@MT64 wrote:This will be my first time getting a new car financed directly through a dealer,. previously had just a single loan by using Capital One Auto Finance with not so great APR with a low 600s score (73 mo, paid off November of 2020, perfect payment history) so it's been a few years and the time has come for a replacement. I opened a small personal loan just over a year ago with Avant for $4500 (2nd one in 5 years, other paid off in perfect standing), got a few new cards early last year to help build my credit more (Discover and CU), and picked up the Cred AI card which puts me at 4/24. Disco reporting 0, CU reporting 28% and the other cards zero across the board with no derogs.
The source of historical purchases won't have any bearing on your future applications. You have previous auto experience. That's all that matters. Plus, it's paid off which mean you have trade equity and reported loan history.
You are in a good (leveraging position) with your debt. I wouldn't see this as any type of roadblock for a new auto.
Will a 15% down payment be sufficient for my income amount / DTI level? Also with being at my new employer for less than 2 years but having a mortage for more than 5, unsure how it could affect things. I was considering $4500 down but want to increase my odds of being approved and would prefer lower monthly payments so bumping it to $6500.
Your down payment will only reflect a lower payment. I don't see anything that would prevent you from being approved without a down payment.
Looks like after the loan it will put me right around 29% DTI. I'm hoping to be financed directly through Hyundai as they seem to have the most favorable rates at 3.9% whereas my CU is closer to 5.89% (for some strange reason). Recently had 2 sub $500 medical charges drop off due to the new rulings which bumped my score by about 30 points but it appears those wouldn't have impacted the FICO Auto score much afterall? (from what I've read)
29% DTI is nothing for auto apllications. Hyundai normally allows for PTI (Payment to Income) above 15% alone.
You are a sure bet for 3.9% or whateve subvened rate offered.
COrrect, those Medical Collections although could report are ignored.
If there are possibly better options outside of Hyundai Finance, please advise.
Only way possible this rate/payment scenario gets beat is if you have to give up a cash rebate to get that rate.
Also, I see Hyundai has an 0% loan available for 48 months as well. How long is the 3.9% odffered to you?
I've enclosed a payment estimate below reflecting the 0%
Credit Score: 774 TU (will pull myFico closer to when the car is available 3-6 months out)
AAoA: 4 yrs 11 mo
# of positive trade lines: 8
# of negative trade lines: 0
Income: $55k
Lenght of Employment: 1 yr 3 mo
Previous Loan Experience: $10k loan through Capital One in 2015 - 73 Mo term, paid off good standing in 2020 - no lates
Debt-to-Income (DTI): 15%
Year of Car: New 2023 Hyundai Kona Electric
Miles: 8
Purchase/Refinance: Purchase $42,480 - Loan amount after down: $35980 (less TTL fees)
Requested loan term (XX Months): 60 or 72/73
Down payment amount: $6,500
Co-borrower/Co-Signer: None
Other: Home Mortgage opened in 2017, perfect history
@MT64 wrote:Thank you @fury1995 , appreciate you laying it out like that, just the eye opener on loan terms I needed for a better pathway.
Also, I see Hyundai has an 0% loan available for 48 months as well. How long is the 3.9% offered to you?
I've enclosed a payment estimate below reflecting the 0%
The 3.9 is for 60-month term, had not given the 48 month consideration. Thanks for the breakdown, the difference in monthy payment is minor and saves what appears to be almost $4,000 in interest charges! It goes up to 4.9% at 72-month, but 48 at 0% seems to be the best option.
No problem. Here is a breakdown with the interest savinsg based on all three terms.
