New to the Auto Forum, thanks for taking the time to read my thread.


Last may I got a car loan for a 02' Saturn w/ 39k miles. I got it for 8.7k @ 24.9% interest for 60 months. Yea I know terrible.


My ficos are in the mid 600's across the board. I have a fulltime job (3yrs) that pulls in roughly $1,500 gross a month. I' am a fulltime student also.

Rent is $419 a month.

My current car note is $252 a month.

So, I figured it's coming up on the 1 yr mark, and it's either time to re-finance or get another car and loan. I go to my credit union the other day to apply for a car loan. I was approved for 60mth @ 7.5%, but that was shot down by the loan officer because she said my debt-to-income is higher than 50% including my DEFERRED student loans. Is it even legal to calculate deferred student loans into debt-to-income? So the loan officer tells me I will need a co-signer no matter what.

I don't have a co-signer that's why I' am in the current loan now.

My car was appraised at $10,000 (by the bank) and I have 7.5k left to pay off. It has 52k miles right now.

I currently have around $2,000 for a down payment or to put towards a used. I for the most part don't want to use it for neither.

What should I do now. I'm sick and tired of giving all my money to the interest monster. HELP!!

On behalf of CreditBoards Admin, MarvBear would like to extend a sincere and warm welcome to the Automotive Forum.

We have an Automotive FAQ (Frequently Asked Questions) section that should prove to be very helpful in your automotive knowledge quest.

In the Reading and Resource Section of this forum, which is a read only forum, you can look up information regarding Sales Tax by State, Lemon Laws by State, along with a number of industry specific topics very relevant from the dealership's perspective.

In the main section of this forum, there are two pinned topics both of which are read only topics. The first concerns Bank and Credit Union rates and tiers. You might find this useful in predicting an interest rate on your next vehicle purchase. The second is a general purpose credit application that you can use to get an idea if you might qualify for an automotive product loan based on an insider's perspective of the information you provide.

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A lender may use any method they prefer to calculate your DTI.

I suppose they are making the assumption that your student loans may not stay in deferment for the length of your proposed auto loan.

Can I get in any where under 10% apr??

It's a big difference whether you're looking to refi, or buy another car and keep the Saturn. You're going to have a hard time qualifying to have two car loans open with income that low.

It would depend on how the approving lender assesses the risk value.