What is a DTI Ratio and why does it matter for auto loans?

What’s a DTI ratio — and why does it matter for your auto loan?

DTI = Debt-to-Income ratio — the % of your monthly income that goes to debt payments.

For car loans, lenders usually want your car payment to be about 15% or less of your income.

Example: If you make $3,000/month, a $450 or less car payment looks good to lenders.

✅ Lower DTI = better chance to get approved and handle payments comfortably.