what about buying a car DURING BK?

brainless twit · 10-03-2006, 07:04 AM

Okay, here's our long, dramatic car story.

After researching online, we decided to surrender our car (we were upside down and it has serious mechanical problems) and get a replacement vehicle through 722 Redemption. We spoke to a guy from there, who gave us generic information about the replacement program, stating that we would get personalized information once we had a BK case number. He said that payments ranged from $70-$300 and were usually close to what borrowers were already paying ($140 for us).

We filed our petition last Friday, listing the car as being surrendered, and called to give our case number. We were transferred to a "national dealership" in Cincinnatti, where we were given a VERY limited selection of vehicles to choose from. The guy there told us that we were looking at $290 as the lowest possible payment because of the types of vehicles available. When I called yesterday to choose a car, we had two choices: a 2004 Dodge Stratus and a 2003 Impala. Since I am not a Chrysler fan (and the Stratus required buying a warranty since it's not rated well), we chose the Impala.

Guy calls me back, says we were approved for the car, but oops, the payment is now going to be $350 and we aren't approved for that much of a payment. So he doesn't really have anything for us, but will have more cars next week. During this time, I looked the dealership up on BBB and they had quite a few complaints. I told the guy that I was going to try to find a car somewhere else, and he was rude - I ended up hanging up on him.

I called my attorney, who said it is perfectly fine for us to try to get another car if we can find someone to give us a loan. The car we're surrendering is our only vehicle, so this is a "have to" situation. We have talked to a blue million car dealerships today, and we're hearing a lot of "You'll need to pay 10% or $1000 down," which of course is impossible since we're bankrupt! I did fill out Ford's online app, but I haven't heard anything.

So anyway, now that I've written a book, what kind of options do we have? Are we likely to find something, or are we wasting our time? We have made it clear that we are not discharged yet, and so far no one has thought it was a problem. I'm just worried that we're going to have to surrender our car before we find someone to give us a loan.

Any advice? Experience? 2x4s to the head for getting rid of our only vehicle? I'm freaking out here!

CATCHMEIFYOUCAN · 10-03-2006, 07:32 AM

Getting a car while in Bk may be rough, but their are dealers out there, you will end up with an extremely high interest rate! And of course theres the "down payment issue." Maybe you can find a really really really trusted friend or relative who is willing to co-sign?

Good Luck, Catchmeifyoucan

**BassBoy** · 10-03-2006, 07:46 AM

You're right Catchmeifyoucan. It can be difficult while in active BK and most finance companies want to see about $1000 down.

What I would suggest BT is wait until you're discharged, clean up your credit report, and then look for an auto. I know you may be worried about losing the car before you're discharged, but the lender will have to have the stay lifted, and then have the repossession arranged...it could take a few months....you may be discharged by then.

I would also suggest not going from dealership to dealership looking for a car, even if you are discharged. There are many other lenders you can apply to all on your own and have your own financing arranged. This is what I did (3 months after discahrge) and I kept myself form getting ripped off. Sometimes, dealerships will attempt to pull the wool over your eyes. That aside, having your own financing will allow you to focus on a certain price range in order to keep your payments affordable.

Oh BTW, 722 redemption is 24% interest. You can do a heck of a lot better on your own.

brainless twit · 10-03-2006, 07:09 PM

Thanks to both of you for the input!

I made a few calls today and found a dealership willing to work with us. We were approved for 11% interest (thrilling to me considering our credit scores and the BK) and found a car that we're pleased with AND can afford. I got $6000 knocked off the price and convinced them to replace the tires and include tax, title, and license in the loan.

Places like 722 would have people believe that there aren't other options, but being upfront worked wonders for us. Especially during this time of year, car dealers are trying to get rid of cars to make room for the newer models and they're more flexible. We pick up the car tomorrow morning!

CATCHMEIFYOUCAN · 10-04-2006, 01:27 AM

I would also suggest not going from dealership to dealership looking for a car, even if you are discharged.
I hear that! That effects your credit too, doesn't it, all those inquiries. I bought my car through one dealer and this dealer made way to many inquiries by applying to different lenders to see which one would give me a loan. The way I found out was through letters in the mail from all these different banks that the dealer applied too! Well, my credit is shot anyways, why should I care right now. I'll fix it later!

BTW, congradulations, I'm extremely happy and and excited for the both of you !

**BassBoy** · 10-04-2006, 04:19 AM

That's great BT!

11% is really good considering that you're BK is still active. Good luck with the purchase.

Quote:

Originally Posted by brainless twit

Thanks to both of you for the input!

I made a few calls today and found a dealership willing to work with us. We were approved for 11% interest (thrilling to me considering our credit scores and the BK) and found a car that we're pleased with AND can afford. I got $6000 knocked off the price and convinced them to replace the tires and include tax, title, and license in the loan.

Places like 722 would have people believe that there aren't other options, but being upfront worked wonders for us. Especially during this time of year, car dealers are trying to get rid of cars to make room for the newer models and they're more flexible. We pick up the car tomorrow morning!

**BassBoy** · 10-04-2006, 04:27 AM

Actually CATCHMEIFYOUCAN, if you went to one dealership and they submitted a loan application, that's considered one hit on your credit, even though 4 or 5 different lenders may have pulled your credit. When shopping for a new/used car (and needing a loan), you have a window of time to shop, so it doesn't effect your credit too much by going to a few different dealers.

Quote:

Originally Posted by CATCHMEIFYOUCAN

I hear that! That effects your credit too, doesn't it, all those inquiries. I bought my car through one dealer and this dealer made way to many inquiries by applying to different lenders to see which one would give me a loan. The way I found out was through letters in the mail from all these different banks that the dealer applied too! Well, my credit is shot anyways, why should I care right now. I'll fix it later!

BTW, congradulations, I'm extremely happy and and excited for the both of you !

JusticeForAll · 10-04-2006, 05:40 AM

That is great news BT, congratulations!!!!!!!!!!!!!!!

There is life after BK afterall!

Quote:

Originally Posted by brainless twit

Thanks to both of you for the input!

I made a few calls today and found a dealership willing to work with us. We were approved for 11% interest (thrilling to me considering our credit scores and the BK) and found a car that we're pleased with AND can afford. I got $6000 knocked off the price and convinced them to replace the tires and include tax, title, and license in the loan.

Places like 722 would have people believe that there aren't other options, but being upfront worked wonders for us. Especially during this time of year, car dealers are trying to get rid of cars to make room for the newer models and they're more flexible. We pick up the car tomorrow morning!

CATCHMEIFYOUCAN · 10-04-2006, 07:17 AM

Actually CATCHMEIFYOUCAN, if you went to one dealership and they submitted a loan application, that's considered one hit on your credit, even though 4 or 5 different lenders may have pulled your credit. When shopping for a new/used car (and needing a loan), you have a window of time to shop, so it doesn't effect your credit too much by going to a few different dealers.

Thats a relief to know I guess, but when I pulled my credit report a week after I filed I saw them all listed, but I guess they are inquiry's .. not too knowledgeable on credit report reading - thats for sure, thanks B-Boy !

Catchmeifyoucan

**BassBoy** · 10-04-2006, 07:45 AM

Quote:

Originally Posted by CATCHMEIFYOUCAN

Thats a relief to know I guess, but when I pulled my credit report a week after I filed I saw them all listed, but I guess they are inquiry's .. not too knowledgeable on credit report reading - thats for sure, thanks B-Boy !

Catchmeifyoucan

Yes, the inquiries will show up, but still, it's considered one hit. You just gotta be conscious of how many dealerships you go to and how many times you have your credit pulled. You know?

lostsoul23 · 10-04-2006, 07:33 PM

I lucked out, and found went through carloan.com, and managed to get a 2004 car, low miles, etc - with no money down. I'm still staggering over it, because I thought for sure I was going to be doomed for a few years to a car that ran on a whim & a prayer.

Walnut · 01-25-2007, 06:29 PM

Some great info in this thread. Not sure when we will be looking for another vehicle. We used to buy them every 2-3 years until credit problems began a few years ago and then boomed from my job loss in 2004. I have no idea what my credit score is (we are filing Ch7 BK on Monday). Is it worth bothering to check it the day we file or wait until discharge? I see many folks on here bought new cars some 2-3 months after discharge and got pretty steep interest rates. I think a lot of this is nice in some way because buying a new car so soon after BK probably eased some pain and removed some uncertainty in those people. The key is to not overextend yourself - I am facing BK because I can barely pay living expenses plus car payments and rent. Buying a new car would result in payments some $200 or more than what I was paying on the older ones. One thing I need to learn is how to appreciate what I have and not feel the "need" for a new car.

**HHM** · 01-25-2007, 08:37 PM

We would prefer that you not resurrect old threads, (this thread was started in Oct 06). If you have a current question, go ahead an start a new thread.

10-03-2006, 07:04 AM	#1
brainless twit Registered User B/F Newbie Join Date: Aug 2006 Location: Kentucky Posts: 102	what about buying a car DURING BK? Okay, here's our long, dramatic car story. After researching online, we decided to surrender our car (we were upside down and it has serious mechanical problems) and get a replacement vehicle through 722 Redemption. We spoke to a guy from there, who gave us generic information about the replacement program, stating that we would get personalized information once we had a BK case number. He said that payments ranged from $70-$300 and were usually close to what borrowers were already paying ($140 for us). We filed our petition last Friday, listing the car as being surrendered, and called to give our case number. We were transferred to a "national dealership" in Cincinnatti, where we were given a VERY limited selection of vehicles to choose from. The guy there told us that we were looking at $290 as the lowest possible payment because of the types of vehicles available. When I called yesterday to choose a car, we had two choices: a 2004 Dodge Stratus and a 2003 Impala. Since I am not a Chrysler fan (and the Stratus required buying a warranty since it's not rated well), we chose the Impala. Guy calls me back, says we were approved for the car, but oops, the payment is now going to be $350 and we aren't approved for that much of a payment. So he doesn't really have anything for us, but will have more cars next week. During this time, I looked the dealership up on BBB and they had quite a few complaints. I told the guy that I was going to try to find a car somewhere else, and he was rude - I ended up hanging up on him. I called my attorney, who said it is perfectly fine for us to try to get another car if we can find someone to give us a loan. The car we're surrendering is our only vehicle, so this is a "have to" situation. We have talked to a blue million car dealerships today, and we're hearing a lot of "You'll need to pay 10% or $1000 down," which of course is impossible since we're bankrupt! I did fill out Ford's online app, but I haven't heard anything. So anyway, now that I've written a book, what kind of options do we have? Are we likely to find something, or are we wasting our time? We have made it clear that we are not discharged yet, and so far no one has thought it was a problem. I'm just worried that we're going to have to surrender our car before we find someone to give us a loan. Any advice? Experience? 2x4s to the head for getting rid of our only vehicle? I'm freaking out here!
	Filed Chapter 7: 9/29/06 341 Meeting: 11/01/06 Last Day for Objections: 1/01/07 Discharged and closed: 1/03/07

10-03-2006, 07:32 AM	#2
CATCHMEIFYOUCAN Registered User B/F Guru Join Date: Sep 2006 Location: Falls Church, Virginia Posts: 1,619	It's Hard - I think Getting a car while in Bk may be rough, but their are dealers out there, you will end up with an extremely high interest rate! And of course theres the "down payment issue." Maybe you can find a really really really trusted friend or relative who is willing to co-sign? Good Luck, Catchmeifyoucan

10-03-2006, 07:46 AM	#3
BassBoy Moderator B/F Guru Join Date: Oct 2005 Location: Northeast, Ohio Posts: 2,070	You're right Catchmeifyoucan. It can be difficult while in active BK and most finance companies want to see about $1000 down. What I would suggest BT is wait until you're discharged, clean up your credit report, and then look for an auto. I know you may be worried about losing the car before you're discharged, but the lender will have to have the stay lifted, and then have the repossession arranged...it could take a few months....you may be discharged by then. I would also suggest not going from dealership to dealership looking for a car, even if you are discharged. There are many other lenders you can apply to all on your own and have your own financing arranged. This is what I did (3 months after discahrge) and I kept myself form getting ripped off. Sometimes, dealerships will attempt to pull the wool over your eyes. That aside, having your own financing will allow you to focus on a certain price range in order to keep your payments affordable. Oh BTW, 722 redemption is 24% interest. You can do a heck of a lot better on your own.
	Bankruptcy History: Chapter 7 filed - 10/12/2005 - Asset Discharged - 02/16/2006 Case Closed - 11/08/2007 A banker is a fellow who lends you his umbrella when the sun is shining and wants it back the minute it begins to rain ~ Mark Twain All suggestions are based on personal experience and research and SHOULD NOT be construed as legal advice as I am NOT an attorney. Always consult with competent counsel in your area with regards to your particular situation.

10-03-2006, 07:09 PM	#4
brainless twit Registered User B/F Newbie Join Date: Aug 2006 Location: Kentucky Posts: 102	Thanks to both of you for the input! I made a few calls today and found a dealership willing to work with us. We were approved for 11% interest (thrilling to me considering our credit scores and the BK) and found a car that we're pleased with AND can afford. I got $6000 knocked off the price and convinced them to replace the tires and include tax, title, and license in the loan. Places like 722 would have people believe that there aren't other options, but being upfront worked wonders for us. Especially during this time of year, car dealers are trying to get rid of cars to make room for the newer models and they're more flexible. We pick up the car tomorrow morning!
	Filed Chapter 7: 9/29/06 341 Meeting: 11/01/06 Last Day for Objections: 1/01/07 Discharged and closed: 1/03/07

10-04-2006, 01:27 AM	#5
CATCHMEIFYOUCAN Registered User B/F Guru Join Date: Sep 2006 Location: Falls Church, Virginia Posts: 1,619	Dealers I would also suggest not going from dealership to dealership looking for a car, even if you are discharged. I hear that! That effects your credit too, doesn't it, all those inquiries. I bought my car through one dealer and this dealer made way to many inquiries by applying to different lenders to see which one would give me a loan. The way I found out was through letters in the mail from all these different banks that the dealer applied too! Well, my credit is shot anyways, why should I care right now. I'll fix it later! BTW, congradulations, I'm extremely happy and and excited for the both of you !

10-04-2006, 07:17 AM	#9
CATCHMEIFYOUCAN Registered User B/F Guru Join Date: Sep 2006 Location: Falls Church, Virginia Posts: 1,619	Cool Actually CATCHMEIFYOUCAN, if you went to one dealership and they submitted a loan application, that's considered one hit on your credit, even though 4 or 5 different lenders may have pulled your credit. When shopping for a new/used car (and needing a loan), you have a window of time to shop, so it doesn't effect your credit too much by going to a few different dealers. Thats a relief to know I guess, but when I pulled my credit report a week after I filed I saw them all listed, but I guess they are inquiry's .. not too knowledgeable on credit report reading - thats for sure, thanks B-Boy ! Catchmeifyoucan

10-04-2006, 07:33 PM	#11
lostsoul23 Registered User B/F Newbie Join Date: Dec 2005 Location: SW Ohio Posts: 93	I lucked out, and found went through carloan.com, and managed to get a 2004 car, low miles, etc - with no money down. I'm still staggering over it, because I thought for sure I was going to be doomed for a few years to a car that ran on a whim & a prayer.
	I'm not a lawyer or legal expert, just offering advice on what I may have gone through and/or have knowledge of. Good luck! 341-done Last date for objections: 02/21/06 - done Discharged: 02/24/06 Case closed: 3/8/06

01-25-2007, 06:29 PM	#12
Walnut Registered User B/F Newbie Join Date: Nov 2006 Posts: 111	Some great info in this thread. Not sure when we will be looking for another vehicle. We used to buy them every 2-3 years until credit problems began a few years ago and then boomed from my job loss in 2004. I have no idea what my credit score is (we are filing Ch7 BK on Monday). Is it worth bothering to check it the day we file or wait until discharge? I see many folks on here bought new cars some 2-3 months after discharge and got pretty steep interest rates. I think a lot of this is nice in some way because buying a new car so soon after BK probably eased some pain and removed some uncertainty in those people. The key is to not overextend yourself - I am facing BK because I can barely pay living expenses plus car payments and rent. Buying a new car would result in payments some $200 or more than what I was paying on the older ones. One thing I need to learn is how to appreciate what I have and not feel the "need" for a new car.

01-25-2007, 08:37 PM	#13
HHM Moderator B/F Guru Join Date: Dec 2004 Posts: 9,515	We would prefer that you not resurrect old threads, (this thread was started in Oct 06). If you have a current question, go ahead an start a new thread.
	The information provided is not and should not be considered legal advice or establish an attorney/client relationship. Nor do I promise or guarantee that the information contained on this post or any linked site is accurate, correct, complete, or current. You should seek the advice of competent counsel licensed to practice in your state to answer specific legal questions. My favorite resources http://www.bankruptcylawnetwork.com/ http://askmethner.com

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