They asked for more down

[superdad]

So I went to a local dealer yesterday looking at a new car. Told them I had 5k for a down payment. They ran my credit and said that the car was to expensive for me.  I dont see how thats possable. I have no debt, which i figured was a good thing. Theres nothing on my credit report that i make monthy payments on. So my dti is 0. They said if I came up with 15k they would hand me the keys.  I was like your kidding me!!! 15k? I even told them I could easly afford 600 month car payment. 

I though about trying another lot but dont want to burn another inquries plus they submitted it to 5 places because it showed up on my CR. Is there anything i can do?

  I did open a capital 1 secured card but have not recived it yet. I have about 8 fairly new collections that come to around 4k but everything else on my CR is paid. It even shows 4 past auto loans all paid on time and closed. My scores from what i can tell are around 588 on all three CRA's.  Should I even try talking to my CU or am i wasting my time?? I bring home 2400 a month, i live in a house thats owned by a family memeber and live rent free till they decide to sell.

[CashOnDelivery]

Have you tried to get pre-approvals from a Credit Union?

Those negatives are bringing your CS down, but that's for the APR purposes.

Inquiries are coded differently for auto loans, so I wouldn't worry too much on that

I was in a similar sitaution 3 years ago with the dealer. I tried trading my car in that had negative equity of $3K and the dealer said that was preventing me from getting approved. Long story short, I called his bluffed and agreed to put down $8K ($3K + $5K extra), then he said there's more to it and I wouldn't get approved. I wasn't playing their games and left. They even had the nerve to call me the next day to work on a new deal for a car that "suited" my needs, which was a cheaper, used car(5+ yrs), and no warranty.

[ds3]

I would think that at $2400 a month in income with your scores and recent bad stuff on your CRs that a lender would be tough to find for more than about a $10k loan. Stranger things have happened, but if you are looking in the price range of a car with a $600 payment, you're probably going to have a hard time. The good news is, all the inquiries will only count as 1, as banks understand you are shopping for a loan. Try your CU and a major dealer who has access to multiple financing options.

Good luck!

[qd]

I thought multiple inquiries for cars within the same time period only counted as one on your credit score and didn't impact you as much.  I don't remember what the time period was but I thought you had like a month to shop around and wouldn't take hit after hit after hit on your score for doing so.

[coterotie]

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@superdad wrote:

So I went to a local dealer yesterday looking at a new car. Told them I had 5k for a down payment. They ran my credit and said that the car was to expensive for me.  I dont see how thats possable. I have no debt, which i figured was a good thing. Theres nothing on my credit report that i make monthy payments on. So my dti is 0. They said if I came up with 15k they would hand me the keys.  I was like your kidding me!!! 15k? I even told them I could easly afford 600 month car payment. 

I though about trying another lot but dont want to burn another inquries plus they submitted it to 5 places because it showed up on my CR. Is there anything i can do?

  I did open a capital 1 secured card but have not recived it yet. I have about 8 fairly new collections that come to around 4k but everything else on my CR is paid. It even shows 4 past auto loans all paid on time and closed. My scores from what i can tell are around 588 on all three CRA's.  Should I even try talking to my CU or am i wasting my time?? I bring home 2400 a month, i live in a house thats owned by a family memeber and live rent free till they decide to sell.

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I'll take a stab at this one.  My guess is that with 4K in new (I'm assuming) unpaid collections, should the collectors decide to sue and garnish your wages you will be looking at a 30 to 40% reduction in income, combine that with $600 in payments and a depreciating asset and they would be in a world of hurt if there is a stumble by you.  So by requriing a larger down payment, they have instant equity should they have to pick up the vehicle.  I'm not sure if you have plans to address the collections, but using the downpayment you have to do pay for deletions, would likely mean that you could finance a vehicle more easily.  Our old timey guidelines were that you could afford a car that was about 70% of your annual income.  Or about $21K.