Vehicle’s condition, age of the car, your credit, and your income are the important factors.
- Loan to car’s value (LTV): a maximum of 115 percent.
- Age of vehicle: no more than 8 years old.
- Term of loans: 36-72 months, based on vehicle age.
- Vehicle Mileage: 100,000 or less.
- Down payment: at least 10 percent or $1,000.
- Time on job: two years on the same job, preferably, or within the same industry.
- Time at residence: also two years.
- Monthly income before taxes: usually $2,500 at minimum.
- Credit score/profile: 680 or higher.
Less than criteria above will make it more difficult.
Take the vehicle to a qualified mechanic prior to buying it.
Call lender for items they need for the loan process i.e. VIN, written agreement stating the sale price, if there is a current lien on the vehicle. Lender will contact the lien holder to clear it.
If denied by credit unions or larger lenders, many online specialty lenders have less strict lending guidelines. Credit scores can be below 559, a DTI > 40̥, etc. Many only finance dealerships however.
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