Local Banks and Car Loans After BK

[baybreeze]

Has anyone ever tried to get a new car loan from their own regular bank (instead of thru the dealer or elsewhere) after a bankruptcy discharge?

I was discharged in Aug '03, Chtr 7. However, b/c I just checked my credit reports last month for the first time ever, several of my OC's are reporting balances and past due amounts as charge offs with no note of them being included in my BK. Just a few weeks ago I finally applied for an Orchard Card and was approved.

However, I desperately need a new car and really want something new as I'm tired of breaking down, getting ripped off by mechanics, etc...I have seen people get majoryly ripped with interest rates, especially thru dealers. Since my BK was discharged, I took my next paycheck and opened a checking acct w/ direct deposit and a savings account at a local bank (Commerce Bank). Since then I've saved almost $13,000!!! I have been saving as much as possible as a down payment on a new car. I figured the more I put down, the better change i MIGHT have of getting a better interest rate.

I really wanted to start with my bank.....does anyone have any experienc similar to this? Anyone tried to get a loan from their own bank after BK and get it approved?? Also, do you think If i went there & sat down with someone and explained my situation and bankruptcy....might they be able to give me some idea if it's possible WITHOUT doing an inquiry on my credit reports?

[FilingOnMyOwn]

With $13,000, why wouldn't you just buy a car cash?

[SinkingFast]

The first thing you need to do is get your Credit Report cleaned up. No one will loan to you with all the lates and such being reported.

Any debt that was discharged in BK should show as such. It's the law the Creditor report correctly.

Write the Creditors and inform them that they are not reporting correctly to the CRA's.

Also, contact the CRA's and dispute the reports that are not accurate. Get your Credit Report cleaned ASAP.

Once you do that, you'll find it's much easier to get credit.

[baybreeze]

"With $13,000, why wouldn't you just buy a car cash?"

Well, I dont want to spend all the money I have. God knows after being broke and in so much debt for 3 years, I never want to go thru that again. I want to make sure I keep several thousand available between my checking and savings. Plus I really want a Honda or Toyota (since they are generally the most reliable) ...no more new models that have never been made before (been there, done that and sorry i ever did it), no more used cars...and Honda will cost at least $16,000. Plus Honda has a pretty good re-sale value.

I also don't want to get ripped on interest rates thru a dealer. That happened when I bought my first new car in '89. I didnt have much credit then, but what i did have was great. They still suckered me for 14.5% interest b/c I had no clue about all their tricks of the trade. Dummy I was, they kept telling me they needed to know how much i could afford each month...and <sticking my head in the sand now> I told them the MOST I could afford. Sure enough, that ended up being my monthly payment. Oops, im getting to far off the original topic...sorry ;'bout that.

[SinkingFast]

Just shop around. Check local banks and ask Dealers what they are offering. Then go for the best deal you can get.

We bought more than a few cars from the local Chrysler/Dodge dealer back home, where we used to live. That dealer always got us better terms and rates than the local banks offered.

Or the Dealer would toss in perks. Like when we bought one car, the Dealer threw in the deluxe 100,000 mile warranty coverage for free. We cashed in big time on that one. Transmission work 3 times. Water pump. Transfer case on the 4 wheel drive. Can't remember everything that went wrong with that truck. We traded immediately when it rolled over 100,000 miles.

Repeat customer incentives or whatever. Who cares. It's money we didn't have to spend out of pocket. And we got lower monthly payments.

So shop around. Sometimes dealers do offer better finance deals than banks. The Dealers get a kick back from the manufacturer to get you to borrow from Ford, Chrysler, or GM. So the Dealer has an incentive to make their financing attractive to potential buyers.

[baybreeze]

Update

Well, I visited my bank this afternoon just to speak with a rep, tell them my situation and ask questions regarding their auto loan policies, etc. I figured it couldnt hurt to ask.

After this visit, I am pretty optimistic. Right off the bat I told her that I had a discharged BK in Aug 03 and wondered if they consider anyone with past BK's at all...she said they DO!!!!! Of course I asked her what they primarily base it on, and it is mostly based on my credit scores. I even asked if she knew the lowest cut off score, but she couldnt remember off the top of her head exactly. She did say at least in the 600's. My scores this past Feb were 628, 632, and 679. I still have some disputing to do...because several of my creditors are only reporting as charge offs with account balances and past due amounts and makes no mention they were IIB (which they WERE).

I was planning to buy a new car this summer, which gives time to save more money for down payment and try to get my CRA's reports to report correctly.

I also asked about the APR's and if they charge a higher rate if you are on the lower end of the credit scores needed...she said No. They charge 6.5% APR OR 6.25% if you have the payments deducted from your account every month. Im thinking it would be awesome if I could get approved for this and what a great rate!!!!

So im keeping my fingers crossed on this. Im going to start monitoring my cr reports as now Im anxious to see if and how my numbers change after HOPEFULLY getting my disputes resolved. I also just got a unsecured credit card (only $300.00 limit though)

Wish me luck!!!!!!!!!!!

[SinkingFast]

Yeah! Bay!!

Hope everything goes well for you and you're driving your new car soon!!

[FilingOnMyOwn]

"With $13,000, why wouldn't you just buy a car cash?"

Well, I dont want to spend all the money I have. God knows after being broke and in so much debt for 3 years, I never want to go thru that again. I want to make sure I keep several thousand available between my checking and savings. Plus I really want a Honda or Toyota (since they are generally the most reliable) ...no more new models that have never been made before (been there, done that and sorry i ever did it), no more used cars...and Honda will cost at least $16,000. Plus Honda has a pretty good re-sale value.

I also don't want to get ripped on interest rates thru a dealer. That happened when I bought my first new car in '89. I didnt have much credit then, but what i did have was great. They still suckered me for 14.5% interest b/c I had no clue about all their tricks of the trade. Dummy I was, they kept telling me they needed to know how much i could afford each month...and <sticking my head in the sand now> I told them the MOST I could afford. Sure enough, that ended up being my monthly payment. Oops, im getting to far off the original topic...sorry ;'bout that.

Who says you have to spend 13k to find a decent car? If you buy new you lose several grand in depreciation the minute you drive it off the lot.

[SinkingFast]

Who says you have to spend 13k to find a decent car? If you buy new you lose several grand in depreciation the minute you drive it off the lot.

We haven't bought a new car for years, but I say the word "New" all the time referring to cars.

I don't really mean brand spanking NEW NEW. I just mean new to us.

[baybreeze]

I just want a new, reliable car especially since I can now afford payments. Every used car i've had ends up with soo many problems and I think I just keep getting ripped off by the places I've gone to have my cars fixed. Not to mention that when they say they fixed my car, i always get it back with a new problem that never seems to get fixed either. I got to the point where I asked them for ALL the old parts back b/c I thought they werent even doing the repairs. And just recently my car starting making loud banging noises and my hood was going up and down!!! It turned out that at my last tune up, a spark plug was not installed properly (was only screwed in on 3 threads - I have an overhead cam engine so the plugs and wires go in from the top of the engine). Well the whole metal unit that the plug is attached to exploded out of the engine into my hood and almost put a hole thru it.Ahh, well sorry I dont mean to turn this into a car repair gripe...I am just sick of being ripped off. So i would love to have at least several years of no major problems with a car. And seeing the resale values of Hondas in my area, it wont lose too much in depreciation in several years.

[13inOR]

I think theres nothing wrong with you having a payment right now- if you can have the self discipline to save up $13,000, sounds like you have learned a lot from any mistakes you might have made.
I hope you are able to get that great interest rate too. Keep us posted.

Also, there is something to be said for reliable transportation. Huge repairs
on a pile of cr@P was part of the reason we fell behind on our mortgage and had to file chapter 13. You can't go wrong with Toyota or Honda, thats for sure.

We just bought a 2005 Mitsubishi Endeavor, with only 16k miles, it stills looks and smells brand new but we saved thousands in depreciation by buying this slightly used model. We also have a 100,000 bumper to bumper warranty on it, so we should be good to go. Not a Honda or Toyota, but it got great reviews. And let me tell you, we are in HOG HEAVEN now that we have something we aren't afraid to even go out of town in. : )

[SinkingFast]

That's why I'm dying inside about letting go of my truck.

I found a brand new 04 sitting on the lot last summer. Left over. When the dealer was trying to unload 05's for the new 06's to come in. So even tho no one had owned it before us, it was a year, nearly 2 years old when we bought it.

It's got the 100,000 mile, deluxe, bumper to bumper warranty on it and it's only got 12,000 miles on it. I'm set for years to come as far as a vehicle goes, and decently low payments. $250/month

But we gotta pay our taxes. And the truck's the only thing left to sell. So it goes.

I completely understand how you feel. Lots of car repairs averages out to be a monthly payment anyway. Might as well have the comfort of reliability for the price.

[6ftladycop]

The Cadillac Man Did Me In

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I am so mad with myself, but being unfamiliar with the process and having filed a Chapter 7 two years ago, well....I guess I will have to live with what has happen to me. For the last two years, I have been able to pay my car note on time with no problems to GM. I was leasing a car and had A-1 credit in 05 when I got it, however my children being diagnosed with autism caused our family major financial problems and I had to file.

Since that time, I have been saving, watching my pennies, not being late on any bill and since I had nothing to pay except rent, car note, car insurance, light, gas and phone, I paid these on time and really thought I was doing good at rebuilding my credit and my credit score. Last year when I heard that the car companies were going under, I was under the impression that researching and checking to see if this problem would be of a benefit to me as an American person, imagine my surprise when my lease was up and I had to return my vehicle to Cadillac and was told that nobody was leasing a lot anymore because the car companies had lost loads of money on leases. Of course I believed this because this was GM and the Cadillac dealer. Why would they try and use me since I had never missed my car note.

But of course them about to go under(GM) and helping people do not go hand in hand. I should have known better. Well, let me tell you guys what happen to me and maybe I am in the toilet and maybe I can do something to help myself as this issue is only 2 weeks old. I returned my Cadillac leased vehicle to Cadillac in Chicago two weeks ago. While in the dealership, I came across the nicest or what appeared to be salesman and he insisted that they were working on trying to keep me from being without a car since leasing was not in the cards as they said. I did the paperwork to return the lease and waited until they "crunched some numbers" as the salesman said.

After being in the dealership all day(8)hrs and many phone calls and cups of coffee later, I was sold a 2006 Cadillac with 8772 miles on it. The car cost 25,000 dollars. At first since my car turned in was a 2005 with 38,000 miles on it, I thought I was getting a pretty fair deal. But the interest on the car was unbelievable. Not only that, but the salesman told me that GM would not finance me again for another lease, but if I was able to buy a used car, how come they could not finance me for that?

Also, my old interest rate was 10 percent and of course I did not expect that again, but I never thought I would end up with 20 percent interest rate. Is this what bankruptcy filers should expect from car dealerships. This Cadillac dealership has a good rating with BBB. Nothing but rave reviews. However I still feel I was ripped off unless you guys can convince me that there was no other way. Also, by the time the finance guy at Cadillac came back in to talk to me, he also told me that Capital One was the only people who would take the deal and since I know that I was in to them for 8,000 dollars, somehow I just know that they tacked that amount on to my car deal. I can not prove it, but I know it deep down in my gut. So two things will happen here since the final amount I pay back over 72 months in interest is more than the car is worth, I am either going to the local investigative television stations and have them check my story for the legalities involved, or I will listen to you guys if you say that in these 2 weeks and I.m not satisified with this deal, there is absoultely nothing I can do. Somebody please talk to me. I am stressed out. They would not even make the car certified used, just pre-owned used and the difference between those two is the warranty. That was the most inportant thing I needed.