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Would like some opinions and input on potential future auto loan

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BallBounces
Valued Contributor

Would like some opinions and input on potential future auto loan

Still a few months away, but before long my spouse and I will need to apply for an auto loan.  Possibly New, more likely CPO, but also private party is not out of the question. For this scenario, assume we are going to a dealer fpor a new car and wanting the best [possible finance options associated with it.

 

I will likely pull my own scores before then, as I have been opperating under multiple card provided scores for the time being.  I can reasonably assume my own auto enhance score is low 600s.  Maybe mid 600s. I have three old paid and closed positive auto tradelines still on file but also several baddies.  (Toyota, and two reported credit union auto loans are the positive auto TLs).

 

It turns out, my spouse most certainly has higher scores than me.  Mid 600s to high 600s by then perhaps.  Less baddies, but no auto TLs.  Again, we will pull actuals before long.

 

The question:  Assume the spouse has a higher score.  But also assume they have 'very low' income.  Is it possible to apply for an auto loan only in the spouse name, despite a low income?  Will they allow you to report no other financial obligations along with that low income?  ie, forego listing mortgage or rent because I pay it not my spouse?

 

I apologize for th vague question.  Just thinking ahead and of potential scenarios atthis point.

050719:     
021924:     


FICO 08 scores listed and are stagnated until multiple derogatory items expire over the next two years.
Message 1 of 4
3 REPLIES 3
ezdriver
Senior Contributor

Re: Would like some opinions and input on potential future auto loan

I am a proponent for securing auto financing before walking onto a dealer's lot.

 

Regarding what is reported, if its on your spouse's credit report [eg: joint credit like a mortgage], you can't gain anything by telling the dealer that your spose does not pay the mortgage. What is more important than who pays the debt is who is liable for the debt.

 

Message 2 of 4
Anonymous
Not applicable

Re: Would like some opinions and input on potential future auto loan

My wife has no income (student) but higher scores than I do have income of 119k but lower scores.  We tried several ways of qualifying and I ended up getting the best deal with NFCU on my own. I guess my answer is who knows??  I do know that you should secure financing before you go on to the lot.  With financing in hand it is easier to negotiate a favorable deal, you can let them try and beat the terms you have in hand, which they will almost always try to do.  I think having financing secured is more important for folks in your situation (or mine) than for folks with really high scores and clean credit because the finance and insurance guys take advantage of subprime buyers because they can easily mark up the interest.

Message 3 of 4
BallBounces
Valued Contributor

Re: Would like some opinions and input on potential future auto loan

Thanks 'working'.  Yor scenario is similar to mine.

 

FWIW, I have purchased many cars, and I am more than familiar with the optimal processes.  Typically I have either paid cash or financed from a position of power, so your input will be helpful in crafting our strategy over the next few months.

 

 

 

050719:     
021924:     


FICO 08 scores listed and are stagnated until multiple derogatory items expire over the next two years.
Message 4 of 4
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