5 Comments

1. Jeff T says:
   August 21, 2010 at 3:14 am

   With a co-signer, your credit doesn’t matter, his does.

   Question: If you need $3,000, then what’s stopping you from saving (say) $300 a month, and buying the car next year?
2. SPIFIMAN1 says:
   August 21, 2010 at 4:00 am

   Auto finance is what I do for a living and this should shed some light on your question.

   Below is a list of factors that auto lenders look for.

   Factors.
   1. Loan to value (LTV).
   2. Age of vehicle.
   3. Term of loan.
   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 including new payment.

   What they look for;

   1. Between 85% and 115%.
   2. No older then 8-years.
   3. 36-72 months.
   4. No more then 100,000.
   5. 10% of the sales price or $1,000.00.
   6. 2-years.
   7. 2-years.
   8. $1,500.00 to $2,000.00 depending on lender.
   9. 540 or above with 4 paid as agreed lines of credit with 1 being a installment loan paid at least 12 times for at least $150.00 a month and in the credit bureaus for at least 3 years.
   10. Not to exceed 45%.

   Another thing that comes into play is called payment to income ratio so depending on the term of the loan and the interest rate you would have to budget for the payment. Most lenders do not exceed 16%.

   The problem your going to run into is no provable income and the amount your looking to borrow is well below the minimum amount to finance of all major lenders which is $7,500.00. So when you find a co-signer go to their own personal bank that will be your best bet.

   Good luck.
3. Recommended. Using a nickname helps to protect you says:
   August 21, 2010 at 4:50 am

   You might be. Depends on the bank. Do you have a local bank that you have a relationship with? I’d start there. Are you buying a car from a dealership? They normally have a financing manager that can find you financing (but see if you can find other offers first so that you can compare what they offer to what’s available). Also don’t take the car without them actually finding you the loan first. They sometimes think they can find you a loan, sell you the car, but then have to take it back when it wasn’t the case.
4. Pick me for best answer!! says:
   August 21, 2010 at 5:12 am

   You can prove that you’re self-employed by giving your clients receipts which you have them sign for and keep records of their payments which you can take to the bank.

   Otherwise, you will need to get someone to co-sign. Just make sure that person has great credit and you won’t have a problem.
5. N says:
   August 21, 2010 at 5:37 am

   With your credit you can get financed. Not with zero down and probably not with a good rate unless you can provide last years tax return or something to prove your income.

   With a cosigner who also has good credit and income sufficient to pay all their obligations and your car note too should you default, you should qualify.

   If you have an existing banking relationship where they can see regular deposits that coincide with your claimed income that might help.

   Bottom line: You can probably do it on your own but you will pay too much. Your credit is too good so get a cosigner. Most people who need cosigners have far worse credit than yours.

   Spifmans post is dead on !