I also pay mortgage, around $2300/mo, around $860/mo for the car. Income is $95k/yr and about $8k/mo. I know that lenders tend to have a limit of some percentage of your income allowable to be used up in credit, but what percentage is that? How much more credit can I take for another car?
2006-12-09 16:48:15 · 12 answers · asked by Anonymous in Business & Finance ➔ Credit
Forget about leasing. Forget about lowering my monthly car payments. I don't need to do that, I would just like to know if it is possible to get another $30k~ car (purchase, not lease) and take a loan for it.
2006-12-09 17:53:31 · update #1
Funny how you guys keep on assuming little details about me and my financial situation. The $42k loan has a co-signer, my son, who pays for everything. I have a car that might die on me soon, so I'm going to get another $30k~ car, I'm asking this question because I want to know if I can get that $30k~ car for 3-4 months and handle this kind of debt before he refi's and takes the $42k loan under his name completely. And yes he is paying every penny of that loan.
Stop assuming sh*t and answer the damn question.
2006-12-10 04:40:31 · update #2
You're nuts man! You took on a huge debt to pay for a car you didn't need to impress people you don't know! How much ya got in the bank? How much in stocks? You're spending hand over fist and you're asking for trouble. You should read some good books on money management. If I were you I'd re-examine my spending habits. You don't need to keep up with the Jones's. I've met them and they're broke! You must have something on the ball to make that kind of income. Use your brain to figure out how to create some lasting wealth instead of worrying about how much more you can borrow for another flashy car. You can get a real nice used car for 10 grand or less. Smarten up bunny!
2006-12-09 23:06:24 · answer #1 · answered by Big R 6 · 0⤊ 0⤋
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2016-09-27 19:43:50 · answer #2 · answered by Anissa 3 · 0⤊ 0⤋
You can almost certainly get another car loan for 30k based on your income, and the fact that you will be required to have full insurance coverage, and the car loan will be secured by the car you are purchasing.
Unfortunately, you don't list your age or net worth or net income - not that I really care, but anyone who only earns $95k a year and wants to owe $72k in car loans is either very experienced and has money invested elsewhere, or they are very ignorant and need to learn the hard way.
I hope you are the experienced type.
2006-12-09 18:44:30 · answer #3 · answered by J. C. 6 · 0⤊ 0⤋
According to AutoScoop, you can only take AT MOST 1/2 of your annual income in auto loans.
That means, $47,500 of your income is available for car loans. You only have $5,500 left since you already have a $42,000 car loan.
But honestly, you are letting your six figure income fool you. You are pretty much maxed out and there is nothing worse than making six figures and robbing Peter to pay Paul.
We have factored into this payroll taxes eating away at your purchasing power!
2006-12-09 19:38:07 · answer #4 · answered by DaMan 5 · 0⤊ 0⤋
Credit lenders suggest no more than 30 percent of your income should go to housing (mortgage, rent, electric, gas etc). As far as the rest goes, I'm not sure. It seems that you have the income to pay for another vehicle, but that is not for us to decide here. You need to speak to a reputable lending agency. You can also ask your bank their qualifications, so that you could figure out on your own if you would have the income available according to them before having your credit pulled which could lower your score.
2006-12-09 16:55:17 · answer #5 · answered by mommy 3 · 0⤊ 0⤋
You're probably not getting that close to your threshold, if you get a lower car loan.
But, $860 per month for a car loan is a LOT.
You might want to consider a less expensive second car or think about leasing a car with a strong residual value (worth more at lease end...therefore lower monthly payments).
2006-12-09 17:24:18 · answer #6 · answered by markmywordz 5 · 0⤊ 0⤋
Here you can get the best rates on your area: http://www.LOANSVAULT.NET
RE:How much credit can I have? I have a $42k auto loan, income of $95k annual.?
2014-07-24 07:53:24 · answer #7 · answered by Anonymous · 1⤊ 0⤋
It is a judgment call, but there are guidelines.
You are at the maximum on the one car as to what makes sense. With your numbers, another car loan would be very unwise. Save up and pay cash for a good USED car.
I would suggest another approach.
Listen to the Dave Ramsey Show. Dave recommends reducing your debt which in your case would be your best move and soon will be your only option.
Read the book "The Total Money Makeover".
2006-12-09 17:45:22 · answer #8 · answered by Jeff H 5 · 0⤊ 0⤋
Cars are different from real estate but your debt to income ratio, in mortgages, generally runs from 42% up to 55%. There are several different programs that will not take the ratio into consideration. They will be either stated/verified, stated/stated, no ratio or no doc loans. You will pay higher rates in most cases unless your loan to value is low and credit score is high.
2006-12-09 16:58:01 · answer #9 · answered by homes_az 2 · 0⤊ 0⤋
Payments past 60% of your monthly take home pay is considered a risk.
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2006-12-09 17:02:21 · answer #10 · answered by MN-Mike 4 · 0⤊ 0⤋