Ford credit and finance questions

[Kenlutzintero]

Hey all.
this will be the first care I’ve financed through ford credit and just had a couple questions . How long is my approval good for . My build week is sept 13 so I’m trying to decide when to apply ?
Also for self employed do I need to show proof of income . I have really good credit. Any insight would be appreciated just so I’m prepared .

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[goatman]

Hey all.
this will be the first care I’ve financed through ford credit and just had a couple questions . How long is my approval good for . My build week is sept 13 so I’m trying to decide when to apply ?
Also for self employed do I need to show proof of income . I have really good credit. Any insight would be appreciated just so I’m prepared .

Yes, you will need proof of income. Don't remember how long the approval will last, but approval happens pretty quickly. If you have your proof of income with you when you apply you could have an answer within an hour.

 

[Kenlutzintero]

Yes, you will need proof of income. Don't remember how long the approval will last, but approval happens pretty quickly. If you have your proof of income with you when you apply you could have an answer within an hour.

Will they take bank statements or 1099s?

 

[chtucker]

I have never needed anything other than my driver's license and my social security number..:

 

[goatman]

Will they take bank statements or 1099s?

Totally depends on your situation. And, previous car loans while self employed, and how much other open credit you have.

 

[PSUTE]

Thanks like I said I’m just trying to get prepared . I have a few credit cards all paid off credit above 750 so I shouldn’t have an issue qualifying . Just curious as to what I need for proof of income because obviously being self employed I show less on taxes than I actually make

I have never needed anything other than my driver's license and my social security number..:

I show up at the dealer with a smile. They go by your credit score...

 

[Lilj4425]

You can get better financing than with Ford. I would shop around.

 

[goatman]

Thanks like I said I’m just trying to get prepared . I have a few credit cards all paid off credit above 750 so I shouldn’t have an issue qualifying . Just curious as to what I need for proof of income because obviously being self employed I show less on taxes than I actually make

They know that, they will read between the lines. Again, depends on your other open credit, how much other monthly payments you have will determine how much proof of income they will want to see. You might get lucky and need none...it depends. BTW, I was a sales manager and GM at auto dealerships for 29 years, 15 yrs at Ford.

 

[StyleGuy]

I’ve been self-employed for over 25 years and I’ve never been asked to show proof of income for a car loan. You’ll have to fill out an application but they mainly go off your credit score.

 

[Chief1301]

@NayNay would be a good person to ask about financing. Hi NayNay, can you give Kenny some advice?

 

[NayNay]

Hey all.
this will be the first care I’ve financed through ford credit and just had a couple questions . How long is my approval good for . My build week is sept 13 so I’m trying to decide when to apply ?
Also for self employed do I need to show proof of income . I have really good credit. Any insight would be appreciated just so I’m prepared .

Good morning!! Great to see you're trying to be as prepared as possible for your 1st financed vehicle. I see some great advice. Since I can't see your actual credit report I will tell you what I tell others. If you are not part of a credit union GO JOIN ONE RIGHT NOW. This will save you a lot of money. This will also give you leverage when buying your Bronco, or any vehicle, home, personal loan, etc.. There are several factors that go into any bank giving you a loan and a rate. Since you've never financed a vehicle before it's vital you do everything you can to stack the deck in your favor. Look at it this way. You are a fish getting ready to jump into a pool of sharks. The less armed you are the easier it will be to get eaten alive. A dealership is a business and we are there to turn a profit. By the way I'm a finance director for a Ford dealership. So yes, I know what I'm talking about. Banks, all banks, look at specific factors when deciding if they'll give you a loan and at what rate. They use a formula. Let's take a closer look.....
LTV.... loan (the amount they give you for your purchase) to value (the invoice of vehicle) the more you put down on the vehicle the lower your LTV becomes and the better rates you'll get due to the risk to the bank being more in their favor. Banks want a low LTV to give you a better rate. The better rates will be achieved when it is under under 100% with prime rates less than 90% but each bank will differ.
DTI .... Debt (what are you paying out monthly) to income (what comes in before taxes) and this one can be complex. Banks want to see a good mix on your credit reports. They look at how long your history is. How have you paid debt. Is it on time. What your larger payments are. This is a way for them to map out what you can and can't do. They also look at how you've paid prior car loans. In your case you've had none.
Many individuals are going to get upset but again I say your credit score only matters a small bit unless you're over 820 and I've seen 840 credit scores get turned down while I've seen 590 scores approved.
The best way to be prepared is to join a credit union right now and once you have your vin number to apply for a loan with them. The approval can last anywhere from 30 to 60 plus days so you will want to ask. Then you want to tell the dealership you've been approved with your credit union at whatever rate you get and if they can't match or beat that you'll be happy to finance through your credit union. This is by far the best way to tip the balance in your favor. Every dealership wants you to finance with them. This is how we pay our bills. The banks pay us to get you signed up with them. For me, I don't want any customer coming in with cash (that's actual cash or a credit union check) because that only costs me my paycheck. If you try and swim in a shark tank with no defense you will be eaten alive. Feel free to openly ask, or message, me any questions to better clarify anything I've said. Oh you asked about proof of income. That will depend on the bank. Some will want it, others will not. Good luck!!

 

[NayNay]

@NayNay would be a good person to ask about financing. Hi NayNay, can you give Kenny some advice?

Thanks for the tag. I did the best I could to help.

 

[Chief1301]

Thanks for the tag. I did the best I could to help.

Thank you @NayNay , your the best! Have a great day

 

[2021badlands bronco bob]

Thanks like I said I’m just trying to get prepared . I have a few credit cards all paid off credit above 750 so I shouldn’t have an issue qualifying . Just curious as to what I need for proof of income because obviously being self employed I show less on taxes than I actually make

Not a good idea to actually post this.

 

[2021badlands bronco bob]

Thanks for the tag. I did the best I could to help.

You were very open and honest. Very nice to see this it means more can you could imagine .

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