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Getting approved with 40% down


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Hi all 

So this is really for my GF , but she is trying to buy a 16 Honda Pilot , for $25829 out the door , and has 10 K down payment as a gift from family. Her credit is shaky ( FAKO scores around 550's ) and had a bunch of chargeoff's in the past couple years ( maybe 3 or so ) and some student loans in Forebearance. 

 

we've worked a price with the dealer , they gave us what we thought were solid numbers on the finance payment , but as of last night they said the approval hasnt come through yet. 

 

any chances of this deal getting done , or is her score just too low ? i also agreed to co-sign for her , but not sure if thats helping or hurting this chances here. 

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34 minutes ago, Venge97RI said:

 i also agreed to co-sign for her , but not sure if thats helping or hurting this chances here. 

please don't co-sign. You are better off just buying it yourself and letting her drive it. 

 

does she have time to clean up her credit a bit? she might be amazed how much can get done in 60 days or so.

 

ETA: the 10K gift may be better spent on lowering utilization and try for PFDs

Edited by hegemony
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So is she trying to get a loan for $16K or is that $26K figure inclusive of the $10K down payment?  Or is the dealership trying to get a no-down approval on a loan? 

 

If the figure is inclusive of the down payment, then she needs to run like hell...

 

And +1000 to Hege's guidance not to co-sign.  This is true even with an actual spouse but is especially a truism when it comes to a non-spouse. 

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2 hours ago, Venge97RI said:

but as of last night they said the approval hasnt come through yet. 

Of course, it has,   What no one is accounting for is the fee the lender will charge to make the loan to a more risky customer.  If they have to pay a fee there may be no profit left in the deal to pay that fee.  So they just tell you the approval hasn't come through just yet.   They can't legally tell you what I just did.

 

With a 40% downpayment, there is no need of a co-applicant.

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  • 4 weeks later...
On 8/7/2019 at 12:59 PM, MarvBear said:

Of course, it has,   What no one is accounting for is the fee the lender will charge to make the loan to a more risky customer.  If they have to pay a fee there may be no profit left in the deal to pay that fee.  So they just tell you the approval hasn't come through just yet.   They can't legally tell you what I just did.

 

With a 40% downpayment, there is no need of a co-applicant.

What would the dealers cost be to fund such a loan?

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It depends on the credit risk assigned by the bank's approving analyst. I have seen fees in excess of the requested loan amount before. The just means I gave a car to s consumer AND paid the bank several thousand dollars to take to the loan. Typically fees though range from $800.00 to $7000.00 depending

on the loan structure.

Sent from my SM-N950U using Tapatalk

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Does she actually NEED a car?  If so she should take the $10k and buy a $9k car (and pay sales tax and first year's registration with the balance).

 

We currently have a 2010 Prius for sale in this price range.  We are the original owners, it's never been in an accident, and we have all service records.  The car has 75,000 miles on it, which means it easily has another 150,000 miles of trouble-free use left.

 

I'm not trying to sell you our car, I'm just pointing out that reliable vehicles in this price range are out there.

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