How do I replace my vehicle?

I’ve decided that I’m going to let my vehicle go in the BK and I need help getting another vehicle. How do I go about this? My plan is to find something sub $5000 that I can pay out, but I’m not sure how to get a loan, if I can get a loan, and when I can try. My wife doesn’t have a job right now and her score is about a 600 and she is not filing.

What do I do with my current vehicle in the mean time?

Please help me here. I’ll be looking at 90s to early 2000 full size Chevy trucks.

I know some of you are going to say save up the money between now and discharge, but I’m not sure I can save that much up.

Any ideas are welcome!  Thank you for all of the help!

Nothing?

Well, I'd guess you're upside down on the vehicle. So, that's a done deal, with you letting it go back. However, till they come and get it, you'll have to maintain insurance on the vehicle.

Now, second, if you want, go ahead and hit the dealerships, there's alot of used vehicles which are just sitting around waiting to be sold and what with the crisis, you're probably going to get a good deal IF YOU GO INFORMED with what you can pay, spend and maintain.

Be willing, almost eager, to WALK OUT on the dealership if they won't work with you. There was a post here a little while ago which the poster made a good deal, but only after they'd walked out of the dealership!

Interest rates will probably be high for brusied/damaged credit, but you'll never know till you go and look.

This is something you should have done prior to filing.
Very few lenders will finance you until the bk is discharged. Sending a billing statement is a violation of the automatic stay.
If at all possible, your wife needs to go back to work. The more you have for a downpayment, the easier it may be to obtain some sort of financing.
Have you explored 722 redemtion with your present vechicle?

Thanks for the input. I do realize I should have done this prior to filing, but I had my mind set that I was keeping my vehicle. Now its developed issues and I'm upside down so it just didn't work out right.

Thanks for the advice on buying...I sell for a living though. :) I know this game inside and out! :)

Our lawyer told us we can go and get a newer vehicle after we file. She said that we may have to search around a bit to find a dealer to work with. I have found one and what we want, now we are waiting to file. The dealer said we just need a letter from the trustee stating it is ok. Also, a friend of ours filed last year and he said you won't believe the offers you get. So I guess just try to find someone to work with you.

Once I filed I got a few offers in the mail from dealers that said they can even finance before discharge. www.722redemption.com and www.freshstartloans.com will both provide financing for redeeming your vehicle or replacing it and they can do it prior to discharge. You'll have to contact them to see if they can lend in your state.

If you have already filed and are not discharged you cannot take on new debt without the okay of the Trustee.

You'd probably be better off waiting and getting something after discharge.

Yeah, that was my question. I didn't know what, if anything, I could do prior to my 341. I can be patient and haven't missed a payment on the Tahoe yet so I'm in the clear there. Still have two months to save, which I should be able to come up with some money in that time frame.

Maybe mine is the minority opinion here, but I will give it anyways...

You are surrendering an upside down vehicle. Obviously, debt or income problems got you to a point of bankruptcy, so...

Now is the time to make a change in this! Avoid an upside down loan in the future with one sure fire way... pay cash for a vehicle. Save up, and do it. Yes, it might not be easy, but now is the time to do what is not easy to build security for tomorrow.

If you absolutely can NOT do this (think hard, because most people can find a way if they are willing to do what is difficult), then you need to have a big down payment. Figure on having 50% down. Now, you will not be as likely to have a negative equity situation.

Just a thought, but it is a good time to make good decisions, and not go down the same road again. Everyone started somewhere with their bankruptcy... we didn't all start out $150k in debt.

I agree with Never_Again. I just bought a 2002 Mercury Mountaineer for $6400 and gave back my 2006 DTS Cadillac in the BK. I was only able to come up with $3000 so I do have payments for 16 months, but they are very low payments and it will be paid off looonngg before the 16 months.

It feels good to know that I spent less on this vehicle (and it looks and runs great) than the amount that I was upside down on the cadiallac! Look at Craigslist or autotrader. If you want something "better" later on...make it an interium vehicle that will allow you to save and pay cash for the next one.

Maybe you could sell something you have that is exempt to pay cash for a used truck. That is what we are doing.

Good Luck

Thanks for the input! I DEFINITELY do not want to spend more than $10K on whatever it is I get. I know I can pay that back withing 1.5 years or less.

I am planning on selling my golf cart after the 341 and using that cash to go towards whatever I get. I'm scouring the earth looking for something cheap to buy. I need a truck and I'm too tall for a little one, I've tried that before. LOL

Thanks again!

I replaced my SUV today with an $8500 05 Dodge Ram! I feel much better. :)

Congratulations on your new Dodge Ram! :)