first timer w/intriguing case...will i qualify?

[Anonymous]

First time applying for auto loan.

• TU 727 EQ 720
• Two credit cards, $3800 total available credit, $290 current combined balance, so I'm under the "10% rule" on that.
• AAoA 10 years
• Two paid collections ($25 each), almost 6 years old
• One 30-day late, almost 5 years old
• Income $72,000
• DTI: Less than 10%
• No previous car loan. Only installment loan I have are student loans, which I've never been late on. Own house outright (paid cash, so no history of mortgage).
• Want 2011 Honda Odyssey. Putting $8,000 down, which should be close to (if not over) 20%.

My only concerns are the collections, the one 30-day late, and the fact that I don't have much installment loan history other than student loans. Will I qualify for a loan? Any guesses on APR%?

[Anonymous]

With your score, good DTI, and cash down, you will not have a problem getting financed. The interest rate is a different story. The dealer will try and stick you with a high interest because you do not have any auto history. The collection accounts are not a big factor because of the age and amounts. 75% of the credit reports I look at on a daily basis have some type of collection on there. I would look for a local credit union and get preapproved with them. The interest rate will be way more reasonable. Good Luck!

[Tazman81]

+1:  I agree with cbyrd.  They may try to stick you with a higher interest rate only because you haven't had an autoloan before.  Who do you currently bank with?  Check with them for an auto loan even before you go to the dealership and see what they can do for you.

[Anonymous]

Shouldn't be a problem as long as your monthly bills (including the future auto loan payment) don't put you close to your monthly budget. You'll have no problem getting financed, especially with $8k down. 

Interest will depend on the term, and factory subsidies offered by Honda (if you chose to go w/ them for financing.