With 9k down, he has to qualify. That is almost 33% equity.

 

OMG KEEP SPEAKING THE GOOD WORD!

 

Figure 33k OTD, minus your 9k, right at $400/month. 20% of your income. With those credit scores, possible parent cosigner, should be cruising by Saturday night!!

 

Oh wait I forgot to mention I'm going for the Aero with SSS for $35k OTD. If worst comes to worst I'll just do SSS and add the Aero on myself later.

 

With 700+ and 9k down, if you can't get approved for the 0%, then you need to walk. No cosigner needed.

Remember, one of the #1 money makers for a dealer is in the F&I office, jacking up the rates.

 

Hmm.. He's still hurting for getting financed. Here's an example:

DTI ratio is very poor.

If someone makes $3200/month (gross) and you compute the front index (i.e. just how much he should spend on housing/mortgage regardless whether he lives at his parent's house or not):

3200 x .28 = $896/month for mortgage/rent.

then look at the back index (i.e. how much he would spend for rent/mortgage PLUS some form of credit obligation like car loan, student loan, credit card payment, etc..):

3200 x .36 = $1152/month for mortgage/rent + car loan.

Subtract the two:

$1152 - $896 = $256/month. Is the max his car loan would have to be on top of all the other credit obligations he has in order to afford this car and still live comfortably. This is talking about gross income and not net (what he actually brings home, which would be worse). He is nowhere near affording this car even with $10k down.

This is one of the reasons for the economy being so terrible now and why banks are failing. Taking this loan is asking for trouble from a bank regardless of his credit history. There is no guarantee that within 5 years of the loan that it will NOT default as opposed to someone else that has a much higher DTI.

A "cautious" bank isn't going to loan you the money based on saying someone "lives with their parents" because that can change and doesn't compute into the DTI ratio.

-M

 

^^ Spot on, spot on.

 

damn doode that sucks... how old are you. I am 22, with 4 years of good credit, and a 3200 after taxes for my job. I hope i qualify.

 

Well, even though you may qualify DTI before taxes, looking at after-taxes of $3200/month is still pushing it (depending on where you live and other credit bills you have). After all, your car note is an after-tax deduction. ~$300 month available for revolving credit is still not affordable, in my book.

 

3200 a month is 38,400 a year.

Whether that is net or gross, it's still scary that you're signing up to buy a car that is worth around what you make in an entire year and the OP is going to buy a car that is worth quite a bit more than he makes in a year.

Do you think that's normal? Even if you think it is normal or acceptable, do you really think it's a good idea? If so, I'd love to hear the justification.

 

I actually put a lot of thought into it. The most I told myself I'ld pay was 600 a month, because I am young, no bills, only rent/cellphone/food/entertainment/small expenses. So in my books I can afford it for 60 months.

Also I plan on going to med school next year... so if i am already going to be 300k in debt by the time I get out... what's another 35k.

 

That's silly.

60 months is a long time dude. You don't know what's going to happen in those months that may require you to have that $600/month in your pockete. To add to your situation, you are going to school which really requires having access to cash. You'll not keep the car stock and you might end up in more trouble than it's worth.

Take some smart advice. The EvoX will still be here when you get out of collage or there will be something cooler out. It's not worth the debt.

 

Its actually quite common for many medical students to take out extra loans (30 to 70k) to buy a car while in school. In fact, my uncle did it, and my cousin did it just recently.

I already did get accepted to medical school, so I just got to wait till next year to start. Just taking this year off to work because I am burnt out from school from the previous four years.

 

Just because it's common doesn't mean it's smart.

If you pay for a $30k car and put it on your student loan, you will lose even MORE money than the amount you'd lose if you just got a 60 month loan on it. You are already going to be paying $45k for a $30k car. Add the student loan longevity into it and you are talking probably over $80k for a car that will have long been traded off by the time you are out of school and making your student loan payments. The only time it's wise to buy a car while in school is when you pay it in full immediately.. Don't kid yourself man!

-M

 

I didn't own an Evo when I was in school, but I had the equivalent that was available at the time and I can tell you that it was a huge distraction. I should have driven a $500 pos and concentrated more on the books than driving around and wrenching on the car.

35K is still 35K, even if it is on top of a monster loan. Don't fall into that fallacy.

In this day and age, 60 months is a lifetime, especially at your age. When I bought my car in '03 I never ever would have dreamed I'd be in the spot I am now, almost exactly 5 years later. I've changed jobs 6 times, moved 8 times, bought a house, and gotten 47 haircuts.

If you want the car, get it, but really look at it from all angles.