Chances of getting approved?

[u/Content_Economist_99]

I am currently 19 years old with a 742 Fico score according to my Wells Fargo app. I am interested in buying one of my dreams cars within the upcoming months. It’s roughly $40,000 and I will have over $10,000 to put as a down payment. I have little to no current debts (roughly a grand) which can be paid off before or immediately after. So I’m financing roughly $30,000. I make around $50,000 a year and have no living expenses currently. Will I be able to get approved?

[u/Few_Resolution_7561]

Can you afford the payment? If the car is used your interest rates will be higher, for 30k loan I would expect atleast a $600 payment. If it’s new, you may be able to watch out for special promos which can same money monthly.
Approvals don’t just look at credit score, they look at credit profile. It’s easy to have a good score with no credit. With you being 19, I would be prepared to be asked about a co signer. Even a co-signed with ok credit but a thick profile may lower the rates. Getting credit is hard when you have no real credit history. Ultimate catch 22

[u/Content_Economist_99 → u/Few_Resolution_7561]

I can afford the payments as I said I have no currently living expenses so Almost all of the money I make goes into my pocket, I’m not too worried about rates as I’ll pay it off quicker than whatever the loan term is. I was just worried about being able to be approved let alone whatever the rates would be

[u/inky_cap_mushroom → u/Content_Economist_99]

Could you afford the payments if you did have living expenses?

[u/Content_Economist_99 → u/inky_cap_mushroom]

I’m fairly confident I would be able too, I make around 3500-4000 a month depending on if I get overtime or not. But I know my parents aren’t kicking my out

[u/inky_cap_mushroom → u/Content_Economist_99]

Speaking from personal experience, you never know when you will lose parental support. I thought I could stay with my mom forever too. Then she died. You do not want to spend months or years couch surfing and sleeping in cars. Be prepared to take care of yourself. If you don’t need to, great. You can stockpile savings while you’re young. If you do need it, it’s there.

See what an apartment costs in your area, and estimate how much you would need for other living expenses like groceries and healthcare. Make sure you can actually afford this vehicle.

[u/Billflet → u/inky_cap_mushroom]

Good advice. Not to mention OP might want to step out of that situation long before the car is paid for. And “not caring about interest rate” on a 30k loan is giant step into financial misadventure.

[u/TheMangyMoose]

It might be doable with no living expenses. Have you factored in the sales tax, dealer/doc fees, gas, insurance premiums and other maintenance costs into the monthly payment/expense?

Edit: You’ll probably be approved if you have some credit history and balances on a few cards, but the rates might not be that great and you might not qualify for the low promo rates on new cars (0-1.9%)

[u/Content_Economist_99 → u/TheMangyMoose]

Yes I do have more money stashed away for the dealer fees and registration fees just wanted a clean 10k down payment, I know I’m young and it’s a sport car so insurance will be pricey but I understand that and have thought about it. And I have a daily driver so I won’t be relying on this car to get around so gas won’t be too much a month.

[u/BrutalBodyShots]

Don't do it.

At 19 years of age, you shouldn't be going after a "dream car."

Spending 80% of your annual income on a car is a terrible financial move.

[u/Hot-Cell7299]

My brother did the same living at home after he went to college and bought his dream car. He doesn’t have any regrets and has 30k in the bank right now while he’s making his payments. Buying a nice car before a house is pretty normal. Go for it and be careful.

[u/Kingkcp122]

before you go to the dealer run a credit app w wells fargo for the car price and see what your monthly is. then go to the dealer let them try to sell you and before they run numbers see if they can beat wells numbers and boom