What Does a Cosigner Need for Toyota Financing?

While Toyota financing can certainly be convenient, it isn’t one-size-fits-all. However, a cosigner can help improve your terms or chances of approval. Casey Toyota is outlining what a cosigner needs to apply for Toyota financing.

A Great Relationship with You

Asking someone to be your cosigner on an auto loan can be a big ask. They’re essentially signing up to be your backup on your loan. If you can no longer make your loan payments, they must make them moving forward until your loan is paid off.

Good Credit Standing

The primary purpose of a cosigner is to help improve your chances of being approved for a loan. Their good credit standing can make you less of a risk to lenders. Plus, their high credit score can even help to improve your rates.

Proof of Their Buying Criteria

Every buyer has to present their buying criteria when applying for a loan, and a cosigner will have to do the same. We’ll ask for both parties’ current housing info, mortgage/rent payment, income, and employment info. You’ll also need to be able to verify it all with official documentation.

A Low Debt-to-Income Ratio

Even if your cosigner has a steady job, if they already have a lot of existing debt, that can be a concern. If their income is already tied up with other loans or credit cards, they may be unable to make your loan payments. Ideally, their debt-to-income ratio should be under 36 percent.

Apply for Toyota Financing in Williamsburg, VA

We offer a fast, easy, and secure online application, so you can conveniently apply for Toyota financing from the comfort of your home. If you prefer, you can stop by Casey Toyota to sit down with our team. Stop in to get started today!

#BBD0E0
»