yea and also i make bout 2.5 k monthly and i was still turned down. i know i can afford an 8 but the dealier wont sell me one so i was just wondering what you guys make monthly. and if you guys wondering iam new here.

 

As you just found out, its not what you make but how you have handled your credit in the past. Kind of a catch 22. Best thing in your postion is to find a co-signer.

Good luck.

 

You'll definitely need a co-signer but aside from that, you really need to start building a credit history. Your salary today is completely irrelevent to them because you might not be making it tomorrow. I also don't know how long you've been at your job but the one standard they can use, regardless of timeframe for employment is a credit history. If they're going to front the cost for a $30K car they want to know if you pay your bills? Do you pay them on time? Etc. Quickest and easiest thing you can do is to get a credit card, use it and pay it off in full monthly. If you ever want to buy a home you're going to need credit too. It's not going to be enough overnight but it's a start.

-Eric

 

If you finance an 8 for its full amount, your payments will be about $600 a month.
$2.5 k per month of income is not enough, even if you had some established credit.
Most creditors will want the car payment to be less than 20% of your income, so you will want to have a monthly income of $3k or so.
I know I wouldn't want to pay out 1/4 of my entire net income in just a car payment.
If $2.5k is your gross income, you are in even worse shape.

Around here (DC), $30k a year is considered working poor.

 

Monthly income DOES matter.
Along with your credit score they look at your debt to income ratio. If you make 2,500 a month and lets say pay 800 in rent and have 500 in other credit card bills you debt is now way over 50% of your income and no matter what your credit score is most lenders will turn you down.

 

Of course it matters, but alone (which is all he has) it's kind of irrelevant.

I also agree with the points on proportion of income to expenses...just didn't want to go there.

-Eric

 

Try to get preapproved before you go to the dealership:

http://www.capitaloneautofinance.com/

You'll probably get the same results because of no credit history, but it's worth a shot.

 

Try the bank that you use. They might be a little more understanding.

 

In the meantime save that monthly payment NOW and use it to reduce the amont borrowed when you can get the loan.

 

u sure rx-8 is in ur price range? i mean, you earn about 30k a year and the car is just a lil under 30k. Maybe wait a bit before buying? or maybe leasing the car would be a better choice?

 

One more note, one of the WORST things you can do now is go from lender to lender and try to get approved immediately after you have been denied credit. Printed on your credit report is a list of all the inquiries made on your credit record in the past 6 months (i think thats the right number). Once you have been denied credit, the chances of you getting approved decrease greatly each time you apply within a short amount of time. Best advice..

1. get a credit card, use, and payoff monthly
2. pay all your bills ontime (this will help you even if you have bad marks in your credit in the past)
3. besides the credit card, DO NOT apply for credit anywhere for 6 months (at least).
4. save money to put down on the car (creditors are more likely to approve you when you show significant commitment up front in the form of a large down payment).

You also might want to consider leasing to get the payment down. Just make sure leasing fits your driving habits/lifestyle.

Good luck man, I hope it works out, I've been there before...

 

I can't sit idley by and let this chunk of misinformation out there. It may have been the case sometime in the past, but nowadays this is how inquiries work:

If you are shopping around in the auto or mortgage industry, you have a 14 day window from the time the first lender pulls your credit to have as many SOB's run your credit that you can come accross, and it will only count as 1 inquiry. Also, you have a 30 day window in which any inquiries made will not count against your score. If a lender turns you down, this is NOT recorded on a credit report. The only thing that goes on the report is the inquiry. I am a mortgage lender so I know for a fact that this is true. If you dont believe me, visit fair issacs, the CREATOR of credit scores, website at www.myfico.com


Again, all car loan inquiries within a 14 day window count as 1, and that 1 inquiry wont affect you for 30 days.

Also, the list goes back 90 days not 6 months, however the score considers inquiries from the last 12 months.


Also in the original posters case, his best option would be to get a cosigner and build credit through the tradeline that will appear on his report due to the car. Make sure you miss no payments though.

 

Hey i was researching financing info i came across this post.

Anyways, let me see if i got this straight.

If i apply say, Capital One financing, and i get approved but i get a higher rate than expected, does the ammount requested matter into that decision? because i applied for the full ammount of the 8 ( 30,000 ), but i will get a check back from insurance for 10,000 which im going use as downpayment, but since it takes so long for me to get that check and i did a car to move, ill just send those 10000 as the first payment.

However, does waiting for the check and request a smaller ammount ( 20,000 ) matters in the final APR i can get?

also according to you, after they ran my application, i can apply to as many loans ( inquiries ) as i like in the next 2 weeks without it counting against me right?

 

Yes, you can shop around as much as you want in the 14 days following the time the bank pulled your credit, and it will only count as 1 inquiry.

I can say this, though. I would put the 10,000 down and reduce the loan amount in a second, because, obviously, it'll make your payments go way down if you are financing 20K vs 30K.

Look on www.myfico.com under credit inquiries to read first hand the info I provided here.

 

UZI's can be VERRRY persuasive.