Student loans affect auto loan qualifying

[Anonymous]

Hello,

i am in college and I just got 10k in student loans since August of 2020. I am a homeowner with a mortgage and my Tahoe's engine has just died. So now I need a new car. I was wondering if my student loans will affect my debt to income ration when it's trying to qualify for an auto loan. I know my scores need a boost, I plan on paying some credit card lines down, but those student loans got me worried.

my auto 8 scores are

equifax: 632

transunion: 672

experian:650

[Loquat]

The quick answer is probably not. With you mentioning that you just obtained the student loan in 8/2020 I’m going to assume that you’re not paying it back at the moment anyway? And even still after school you’ll probably be in at least a 6 month deferment.

More important than the student loan is your overall debt to income ratio. Your scores are a little low so I’m guessing there’s something else going on in your report besides the student loans. But even still, obtaining an auto loan is probably one of the easiest loans to obtain.

Even if you’re report isn’t clean I can tell you as a former F&I guy that a good down payment can overcome a multitude of financial sins.

[4sallypat]

The safest way to "test" the auto purchase forum is to apply for Capital 1 Auto Navigator and see what their SP data can offer.

I am currently looking for a used car for my college bound son and Cap 1 offered $50K at 2-5% on a used car with 20% down.

I love the Cap 1 service which allows the dealer to try and beat that rate because they can't jack up the rates like they do with their lenders...

[Anonymous]

I just bought my house in April 2020, and my credit cards are at 28% on capital one and 79% on chase. Plus a retail loan with fortiva for vivint for the security system. I plan on paying them down before I apply but I know I need a down payment regardless. 

[Anonymous]

I did do a prequalify with capital one and they said 50k with 10% but I don't wanna do that. I want like 25k or less, I just need a little car for now. I did another prequal with a credit union and they told me 40k, and a prequal with chase and they told me 35k. Hopefully they are close to my real approval rating once I do hard pull. 

[4sallypat]

The Cap 1 prequal shows the maximum you may borrow.

You don't have to get a 50K car - I am looking at a used $10K car where I need financing for 12 months.

What interest rates did Chase and your CU say ?

[Anonymous]

The chase apr was 3-6% depending on car and price. The credit union was 2.49 but has to be less than seven years old with 3% down

[Loquat]

I tend to lean towards credit unions for finance unless one can obtain better rates with the dealer captive.