(relisted to increase interest rate, and add income information)

The Problem:  Three years ago we bought an older used Honda Civic in the hopes that it would last us five years.  Fast forward to the present:  we’ve already put a couple of thousands in repairs into the car, and now it’s leaking oil and brake fluid like a sieve.  Time for a new car!  As a matter of principle we prefer to pay cash for cars, but we just bought a house, so our savings are low.  We want to hang onto part of what’s left in case of an emergency, so in order for us to buy a car, we’ll have to supplement our savings with a loan.

The Plan:  Get financing in advance, then with cash in hand, shop the local dealerships and private party sellers for a reliable model used car (but not as used this time).

Our Financial Situation:  I work three jobs.  First and foremost, I’m a research assistant at the local university (neutron physics is my field).  I’ve had that job for almost five years now.  Secondly, I work nights waiting tables at a local brewery/restaurant.  Thirdly, I’m a self-employed physics tutor when school is in session.  My wife is primarily a stay-at-home mom to our two boys, but she also provides full-time childcare for our friends’ daughter.

My wife is a whiz with budgeting, so she handles the finances and I watch over her shoulder. J  We have most of our bills set to auto-pay, so they’re never late.  We track everything online (Yodlee rocks!)  As you can see, I have great credit, and so does my wife.

The public record on my credit is a tax lien from the state of Indiana for $246, from 2001.  It was paid the following year, but it was actually an error and I’m working to rectify it (and get my money back—I should have gotten a refund that year!). 

The Inevitable Questions:  Why Prosper?  Mainly because we want to provide friends and family with an opportunity to participate in our loan, but we’re also happy to put our money into the pockets of other individuals rather than into the pockets of some big corporation.  Why is your DTI so high?  I do report my tip income and tutoring income for tax purposes, but both are a pain in the neck to verify, especially as I just started the job at the brewery in May.  Therefore, I only included the income from my primary job, which is easy to verify.

Any other questions?  Please feel free to contact me, and I’ll be happy to answer any questions that you have.