Would I qualify for a car loan ? finance managers or sales people please?
Hi.Im 20. I earn roughly $500 take home weekly. I have two negative things on my credit history $1000 with cingular (which I am currently disputing, assholes) and like $60 from like back in the day with Columbia House lol. Anyway- Im an insurance agent, and Ive heard of people walking out of dealerships with brand new cars with far worst things in their credit history like car repo’s and crap. Do you think I would qualify for a 21k loan ? Oh yeah, and im going to try to have them work with 1k down plus my old car as a trade in which might be worth around 1k as well.
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2 Comments at "Would I qualify for a car loan ? finance managers or sales people please?"
You don’t make very much money, and you don’t seem to be able to put much down on this car. Are you really sure you should be buying a brand new car that costs 21K? I think you should look into used cars given your finances.
With the way oil prices are going, this is not the right time to be jumping into car ownership. Are you sure you even need a car? Look how expensive gasoline is these days. I think you should reconsider.
Auto finance is what I do for a living and the short answer is no.
Auto loans are based on the following factors;
1. LTV (loan to value)
2. Term
3. Age of vehicle
4. Miles on vehicle
5. Down payment
6. Time on job
7. Time at residence
8. Monthly income before taxes
9. Credit score/profile
10. Total debt to income ratio
Auto lenders look for the following;
1. 85% to 140% of wholesale
2. 36-72 months
3. 6-years old or newer
4. 50,000 miles or less
5. 10% or $1,000.00
6. 2-years
7. 2-years
8. $1,500.00 to $2,000.00 depending on lender
9. 540 minimum score, in the bureau 3-years minimum, 4-open trade lines paid as agreed for at least 12-months with 1 being a installment loan paying $150.00 a month minimum for 12-months and minimum of $2,500.00 in derogatory credit in the last 24-months.
10. No more then 45% total including new car payment
Where you are going to run into problems is number 9, at only 20-years old even if you have the score there is no way you will have the minimum time in the bureau or the profile required to buy this car.