

HOLY CRAP!!! people actually get car payments this high????

Nope. MOST people buying that much car have a healthy down payment or just write a check for it.

Thats not entirely true .... I know several people with finance and lease payments that high - especially my friends who write off some (if not all) of their lease payments.

laz98 · ‎01-13-2011

@Anonymous wrote:
@Anonymous wrote:
@laz98 wrote:

HOLY CRAP!!! people actually get car payments this high????
Nope. MOST people buying that much car have a healthy down payment or just write a check for it.
Thats not entirely true .... I know several people with finance and lease payments that high - especially my friends who write off some (if not all) of their lease payments.

are they business owners, that they can just write it off? i'm talking about everyday people.

Anonymous · ‎01-13-2011

some are, some aren't. If you're making a decent living its not outside the realm of possibility to pay $1k+ / month for a car. Not saying *I* would, but the possibility is still there.

laz98 · ‎01-13-2011

@Anonymous wrote:
some are, some aren't. If you're making a decent living its not outside the realm of possibility to pay $1k+ / month for a car. Not saying *I* would, but the possibility is still there.

i'd say they are making more than just a decent living if they're okay with that kind of payment. JMO.