second auto loan possible?

[v8eaterWRX]

I am looking to buy a 2002 F250 SuperDuty diesel from a private party here in AZ. I am hesitant to apply for credit with the market as it is, so what does myfico think?

Some background, I currently have an auto loan on my car. Between my fiance and I we are at about a 40% DTI including our mortgage, cc, cars, etc. and I would be putting down $2500 on a $10000 truck. Fico scores are in the 650s from high utilization (cc limits dropped dramatically after I closed on my house). I dont think they look at reserves for an auto loan, but we have quite a bit in savings. More than enough to buy the truck cash, just do not want to do that.

[cabarkeep]

I would say if it were from a dealer maybe ... but since you are looking at buying from a private party it is going to be tough ... you would need some stellar credit probably 800+ and squeaky clean credit to get a credit union give you the money for a private party purchase.

right now the banks are very tight with second autos... it would be hard enough for you to get the loan thru a bank as a second vehicle thru a dealer (i am assuming the truck has over 70-80k? since it is only 10k?)  The banks are not only going to look at it as a private party loan but also one on collateral that has high mileage and over 5 years old .... not things they like loaning money on at this time.

sounds like a good truck though if the engine is running good ... 7.3's are great engines pretty much bullet proof ..... yes i work for a Ford Dealer ..... good luck

Try a credit union ...short term loan 36 mos they might do it

[Anonymous]

Pay it with cash and then put the money from payments back into savings.  Also, cash will always make the deal smoother, quicker, and cheaper.  If you tell the guy you can do 9500 right now and can have him $ tommorrow, he will almost certainly drop 500-1000 in price as oppossed to messing with waiting from financing.

[Anonymous]

You might consider trying the following. 

1. Find a local bank, not a BofA or Chase, etc.

2. Check out the current trade in/loan value for the vehicle at www.kbb.com

3. Get an appointment with a loan officer. (Ask for someone with loan authority in an amount in excess of what you want to borrow) Take a copy of the vehicle value report, pictures etc.

4. Offer to put the 25% down and/or offer to buy a $2500.00 CD at the bank which can also be used as loan collateral.

5. Also, consider moving your accounts there and allow the bank to auto debit to make the payments.

6. Ask them to report to the credit bureaus - they generally will.

Don't ever dump all your cash into a vehicle, you may need it for an emergency.

[MattH]

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@Anonymous wrote:

You might consider trying the following. 

1. Find a local bank, not a BofA or Chase, etc.

2. Check out the current trade in/loan value for the vehicle at www.kbb.com

3. Get an appointment with a loan officer. (Ask for someone with loan authority in an amount in excess of what you want to borrow) Take a copy of the vehicle value report, pictures etc.

4. Offer to put the 25% down and/or offer to buy a $2500.00 CD at the bank which can also be used as loan collateral.

5. Also, consider moving your accounts there and allow the bank to auto debit to make the payments.

6. Ask them to report to the credit bureaus - they generally will.

Don't ever dump all your cash into a vehicle, you may need it for an emergency.

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All excellent suggestions!