Getting approved at a car dealership?

Question

Getting approved at a car dealership?

I am trying to get pre approved at a car dealership and it is called Elyria Ford in Elyria / Cleveland, Ohio

When trying to get pre approved it asks for gross salary

I do not have that good credit and I was wondering how much do they want you to make before you can get a car with them?

I am looking at a truck for $13,000

Also i am talking about in general not just elyria ford

Answer 1

Typically at a franchised dealership they do no make the credit call. The decision comes directly from the lender or bank. All lenders have their own criteria for loan approval. In general they do not want your obligations to exceed 50% of your gross income. If you have had credit problems in the past , they will look at the amount of time that has passed since those problems and any new credit you may have established since then. If it still looks a little rocky you may still be considered for a loan if you bring to the table a good down payment( cash or trade) or come with a good co-signer. Hope this all helps. Just remember the dealership is not actually the one that approves or disapproves your loan, it is the lender.

Answer 2

Your doing the right thing, but I would have got pre-approved at a bank first. 10% is a good figure for a down payment. Don't forget the truck may have a rebate on it if it's a new truck. For $13K I doubt it.

Here's my rule on new cars; If a vehicle cost 33% of your annual salary, that's good. That's all I ever spend on a car and it has saved me so much pain & grief by going with that rule. Now my credit rating is 770.

Answer 3

The dealer doesn't approve you for a loan, the lender does. There is a lender for pretty much every borrower no matter how bad their credit. Of course you'll pay much higher rates if your credit is poor.

You'll only know how much you will qualify by applying for the loan; there's no other way.

Answer 4

every lender has its own standards, it really isn't a dollar amount that matters, your credit score alone can get you a loan without proving your income, so if you don't have good credit it will depend on your other bills, your debt to income ratio becomes important if your credit isn't good, lenders want to see that you make enough to pay your new loan and your other bills, like rent, power bill, you will have to pay a higher interest rate, but if you pay on time, it won't take a long time to get your credit score up