Auto upgrade?

[tired_of_debt]

As I am having my usual run of exceptional luck (cough, gag, puke), I am now starting to have problems with my car. The car is exempt according to my chapter 7 bankruptcy (last date for objections is February 27, 2006) and only worth about 2500 according to the book value (AND in my name and my sister's name who was my cosigner). The car was paid off in April of 2005, original loan was for ~15,000.00 and with the lovely interest rate I got, I actually paid about 25,000 for a car that is now worth 2500. Go figure. So, I get a letter from my original lender saying I am eligible for a loan for an auto upgrade. Truth be told, this car is starting to scare the sh%$ out of me. Little things going wrong that could add up to a whopper of a repair bill with little to no guarantees on how long the car will last. I guess my question is 3-fold...it is my understanding that I need to wait for discharge before applying for a loan to get another car? (and my credit report is NOT showing what it should once all is said and done)...would Wells-Fargo KNOW that I have filed bankruptcy before sending out this letter or is it possible they are just going through the records of people who actually paid off their loans and suffered through insane interest rates? ...and if I actually CAN get another loan based on my pathetic FICO score (the only one I have showing 563)? I know you folks don't have a crystal ball or anything, but I just wondered if anyone else might have some insight. I have 2 small children and I need reliable transportation. Thus far, in the past 2 months, I have had 775 dollars in POWER BILLS (gas and electric) thanks to the rise in gas prices, surgery on my face for basal cell carcinoma, replacement of a hot water heater temperature relief valve and a washer that decided to break in the middle of a load of my kids' school clothes. I am at my rope's end. I would pray for a light at the end of the tunnel, but with my luck, it would be a train.

Thanks for listening...broke and depressed in Ogden, Illinois

[StaciMM]

Since you're still in ch. 7, contact 722 redemption about a replacement vehicle. Would be a lease turnin, under 3 years old & decent mileage. APR is high, but payment is reasonable in the $250-300 range, and if you can afford to pay extra then you can save on interest.

You should be able to work with them, as long as you're not yet discharged, have no prior negatives with US Bank, and have 1 year + on your job. (And if you went this route, you could sell your current car and put that money to paying down the loan balance.)

[Minnymouth]

Great suggestion StacciMM!!!!

You got the know!!!

[tired_of_debt]

Really?

There is honestly a possibility that I may be able to get something reasonable for my girls and I without having to "sell the farm." EVEN WITH such crappy credit? I am honestly a nervous wreck about this car and with my lack of luck record, I figure the day I am discharged, something terrible will happen and I would not want to be out on the road with them in the car and have something happen. Was told by a mechanic friend that it sounded like an electrical problem currently which would put me in an early financial grave.

I never knew such a thing existed as 722 and, if it works, I will be eternally in your debt. US Bank was not on my BK. I have been with my current employer 3 years come March 1 and once this nightmare is over, my only bills will be my regular living expenses (unfortunately in THIS house, the power bills are driving me up the wall). I hope to relocate to a cheaper residence in Indiana when the school year is out. Would be nice to know I can get there without breaking down on the road.

Thanks so much for the information. Will keep you posted. Hate to get my hopes up too high. Has not been a good few months for me (actuallyl started at the end of 2004).

Praying for relief.

[StaciMM]

Check them out-they're primarily known for doing redemption loans on upside down vehicles, but also do replacement loans. There is a limited selection of vehicles-as you're buying from them. It was a fairly painless process. We got a 2002 Taurus, was under 36,000 miles when we got it in October. Paying $295/mo for 51 months-though paying extra saves interest.

722redemption.com, I'm sure there is a toll free #, or you can request email contact-and just let them know you're interested in the replacement program. THey are in Oh, so I'm pretty sure they'll work with Il. (They delivered our car to GA. We did the paperwork by overnight mail, and then took their driver back to a Greyhound station.)

My concern was reliability also-we surrendered 2 vehicles (both had issues, and combined payments were $900 almost) and so this one has to be good! And, I see this as being something we'll drive for 7-10 years at least. The only issues we had, was having to replace the windshield wipers. (Shouldn't have had to do that but they overlooked it and its minor, so no biggie.) And there are a few pennies behind the vent on the front/passenger side, LOL. They rattle from time to time. THe car only came with 1 key, and no key fob. Went to Ford and got one for $40 or so (programmed, also). They also reprogramed one, for free, from my 00 Taurus that was totaled. An extra key would be more, but at least we have something of a backup if the keys get locked in the car.

[Graphic]

lol how sweet of them to provide him a greyhound bus for travel back!