What is the largest increase in monthly payment or total balance that you have been approved for from one loan or lease to the next? How did you do it? What were your scores?
The general rule of thumb based on my experiance with lender's is 25% increase as long as DTI/PTI are fine. So if you are currently paying $500/mo they would be willing to extend credit up to a $625/mo payment so long as your DTI and PTI are within limits.
However, this isn't the case for all lender's, and I have seen some crazy thing's happen so I believe ultimately it comes down to your credit history/income/dti/pti. I have seen people with only previous auto loan's around 10k get approved on 40-50k vehicles.
What you can get approved for will depend much more on score, income, and DTI. Sufficent income, and you can buy a Maserati even if you're trading in a Daihatsu. Same income, same scores, with a pile of debt, you might not get a loan for the Daihatsu.
I desperately wanted a 50k loan out of college for a car (thank god I got denied).
Got a loan for $35050 ($50 paperwork fee), then went to $60k, then 74k, largest loan I’ve taken for a car now is a $1400/mo lease on a 98k car
Why were you denied? How is a $1400/mo lease on a 98k vehicle greater than a $60k or $74k loan? That does not compute unless this car has the worst residual ever.
@$60k car loan @3.99% over 72 months is $938,
@74k @3.99% over 72 months is $1157.
Computes to me since I pay the note..
53% residual, 36/15.. 00095MF, 9.5% tax rate, I buy a new car yearly.
I was denied due to no previous installment loans, I was told that they like to see other similar installment loans.
You’re still on the hook with the 98k car, technically... that’s the way they look
That's about a $50-55k lease balance. Your monthly is higher on the lease. I guess that's what you were referring to?
Also to consider.. there are different types of financing. Conventional finanancing is what most people talk about, but you may be able to actually afford a lot more car with residual based financing. It used to be less desirable, but now you can get it with a buyback gurantee (from some credit unions or fiwize.com does them online). Since the financing is calculated differently, the monthly payments are lower. Worth checking out. Good Luck!