Buying/Leasing a car after BK

Anyone have any experience with this? Is it hard to get approved? I've never leased or purchased a car - but I am really leaning towards leasing.
my BK will not even be discharged when I begin searching for a lease. Any tips? I called one place and they tried to talk me into buying instead. It seems like there are so many different prices out there, and it's almost like you have to go to EVERY DEALER that deals in the car you want to get the best deal.
ao any tips would be great! thanks

You typically need to have stellar credit to get approved for a Lease. But if you do get approved, right out of BK your money-factor will be insane! :eek: Most folks simply side with buying a used vehicle post BK.

Good Luck!

Yeah, it can be tough. The few people I have known who tried it, had to go to these seedy car dealers that would "lease" them a 6 year old used car at payments for which they could purchase the same car.

The odds of leasing a new car will probably be slim, and leasing used cars usually doesn't make sense.

Again, it all depends on what your credit looks like Post BK when you go the dealer. But as a general matter, for new cars, its harder to qualify for a lease than a purchase.

Actually, I worked for a car dealership right after high school, and often times they could approve people for a lease, when they couldn't approve them for a loan.... That was just my experience, take it for what you will!

How easilly you will get approved for a lease depends a lot upon who is doing the financing. Some auto companies are much more likely to approve a lease than others.

Some words of adice, however - Leasing could be a big problem. In a nutshell, when you lease you are simply paying off the difference between what the car is expected to be worth at the end of the lease versus what they are charging for it up front. The reason it is cheaper is that usually after a couple of years, regular loan payments will add up to more than the depreciation. t the end of the lease term, you are likely to have nothing left if you aren't saving a little money, so the next time you go to get a car (which you will be forced to do - you can't just hang on to it) you are going to need to come up with more cash. And it is very diffcult to get out of a lease before it is up compared to refinincing a high rate auto loan.

You might be better off looking for a used car instead. You can still go with a dealer - many of them have certified used which gives you a warranty and reliability.

I was mainly thinking of leasing because I would like to be able to get rid of the car after 36 months for a new one, and because I don't want to be stuck with repairs. I have always had used cars, and the repairs have been an endless financial drain for me. I figured that getting a new car on lease would be a good way to get around that.
So if leases are a bad deal, then why do people do it? There must be some benefit.
If it's harder to get approved for a lease than a loan then why would anyone lease? I just don't understand that at all..

Hey brokeazz,
I have leased all my cars! I have been leasing since I was 18 years old, and I love it! I like getting into a new car every 3 years and not worrying about repairs and such.I am currently in a lease that is up in January 2006. We filed our papers for Bk last Friday! So I am curious if leasing my next car in 2006 is going to be difficult. I have never been late on any of my leases. We lease through American Honda Finance and they have always been great to us, with no $$ down, short lease terms and a super monthly pmt. In my opinion leasing is great, well, at least it works for us !

I was mainly thinking of leasing because I would like to be able to get rid of the car after 36 months for a new one, and because I don't want to be stuck with repairs. I have always had used cars, and the repairs have been an endless financial drain for me. I figured that getting a new car on lease would be a good way to get around that.
So if leases are a bad deal, then why do people do it? There must be some benefit.
If it's harder to get approved for a lease than a loan then why would anyone lease? I just don't understand that at all..

research the pros & cons of leasing thoroughly! leasing isnt right for everyone.

Good Luck!

What Are My Chances Of Getting A Car Loan After A Chapter 7
How Long Should I Wait And Around How Much Wld I Get Approved For

I wonder the same thing myself. We, hopefully, are about to be discharged 7/1 and need to buy our youngest son a truck. I have heard you need to wait 6 months but we really cant so I guess we will take the hit and buy it after the discharge(again, hopefully).

My experience? No one is going to touch you, period.

I was treated like a dog when I went to see about getting a car loan. They'd pull my credit, send it to 50 different banks, and then never call me back to even tell me I'd been denied.

Only one gentleman was kind enough to tell me that there was no way they could help me, unless I had a huge down payment.

One dealership wanted me to pay $6000.00 and put $2500.00 down on a 1996 car that had 110,000 miles. I laughed in their faces.

I would wait about a year after attempting to rebuild before I would even try to get a car.

You can always go to one of those "buy here, pay here" lots.

tin is basically right.

If you can find anyone willing to finance you, it going to be on a very inexpensive car and you will have to put 40-50 percent down.

The majority of subprime lenders, like seeing a $5,000 down payment. In addition to this, they charge you a double digit interest rate for the first 1-2 years.

check my post http://www.bankruptcyforum.com/showthread.php?t=1604

There is hope and yes you will pay but when a dealer is treating you like crap that is the time to walk. BANKS MAKE GOOD MONEY LENDING TO SOMEONE AFTER BK.

I would suggest that you find a company that understands and wants to help you get into a newest car you can. The place i went was vey good and just wanted to get me into a car that worked. I even had a 3+ hour test drive with out anybody in the car with me. I just drove off the lot and came but almost 4 hours latter. Yes it was a used car but i need to look at the bright side.
Repoed or the one i gave back to the bank was 1998 with 102,000 miles and a payment of $350.00 trade value of about $3 to $4000 loan of about $12,000. Oh and a elec problem that i could not find. It would not start somedays.

New car is a 2001 with 13,000 miles and extended warnanty to 49K monthly payment of $305.00. Loan is $12,500. includeing warnenty and gap (did not want to end upside down again) trade value of $10 to $11,000.00.

So I gave back to the bank a problem waiting to happen and lowered my monthly by $45 and have a car with alomost 85,000 less miles and a warnenty till 49,000 :)

Oh and on Lease vs buy it depends on alot of things but if you are happy with always having a car payment, don't drive over the agreed miles and keep your car like new then a lease might be better. This is one value you can also lease more car then you could buy. I dream of the day of no car payments have been there once only gas, insurance and a few repairs. I also drive close to 15,000+ per year and am hard on cars. A lease would sink me because of the miles and extra charges. By the way 3 your old leased cars are great buys because most are dealer worked on and low miles.

Well, I can tell you one thing. Toyota won't even pull your credit report if you tell them you have filed BK. My boyfriend went to get a new truck and they got on the subject of how I just got my discharge. The salesman told my boyfriend that Toyota won't even think of touching you for a new car if you have a BK on your record. Used cars may be a different story.

I appreciate all the input. The fact is we are looking for a used truck. The insurance alone is off the chart for a teenage boy so we had already planned on buying an old vehicle. I have already researched some dealerships in town(Memphis) and there are several who are not "we tote the note" kind of places who will work with people who have filed BK. I have also checked with the Better Business Bureau in Memphis and the companies have good records with them so while we are reduced to only dealing with certain car lots, I know not all of them are sleazy. We would not even consider leasing a vehicle even if we could. We went down that road, only saved a few dollars and ended up getting nothing when the lease was up. The Credit Union said it is THE most expensive way to buy/drive a car.

trying using the likes of www.roadloans.com or www.driverloans.com for bad credit auto financing. Don't apply for to many of these services.......because they use a lot of the same network of subprime lenders and dealerships.

Thanks Todd.

Ford Motor Credit is BK friendly.......

Thanks I will try them too. Unfortunately, roadloans.com does not do business in Tennessee. Wouldn't you know it I live in one of the 2 states they dont do business in. I am trying driver loans.com. Do you think it makes any difference if you use another paid for car as collateral? My son found several trucks that are reasonable at a Chevrolet place? Husband is going by today to check them out.
Todd, given roadloans wont do business with us do you have another source for auto loans besides driver loans.com? I wont check with any others but I need at least 2.

Not to digress from your BK question, but I too, chose leasing because of horrendous car repair costs. I vowed I would never own a used car again. After working in outside sales (mailing and shipping systems), I saw that a machine is a machine is a machine. It can only depreciate, become obsolete by changing technology and have parts that will fail. Yikes!! Good luck!

www.driverslane.com
www.creditprovide.com
www.auto-loans-financing.com
www.barnoneonline.com
www.carcredit.com
www.badcreditalliance.com
www.premierautofinancing.com

Don't forget to work with your local dealerships directly........a lot of dealerships have decent finance networks for subprime borrowers.

Good Luck!

Thanks Todd.

My husband and I purchased a 2000 Chrysler Town and Country Limited All-wheel-drive Monday night. We paid 9151 for the van itself and then added on an extended warrenty for 5 year 100,000 mile. Our intrest rate sucks 17.99% Our payments are 328.74 for 4 years. We're planning on refi the car in a couple months to get a lower rate. We've been discharged since 6/14.

Hi everyone first post here. i want to give everyone who went bankrupt a little hope. I was discharged on 5-4-04. My credit score is now a 676. i went to Ford yesterday and got approved for a brand new 2005 Ford F150 through Ford Credit. My interest rate was 9.9%. One percent cheaper than the auto loan I got before my bankruptcy. Any other Comments or questions I will respond to

Why is everyone looking for new cars right out of bankruptcy? Did you not learn your lesson. Save your money for a few months. Go find you a decent, safe, gas saving, hoopty that runs great for a grand or two and keep saving your money for later when your credit gets built back up and you can actually AFFORD the payments of a new car. Thats the problem with this world today. Most people think that they have to have a new car, and if they dont people will make fun of them.:( Come on. Grow UP. Such a materialistic world we live in. Currently I drive a 1992 Pontiac Bonneville w/ 163k miles on it and it runs perfect. Sure its kinda ugly (not that ugly) and needs a paint job...but you know what...it has ran for over a year with no problems, it is safe, dependable, good on gas and I am able to put back 350-450 bones a month because i dont have that payment. Let me do that for a few years and rack up the dough then we will see...Maybe i will give you a ride on my new Harley at that time...Cars are for too and fro...Dont live in them...Go buy some toys to enjoy your life with...
So its time to get real and look at the big picture. Yea so some people have nice things that you dont. Do you think they go home and say damn those people are freaking poor...did you see the car they drive...and laugh...They dont care because they have their own problems to worry about. Living for right now is fun...but is it the best idea...I say live ok for now...and live ok for later. Dont overkill the saving and not spending...but dont piss away loot either. When it comes time to retire your gonna wish you saved that money and was able to buy your place on the beach and sip on margaritas the rest of your life. I can hear the ocean now............................................... .

You could say I've learned my lesson......

~soldout~

Why is everyone looking for new cars right out of bankruptcy? Did you not learn your lesson. Save your money for a few months. Go find you a decent, safe, gas saving, hoopty that runs great for a grand or two and keep saving your money for later when your credit gets built back up and you can actually AFFORD the payments of a new car. Thats the problem with this world today. Most people think that they have to have a new car, and if they dont people will make fun of them.:( Come on. Grow UP. Such a materialistic world we live in. Currently I drive a 1992 Pontiac Bonneville w/ 163k miles on it and it runs perfect. Sure its kinda ugly (not that ugly) and needs a paint job...but you know what...it has ran for over a year with no problems, it is safe, dependable, good on gas and I am able to put back 350-450 bones a month because i dont have that payment. Let me do that for a few years and rack up the dough then we will see...Maybe i will give you a ride on my new Harley at that time...Cars are for too and fro...Dont live in them...Go buy some toys to enjoy your life with...
So its time to get real and look at the big picture. Yea so some people have nice things that you dont. Do you think they go home and say damn those people are freaking poor...did you see the car they drive...and laugh...They dont care because they have their own problems to worry about. Living for right now is fun...but is it the best idea...I say live ok for now...and live ok for later. Dont overkill the saving and not spending...but dont piss away loot either. When it comes time to retire your gonna wish you saved that money and was able to buy your place on the beach and sip on margaritas the rest of your life. I can hear the ocean now............................................... .

You could say I've learned my lesson......

~soldout~


I agree. I had the chance to reaffirm my expensive truck and I've decided to get rid of it. Not because its unreliable or not because I dont like it, but I'm just sick of being stuck under a car payment. I bought a car on the side from a buddy that works fine for now until i can save up a few grand and get something else. I think part of it for me is that the thrill of buying something new is gone for me anymore, I actually feel better about buying this used car and driving it knowing I will be saving money. This whole thing has defintely been a learning experience for me. I feel like now I have a 2nd chance to do things right. Just my .02

Why is everyone looking for new cars right out of bankruptcy? Did you not learn your lesson. Save your money for a few months. Go find you a decent, safe, gas saving, hoopty that runs great for a grand or two and keep saving your money for later when your credit gets built back up and you can actually AFFORD the payments of a new car. Thats the problem with this world today. Most people think that they have to have a new car, and if they dont people will make fun of them.:( Come on. Grow UP. Such a materialistic world we live in. Currently I drive a 1992 Pontiac Bonneville w/ 163k miles on it and it runs perfect. Sure its kinda ugly (not that ugly) and needs a paint job...but you know what...it has ran for over a year with no problems, it is safe, dependable, good on gas and I am able to put back 350-450 bones a month because i dont have that payment. Let me do that for a few years and rack up the dough then we will see...Maybe i will give you a ride on my new Harley at that time...Cars are for too and fro...Dont live in them...Go buy some toys to enjoy your life with...
So its time to get real and look at the big picture. Yea so some people have nice things that you dont. Do you think they go home and say damn those people are freaking poor...did you see the car they drive...and laugh...They dont care because they have their own problems to worry about. Living for right now is fun...but is it the best idea...I say live ok for now...and live ok for later. Dont overkill the saving and not spending...but dont piss away loot either. When it comes time to retire your gonna wish you saved that money and was able to buy your place on the beach and sip on margaritas the rest of your life. I can hear the ocean now............................................... .

You could say I've learned my lesson......

~soldout~


Wow. That's really really harsh.

I would like to let you know that I don't have kids, a husband, or a mortgage. I have me, and I make damned good money now that I have landed my dream job. I wanted a new car, so I could quit putting $500.00 worth of repairs into my Volkswagen every two weeks.

I did learn my lesson: to not marry an ******* the next time around. You forget that not everyone here are "complete losers who didn't pay their bills." When someone takes your name, and soc number and uses it to wrack up credit cards just to screw you over, then you can tell me what I can and can't do with my money.

Wow. That's really really harsh.

I would like to let you know that I don't have kids, a husband, or a mortgage. I have me, and I make damned good money now that I have landed my dream job. I wanted a new car, so I could quit putting $500.00 worth of repairs into my Volkswagen every two weeks.

I did learn my lesson: to not marry an ******* the next time around. You forget that not everyone here are "complete losers who didn't pay their bills." When someone takes your name, and soc number and uses it to wrack up credit cards just to screw you over, then you can tell me what I can and can't do with my money.

I wasnt meaning to be harsh to the people here...Mainly people in general...I know everyone has a different story and I'm glad you can afford a nice vehicle to get you around and that you have landed your dream job...Most people dont. And Im also sorry that you got screwed by someone else and have to go through something you shouldnt have. But most of "US" are having to file because of either ruff times, failed business risks, and just plain ole financial stupidity and bad luck...And to worry about wether or not someone will finance a new car is just out of the question. So if someones intention is to file B/K just to get rid of some cc debt or what not so they can afford a new car payment right after the discharge is just obsered and immoral. The 75% or so (just a quess) that has to file not because of someone else...we will learn our lesson and start to enjoy the finer things in life besides a vehicle, and maybe one day like myself or theurge might get that hard earned vehicle or toy that we want.

~soldout~

BTW... Dont most cc companies now have that protection when someone has made a fraudulent purchase yadayadayada...I would think you would be able to get that money back or have the purchases taken care of. or did you just say well...i know he will pay it back and you didnt want to screw him. Ultamitely YOU are responsible for the safekeeping of YOUR S.S, C.C., and all the other information that belongs to YOU. Yea a husband on the same accout...yadayadayada...Maybe you could have closed the account, or during the divorce/seperation have that included in the papers....There are many steps you could have taken to prevent that problem. But..thats over with and I can imagine that you probably wont make that mistake again.

~soldout~

Regarding car loans & such...

For some, it is better to pay a reasonable amount for a new car (or a new-used car) than to constantly put repair $$ into a junker. For me, I also need to know that my vehicle is reliable. And, if the car is in good condition it is bound to better on gas mileage, which is a big issue these days...

Whether its a house, car, or something else, I think I good rule to live by is to find something you can easily afford rather something you can barely afford.

BTW... Dont most cc companies now have that protection when someone has made a fraudulent purchase yadayadayada...I would think you would be able to get that money back or have the purchases taken care of. or did you just say well...i know he will pay it back and you didnt want to screw him. Ultamitely YOU are responsible for the safekeeping of YOUR S.S, C.C., and all the other information that belongs to YOU. Yea a husband on the same accout...yadayadayada...Maybe you could have closed the account, or during the divorce/seperation have that included in the papers....There are many steps you could have taken to prevent that problem. But..thats over with and I can imagine that you probably wont make that mistake again.

~soldout~


Interestingly enough they were credit cards that we obtained WHILE we were married. He was the co-borrower on them, and I never had them canceled. (Not using my brain again... had much bigger things to worry about at that point.) I did everything I could to have the charges reversed, and they told me no, because I had given him authorization. I could have sued him, but that could have taken years, and even more money than the creditors were owed.

And you also don't expect people that you are married to to do this type of crap. I was dumb and young when I got married, and trust me, I definitely won't repeat the same misakes again. And if someone reads this, and it's happened to them, or may happen to them, I hope someone can learn from my mistake.

Regarding car loans & such...

For some, it is better to pay a reasonable amount for a new car (or a new-used car) than to constantly put repair $$ into a junker. For me, I also need to know that my vehicle is reliable. And, if the car is in good condition it is bound to better on gas mileage, which is a big issue these days...

Whether its a house, car, or something else, I think I good rule to live by is to find something you can easily afford rather something you can barely afford.


I completely agree Staci.
I was putting several hundred dollars into my Volkswagen before I got this new one, a MONTH. With that in mind, I can easily afford a car payment. (Again, it's the insurance that is raping me this time. What a joke that is.)

However, I can afford it, and that's that.

I agree as well...i guess i must be one of them lucky ones. I purchased my Bonneville (92) for $825 and all i have had to do was change the oil and fill er up. I still get 28mpg in town...I would imagine its probably rare to find such a good car so cheap...It may have helped also that the guy I bought it from did not have a clue about cars and failed to check his spark plugs. One of the wires was off and the other was screwed out 1/2 way. Talk about running rough at the test drive...Good think I peeked under the hood...All in all...i got a steal of a deal. Remind me not to buy a VW. What was you having to do to that car? There are dependable cars out there for less than 5,000... Just gotta look...
Anyways, I never meant to be rude, and I hope I didnt hurt anyones feelings/Piss anyone off. I myself was ignorant with a vehicle and that is partly the reason why I am in b/k now. So take it as you may...Just dont take it the wrong way...

~soldout~

My sister did well. She had a mini van w/ lots of issues, and didn't want to put the $$ into fixing it. Last year, she used her income tax refund to buy a used Taurus station wagon. (Mid to late 90's model I think.) Its in good, clean condition. She offered less than they were asking, I think she paid about $2000 for it. But, it will last a while & no car payment.

I get nervous at the idea of buying used-because I don't know alot about cars, and don't want repair issues. My brother, on the other hand, can take a $100 hunk-of-junk and fix it up and sell it for $700-1000.

My sister did well. She had a mini van w/ lots of issues, and didn't want to put the $$ into fixing it. Last year, she used her income tax refund to buy a used Taurus station wagon. (Mid to late 90's model I think.) Its in good, clean condition. She offered less than they were asking, I think she paid about $2000 for it. But, it will last a while & no car payment.

I get nervous at the idea of buying used-because I don't know alot about cars, and don't want repair issues. My brother, on the other hand, can take a $100 hunk-of-junk and fix it up and sell it for $700-1000.

Keep in mind that used doesnt neccessarily mean hunk of junk. Most folks out of BK wind up buying a car that's between two - three years old, with low mileage.

I have always had cars no older than 2 - 3 years - since I got my first brand new one in 1986 - and have always traded off by the time the warranties expired. Of course, always trading up at the same time. I had been driving a 96 Sebring convertible and then I lost my job of 10 years in 1999 - so didnt work steady for a few years - now 5 years later I am working steady but got my ID stolen - no one gave a damn to do anything about it so I filed bankruptcy 2 months ago. My 96 was about shot to hell - and looked it too - then I had a car accident - just myself, ran off road into a deep ditch avoiding a dog - should have hit the damn dog cause i ended up totalling my 96 - it was driveable but looked and drove worse than ever. I finally just bit the bullet - found a lender finally - at 19 percent interest and now am driving an 04 Sebring convertible with 17 K miles on it - warrranty - a nice car and I will have to wait about a year and then I can refinance with a lower rate.

So its possible to reastablish credit but damn hard to do it.

I have always had cars no older than 2 - 3 years - since I got my first brand new one in 1986 - and have always traded off by the time the warranties expired. Of course, always trading up at the same time. I had been driving a 96 Sebring convertible and then I lost my job of 10 years in 1999 - so didnt work steady for a few years - now 5 years later I am working steady but got my ID stolen - no one gave a damn to do anything about it so I filed bankruptcy 2 months ago. My 96 was about shot to hell - and looked it too - then I had a car accident - just myself, ran off road into a deep ditch avoiding a dog - should have hit the damn dog cause i ended up totalling my 96 - it was driveable but looked and drove worse than ever. I finally just bit the bullet - found a lender finally - at 19 percent interest and now am driving an 04 Sebring convertible with 17 K miles on it - warrranty - a nice car and I will have to wait about a year and then I can refinance with a lower rate.

So its possible to reastablish credit but damn hard to do it.


A lot of places will let you refinance after six months. You might want to look at that option as well! :)

BTW... Dont most cc companies now have that protection when someone has made a fraudulent purchase yadayadayada...I would think you would be able to get that money back or have the purchases taken care of. or did you just say well...i know he will pay it back and you didnt want to screw him. Ultamitely YOU are responsible for the safekeeping of YOUR S.S, C.C., and all the other information that belongs to YOU. Yea a husband on the same accout...yadayadayada...Maybe you could have closed the account, or during the divorce/seperation have that included in the papers....There are many steps you could have taken to prevent that problem. But..thats over with and I can imagine that you probably wont make that mistake again.

~soldout~

Wow, grow up. Odds are her ex-hubby was doing this on the sly, and she lives in a marital property state, so whatever debts he racked up are hers no matter what. And give me a break, your spouse is going to know your SS#...it's on your JOINT TAX RETURN and practically everything else.

Having it in the divorce papers is great, but if he doesn't pay it, it still shows up on HER credit. The best she could do is get a contempt of court against him for failing to pay it, but by then the damage is done and her credit is screwed...and the creditors don't care about a divorce agreement, she's still liable for the debt.

I'm sure your reason for filing BK is far, far better than hers, right? Whatever helps you sleep...

Well, I can tell you one thing. Toyota won't even pull your credit report if you tell them you have filed BK. My boyfriend went to get a new truck and they got on the subject of how I just got my discharge. The salesman told my boyfriend that Toyota won't even think of touching you for a new car if you have a BK on your record. Used cars may be a different story.

This is not true. I went with my best friend she was 3 months discharged, and she got a car. It was 21% interest, however she was approved, I sat there with her. It was a nicer car, lower milage, and it ran like a tank.

A dealership will have info on many lenders, and they'll know the requirements of each. It is to the dealership's advantage to be able to get financing worked out for any type of credit-and they'll send your app to whichever lenders they feel are good matches. So while Toyota may not finance BK customers, they will know of lenders who will.

That DOES NOT mean the dealership has your best interest in mind. When you go shopping for a car, DO NOT try to make a deal the same day. Don't make an emotional buy, make an informed buy. (Speaking from experience. The last time we stepped foot on a new car lot, we were shopping because we would need a 2nd vehicle within a couple of months and I expected to get a worker's comp settlement within a couple of months. We left the lot w/ a new truck and a new $505 payment and the settlement didn't happen til 14 months later. By then, a large part of it went to catching up on living beyond our means for a long time, and we couldn't afford to pay off that vehicle-which had been our intent. I have to confess-I felt proud of making an adult decision when we left that vehicle back at the same lot a week and a half ago!)

You haven't seen the cars my brother messes with! They are so bad that people should almost offer to pay my brother to take them off their hands, LOL. He was always getting in trouble with the county for his 'works in progress'. The county they lived in, or maybe it was the neighbors that complained, did not like him having 2-3 vehicles in mid-repair mode in his driveway. Plus, he often had 1-2 vehicles there that he had repo'd and were to be returned to the pawn shop or car lot that he did business with.

Keep in mind that used doesnt neccessarily mean hunk of junk. Most folks out of BK wind up buying a car that's between two - three years old, with low mileage.

Americredit is a company that dealerships use that will finance folks post BK. Ususally the interest rate is high, but they will only approve for cars that are newer with very low mileage.

I got approved through Americredit. The dealership said my scores were low (discharged 11/21) around 545. They approved me and my interest rate wasn't horrible (14.5%). Does Americredit report to all your CRAs? I am working hard at rebuilding credit. I was told after six months of on time car payments that my credit would go way up and I could possibly refinance.

Oh...and BTW, I got a new car because mine was not safe, and I have a two year old and a four year old. It was always breaking down, and here in IN, it is FREAKIN' COLD in the winter.

If you bought a new car, it is not likely that you'll be able to refinance it unless you put alot down... Since they depreciate so quickly, you owe alot more than it is worth and it would be nearly impossible for someone to give you a loan on a vehicle where you need to borrow more than it is worth.

I wasn't counting on refinancing. I am grateful that I got financed at all! I ended up getting an 03' Explorer. I got a decent deal on it. We will see how things go in 6 months or so.

I misunderstood-thought you meant that you financed a brand new vehicle.

Since it is a a few seasons old already & its an SUV, it shouldn't depreciate as quickly now. (And I agree that your rate is not so bad. The last thing we financed pre-BK, 2 1/2 years ago, was ~13%.)

I wasn't counting on refinancing. I am grateful that I got financed at all! I ended up getting an 03' Explorer. I got a decent deal on it. We will see how things go in 6 months or so.

have to agree with folks that after a bankruptcy unless your sitituation is just different you are better off buying a used car.

Having said that about 6 months before my bankruptcy my car was about shot and I still had great credit. Got a new honda at a good price with 2.9% financing. The monthly payment was importent in getting my bankruptcy discharged and now I have a car with a reasonalble payment and I can count on for a few years to have little or no cost associated with upkeep.

I checked recently and was told that if I could get the same car today my monthly payment would be about 235 more. Talk about a mess.

Also since I filed under the old laws i was able to re-affirm without signing anything and if i ever don`t want the vehicle i can call honda up to come get it and I don`t owe anything.

Don`t know how it works under the new laws any thoughts? I filed pro-se.
Glad I filed on the last day 10/14/06. Don`t know if I could do this now.



Down & Out

My discharge is coming up soon, and I plan to rebuild and buy/lease a new car by the end of this year.

My mother just leased yesterday a brand new Saturn Ion Quad. This deal has been in the works for about a week now, they had to find the right color/trim my mom wanted. Her BK was dcharged just over a year and a half ago, and she hasn't touched her credit. She continues to make her mortgage payment and that's it. They qualified her for the special lease rate, the lowest one possible. I was hesititant about getting my hopes up for her because I know how car dealers (usually) work...get you in, get you tired, they say "ok, well we weren't able to get you that rate, but can you A) Put more money down, or B) Pay an extra 100 bucks a month, Well...After she added some onstar features and some warranty plans, she's paying $222.70/month for 36 month lease with only 1,000 down!

GO TO SATURN! They have a great company wide practice of because straight forward, up front, no haggle, and bottom line pricing. I know this now because last week when they said my moms payment would be "AROUND" 215/month...I thought, yeah right, your credit hasn't moved a point since your discharge, and they're gonna give you the special lease offer?? Well they did, and I will problem go with them for my next car.

I don't know if this is true for all GM dealers...but at least Saturn will be upfront with you, and not beat around bushes.
And saturn does have nice cars now...I'm glad they moved away from the outdated L2/L3 models and got real cars.

adam

I was not approved for a car loan through roadloans.com I called them and asked them when is it best for someone with a bankruptcy to apply and the lady told me as soon as your discharged.

My husband got him a 2006 Dodge Ram 1 week after bankrutcy. He went online an searched for companies that pulls one credit report and send it out to several dealers and that is how he got approved and for35000. We where only at the dealership 1 hour. In and out. He picked a vehicle signed paperwork and it was done.

Which sites did your husband find that would tell him which credit reports companies pull?

Filed:2/8/06
341:3/7/06
Last day to object:5/8/06

FilingOnMyOwn
Registered User
B/F Guru


Join Date: Oct 2005
Posts: 1,017 Before You Go and Get Ripped Off on Your New Auto Loan...

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I've been reading all these posts about getting 'approved' for auto loans. Getting 'approved' can also apparently mean that you should prepare to bend over and get raped it seems. Before you sacrifice your new financial virginity after bk, let me show you how bad the damage can be:

"Approved" for 30k @ 16% interest for 60 months = You Pay $43,772.40

Thats $ 13,772.40. In interest charges alone. Money lost. Flush down toilet.

Or a milder less painful one I read. "Approved" for 28k @ 13% interest for 60 months = You Pay $38,798.40

Thats $ 10,798.40, once again, in interest alone.

Thats a down payment on a house. And a really big housewarming party.

THANKS HRx - THAT'S AN EYE-OPENER FOR SURE........

Hope they all look at those figures and weigh the pros and cons of it......

What "looks like a great deal" - can be a costly one for sure.....

Minny

THANKS HRx - THAT'S AN EYE-OPENER FOR SURE........

Hope they all look at those figures and weigh the pros and cons of it......

What "looks like a great deal" - can be a costly one for sure.....

Minny


Glad you found that bit of information helpful!! But i didnt type that, another member did...i just copied and pasted it in this forum. :D

Yeah, and why did my thread get deleted? I started it for a reason, with more info to follow. Thanks alot!! :(

I went back and re-posted it. Is that ok or should I expect it to get deleted again?