How do you figure the debt to income ratio (or I should say how do they)? Is it a monthly calculation or an annual one? I'd like to figure out based on my credit/income alone if I can qualify for a newer car without involving hubby's CR becaue I haven't gotten his cleaned up as much yet. Thanks!
D/I ratios are most often used for mortgages. They total up your monthly debt payments and divide it by your monthly salary. For car loans, your score is going to be much more important than D/I ratio. While I did have to disclose this on the application, the finance guy clearly didn't calculate it - my approval and rate was based solely on my score
First of all, you could try to include your husbands income in the other income section of the application. They usually ask for all income, some say total household income. Result, your not lieing. I was told when I bought my car back in August 2002, that usually they will not need to establish the credit worthiness of the other income person. Also, your debt to income ratio includes all your debt divided by your gross monthly income. This is usually done per a monthly basis. The debts used are things like your house payment, student loan payments (if in deferrment or will not have to pay back within 12 months student loans are usually not used in the debt ratio), credit card payments (monthly minimum payments are used), and any other debts with a monthly payment.
Really? I didn't know that the score had all to do with the auto we purchased last year. We got a 2001 saturn at .9% financing. My score aint that great so I'm wondering how did I qualify for such low financing?
Did you get financing from Saturn? If so, then you didn't really "qualify for .9%" so much as you received a cash rebate, except in another form. They did that not because your credit warranted .9%, for in fact .9% is almost by definition an unprofitable APR. (Saturn could make over 4% by buying US savings bonds, with no risk of default). They did .9% for you because Saturn needed or wanted to sell more cars than they could have otherwise.
I can answer that one since my hubby has a car lot. Since 9/11 the car buisness is at a 50 year all time low. Therefore they are desperate and I do mean desperate. They have been offering o% financing, bad credit/no credit financing so on so on. It's killing the little people like my hubby who sale used cars. Why buy used when you are practically guaranteed new. Can't say I blame anyone.
