Will I get approved?

[Mgilbert8605]

EQ Fico score: 651
Rent: $200 (live with parents)
Aggregate minimum cc payments: $75
Cc utilization: 11%
Monthly net income: $1,300
AAoA: 3 years
Oldest account: 9 years

I have 2 collections on my account that I submitted GW letters to this week. I haven't had a baddie put on my credit report in over 3 years. My 1st auto loan that I paid in full in 2010 has a lot of late payments up to 120 day lates. Since then, I've gotten another car that I currently have and have always paid on time. I got it in April 2012.

[Mgilbert8605]

Also, I'm looking to purchase a 2010 Mazda CX-9 or 2010 Nissan Murano. In my area, I'm finding ones in good condition for around 20k. Should I qualify for a loan of that amount with my income? I receive child support however it's paid to me in cash so I have no bank statements as proof. I doubt that'd be accepted.

[Remember0]

So first issue first. That 1300 in income will make it hard to get financed. Typically finance companies will look for 1.5k, ideally 2.0k.

By chance, do you deposit that child support cash into the bank account? And how much are we talking about?

[Mgilbert8605]

It's $250.00/month. I don't typically deposit the full amount into my account. I can't start if that's help. I don't plan on trying to buy a car until the end of April since I'd like some of my baddies to fall off of my report. By then, I will have 2 child support deposits into my checking account to show proof of. Should that be enough?

[Remember0]

Yes, it'll help. You said you CAN'T start depositing it. I think that's a typo, but keep in mind, it's completely fine if you deposit then bill pay or use your debit card to buy stuff after the deposit?

3 months would be ideal, but 2 will do. Any chance there can be an "early" May support deposit at the end of April esp. since it's cash?   Oh and try to get that deposit for this month (March) in today or tomorrow (the 31st)!

Also do you have some kind of papers (private settlement or court orders) that order him to give this to you or is it entirely voluntary? I find it so wierd that he'd pay you in cash. Call me skeptical or whatever, but I'd want proof of payment for any debt I owed haha.

Oh the application, I definitely recommend putting 1,550 as the income. A lot more banks will accept that figure vs. 1300.

Looking at DTI, yours is (200+75+360 (20k @ 72 months @ 5%))/1550=40%. A tad high, but fine!

As far as banks, I don't know if DCU takes a 1550 income. If they did, you'd be looking at ~4-5% for 65 months with them. Give me a day or two and I'll try to find out if they have a minimum income figure. If not DCU, Cap One (cap one probably pulls auto enhanced) would work or maybe you know of a local bank/CU you'd like to try? I think it's important for us to try and get you financed by yourself first. Only reason I say that is because you have auto loan lates. It'll really drag down your auto enhanced fico which is what the dealer pulls. Small banks/CUs often don't when you apply by yourself.

[Remember0]

By the way, 20k seems a little high. How many miles?

I know they list for 20k, but make sure you bargain down. The wholesale value of a CX9 w/ 52k miles is @ 14k. I think if the car is NOT CPO, 17k would be a good target price to start from for a CX9 (no more than 18k imo). For a CPO, I'd start 17.25, no more than 18.5 personally. 4k is to be blunt a little on the high side. So you could even trim those down. I might even start 16k CX9 non -CPO, 17k max and start 16.25 CPO, 17.75k max. I will note, I did value the base model, maybe you're buying a more featured trim level? Murano is pretty much the same btw.

Say you have other offers to help get them to budge. Also if you want say you have a friend who's a dealer in another state and that you know what Manheim MMR is (use that term MMR)...they are entitled to a profit, not 6k over wholesale (and you can say that too lol). By the way for most cars in this range, wholesale value is roughly +/- 500 of KBB Very Good Condition trade.

Try and negotiate with internet salesmen too. You'll get a better price vs. going there. And find similar ones at several dealerships and play the off of each other online over email. After you get price, only THEN do you discuss financing. Just say you'll use your own financing or simply cash if they ask about it before.

[Mgilbert8605]

Sorry I definetly meant to type "can". I'll go deposit tomorrow to show March's payment and the spread out 2 April deposits to say that 1 of them is May's early child support payment. Correct? I ssuurreee wish that I had a court document enforcing that amount, but I don't. Lol. It is voluntary at the moment. My current auto loan is financed with my local credit union at 9.99%. In Central Florida, when I search Autotrader and local stealerships, 20k on average is the rate that I find for both vehicles unfortunately. I can only find then cheaper if I buy further south like the Ft. Lauderdale area. I wish I had a friend with access to Manheim but I don't.

[Mgilbert8605]

Oh and the mileage I've found is between 40k-60k, not cpo and most of them are base trim level.

[Remember0]

1) Good idea on the support payments. You are correct witht he deposits. It's okay that it's voluntary. If ever asked for verification, say that you have bank statements of the cash deposits. Should be plenty. If they probe or they bring up the court order thing, then okay, you have to say voluntary but note you are legally entitled to the amount if you need to ever go to court.

2) It's okay that you don't have access to Manheim. Just use the fact that you KNOW what MMR is when negotiating. If you say your friend is a dealer in another state, they won't ask why you don't just buy through him. And like I said, I would make sure you get a base model w/ 50k miles down to at least 18k. 18k leaves them with plenty of profit. And obviously shop around and play them off of each other. Plus don't be afraid to walk out if they add fees that are unnecessary (vin etching, documentation) or change the price. I know in FL that doc fees are excessive. You should negotiate a price and doc fees. I wouldn't let the car+doc get above 18k because remember the doc fee is entirely profit for a dealer. NOT a mandated charge.

In general, I think you'll be okay. I looked through the approvals thread and found DCU approved someone with 23k/yr in income and NO credit. You're in a better spot imo. I think it maybe worth an application to them. I'll try and call them on Monday and see if I can't get a figure for minimum monthly income out of them.

[Mgilbert8605]

Great! Most of the dealerships I've seen have "dealership fees" of around $700.00. Would that be the doc fee that you're talking about?