Car Loan Approval Odds?

Question

Hello,
I m looking into purchasing a new car. Id like to know what my chances are of getting approved for a loan. I m in my mid 20s and this would be my first new car. Unfortunately, I don t have someone that can cosign for me.

My fico score is currently 720 but I m not sure what my auto fico score is. I ve established my credit through the use of credit cards and cellphone account. I opened my first credit card about 3 years ago and I ve always made my payments on time and I pay more than the minimum amount due.

I ve only been at my current job 8 months but I was at my previous job for over 4 years.

I ve been looking at cars that would cost around $23,000 including taxes and fees. I would be able to give a $5,000 dollar down payment.

If you have experience in car sales or loans I d like to know what my approval odds are. I would hate for the dealer to run my credit if I am not likely to get approved.

Thanks in advance!

Willard · Answer

1

Doug Freyburger · Answer

The auto FICO score is industry only so there isn't any reasonable way to get yours. It's not that different from the regular FICO. Late payments on car loans and car repos count a lot more in the custom version. The regular FICO score so close enough for us to work with.

Scores 700 and up will qualify you for the best loan package. You're good to go.

Scores 700 and up will qualify you for the best loan package.  You're good to go.

Literal · Answer

Good advice but here is a bit more;  do not tell them you will be getting bank financing.  Negotiate the price of the car first, dealer financing is usually through a captive. Loan Company such as a Ford is financed through Ford Motor Finance Co. or some such.  The dealer gets a referral fee and it makes up for some of  the loss e "takes" during negotiations. If your trade-in is nice try to sell it yourself as he will low-ball the trade and make up more of his "loss".  The above notwithstanding: car sales are about break even.  The service area is his profit center..

Anonymous · Answer

You don't mention your income and other debt.  Those are crucial factors in loan approval.  I'd encourage you to get a loan from your bank or credit union rather than use "dealer financing."

Valleycat1 · Answer

an 18K loan would mean your payments would be around 350 dollars a month, possibly more. your credit rating is only one part of the approval process - more importantly, how big a chunk of your take home or net pay would the payment be?  and will you have enough money left over for rent and other required expenses?  plus you have to afford car insurance.

daniela · Answer

Good advice but here is a bit more; do not tell them you will be getting bank financing. Negotiate the price of the car first, dealer financing is usually through a captive. Loan Company such as a Ford is financed through Ford Motor Finance Co. or some such. The dealer gets a referral fee and it makes up for some of the loss e "takes" during negotiations. If your trade-in is nice try to sell it yourself as he will low-ball the trade and make up more of his "loss". The above notwithstanding: car sales are about break even. The service area is his profit center..

Badge203 · Answer

There is no such thing as an auto FICO score

There are always a finance company that works with dealers to get financed.

Your approval will depend on amount down, amount of time you want to finance it, your income, your debt.

You would probably get approved, the kicker would be what your payment will be and what they require down

Madoff · Answer

Don't wastes your money on a new car. Buy one that is 3-5 years old and save thousands.

A Hunch · Answer

Your chances of getting approval are excellent.
Now, you have to worry about the big thing with auto loans = the interest rate.

Willie · Answer

Buy a $5,000 car cash.

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Car Loan Approval Odds?

14 Answers