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lmnomad

Self-Employed "Nomad" buying a car...

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Hey! I was hoping to get some insight on my very specific/abnormal situation, before I walk into a dealership.

 

I have been self employed since early 2017, my income isn't high (>$20k average before taxes) but my cost of living is very low. My partner is a non-resident alien from Australia and plays baseball, so we bounce around all year, and the majority of the year we don't pay any kind of rent or utilities. My main bills are my phone and the gym and health insurance. (aka my income being low works for me)

 

I have "very good" credit, bouncing between 730 - 750.

 

We are looking to buy a used car from a dealership in the $9-$11k range, with very minimal down (less than $500)

 

My questions are: will they ask for proof of income or will my score be enough?

If they ask, should I include my partners income even though he has assumingely no credit, with that hurt or help me?

Should I go in expecting a rate of 6%?

Would it be better to go to a credit union for a loan rather than the dealership?

 

Thanks!

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1 hour ago, lmnomad said:

My questions are: will they ask for proof of income or will my score be enough?

If they ask, should I include my partners income even though he has assumingely no credit, with that hurt or help me?

Should I go in expecting a rate of 6%?

Would it be better to go to a credit union for a loan rather than the dealership?

 

Provided your stated income is ~at least $1800.00 monthly and you otherwise are approvable, then I would expect your income is sufficient and I would argue that you need no proof.

 

Do not include your partners" income.

 

I honestly never find myself in a position where I can accurately predict an APR.

 

A credit union in my opinion may have more stringent requirements, so use your best judgement.   Personally were I to go that route, I would pick a national type credit union since you stated you move around a lot.   I think just a local credit union would be more conservative with a thin file candidate as they probably want their collateral within their service area.

 

And

 

Welcome to CreditBoards.

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Who is your primary banking institution? 

 

How used is used?  Some banks and CU's are going to, as Marv could confirm, be pickier the older the vehicle gets...APR will also vary with age. 

 

I'd be inclined to agree that specific proof of income may not be required as long as the file supports consistent income.  Where I could see a possible hiccup is on the housing though...make sure that you have enough to support yourself if you were in a position to have to get your own housing.  However, one advantage to trying to buy in a good economy is that some of the questions that might otherwise have been asked DON'T get asked when the lending standards are in a relaxed mode...

 

 

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