This is not gonna be pretty...

[Walnut]

Well, I am surrendering both of our vehicles, one with $3K hail damage, imminent tranny failure, and another $1K in repairs due, already $5000 upside down with 100K miles on it (2001 Odyssey) - the other a stupid buy at 11.7% for 66 months (2003 Lancer) upside down by $6000. This leaves me with no car at all, family of five with lots of activities - scouts, soccer, plus my work.

Spoke to one local dealer that owns several dealerships in San Antonio. Put me to special financing who said - wait until discharge and no problem. Discharge could happen as soon as next Thursday.

Same sales/BK specialist said to expect interest rate of 17.95%. Said options were both new and used. Said wife and I could qualify on our own - offered my mom to cosign (has good credit) and didn't seem to think interest rate would drop - just approval easier. I have about $2000 to put down. Need a minivan, preferably reliable and very recent model year, nothing older than 2005. Looking at Kia, Toyota, and Honda. New goes all the way up to $35000 - not concerned about depreciation since we will drive it into the ground anyway. But I think 17.95% is quite steep. I have a very secure job, same career for 15 years and make $76,000/year which is more than twice the median income in San Antonio.

The specialist was eager to help early on but lately has been ignoring my e-mails for information. After looking around on the forums it seems I ought to try a few online financing sources first off.

Any suggestions would be appreciated.

[FilingOnMyOwn]

Do not pay 18%. You'll be upside down for the first 4 years. Try ford motor credit, which is very bk friendly. You can use it on any of their 7 brands and they also own mazda. Many have gotten low apr offers from them fresh out of bk. Another alternative, is capital one's blankcheck.

[Walnut]

FOMO - you've done a great job rebuilding your credit. Have you purchased any cars since discharge?

[FilingOnMyOwn]

Yes - Cash. I am considering buying something newer tho, maybe 5 years old, thru my credit union at 6%.

[Walnut]

T-minus 4 days and counting until I exit the 60 day club and settled on a Toyota Sienna (either new or used if available). I think the dealer's finance office tried Capital One during the BK and we got a decline. I hope to try again once the discharge posts on PACER. Will then check credit reports to see if it is there and start making sure everything is reported correctly. But I can't wait out the 30-days to get all that in order - so I have to apply right away and take my chances. Dealer wants to put me into 17.95%. I have to be able to do better than that.

[FilingOnMyOwn]

Originally Posted by Walnut

Dealer wants to put me into 17.95%.

Please don't do that. No matter how desperate you feel you are. You'll pay $15,000 in interest alone. By the time you are no longer upside down, you will have paid $30,000 on a $25,000 car, and still owe $10,000 more.

[Walnut]

FOMO - I know. I have to find another option. I will submit to Capital One and Lending Tree and let 'er rip. Somebody has to be better than that. The financing is probably 13% and the dealership tacks on 5% for profits.

[brainless twit]

I feel your pain, Walnut. I had to buy a car before the BK was discharged and ended up with 18% interest. However, I just got approved last night for 10.95% through Road Loans, which isn't bad considering I've only been paying on the loan since December. I'll be able to pay the car off in 48 months instead of the original 66 without increasing the payment, so I'm thrilled. I used to say that if you couldn't pay a car off in 3 years, you couldn't afford it, but that was before BK and the land of high interest rates.

[poorme]

If at al possible, try to avoid using a cosigner, ultimately that will not play well for you with credit-rebuilding efforts. A better choice would be to have family member w/ good credit add you as an authorized user on a credit account that has a cushion of credit you could use as a down payment. Even w/ BK and poor loan rates, money talks - you can buy down your interest rate, but you have to play firm with the dealerships and not let them play Deliverance w/ you.

[CindyLou]

Before you do anything go to Lendingtree.com and see how that comes out. Sometimes lending tree doesn't do the capital one app, so if they didn't then got to cap one and do that one on your own. Also, go into a large ford dealership. Go directly to the special financing department and tell them EXACTLY your situation with the BK. I did just that and got 0.9% two months out of BK . Then 4 months later I got a loan with Cap one for our second vehicle using the blank check..it was 10.9%. Check out your options. The foreign vehicles will be harder to finance that the american ones. Ford is the most lienient, but you have to go through the special financing dept. Don't try to apply online for ford. Good luck and keep us posted.

[Walnut]

We really didn't like the Freestar - will try Lending Tree and Cap One first. Thanks everybody!

[FilingOnMyOwn]

I don't care for the freestar either... But how about a used Windstar, 99-03? Just a cheap vehicle to get you started. You make payments for a year or two, then bam! Your credit is good again. Then trade it in for whatever you want.

[CindyLou]

At this point it is more about you what can and should get versus what you want. Would you go with a 21% rate instead of a 0.9 rate just because you do not care the vehicle. If its functional for your family and safe transportation, I would think the style wouldn't be so much of an issue. A Ford Focus DEFINITELY was not my first choice, but I drove it long enough to get through the BK and save up for what I wanted. Good luck.

[FilingOnMyOwn]

Originally Posted by cindylynnsmith

At this point it is more about you what can and should get versus what you want. Would you go with a 21% rate instead of a 0.9 rate just because you do not care the vehicle.

Very good point. If they're looking at kia, honda and toyota... Honda and Toyota have good resale and reliability, but its not worth paying an extra 10k in interest. And kia, well, has nothing, other than a cheap price tag.

A quick look at Car and Driver Magazine's 10 best cars of 2007 shows there are 2 hondas on the list. There aren't any fords, however there are 2 Mazda's... Which are financed by ford motor credit, who is very bk friendly and has been known to give low apr offers to those fresh out of bk. You can't go wrong with something like that.

[BKTango]

Originally Posted by Walnut

We really didn't like the Freestar - will try Lending Tree and Cap One first. Thanks everybody!

You really need to let go of the "what we like and don't" view and realize financially what you can afford. I have to drive a gigantic and I mean HUGE 1978 Lincoln Town Car for 3 years just to get enough money saved up to pay cash for another vehicle. Honestly you should really be looking into getting some reliable, dependable, and safe for your family no matter what vehicle or age it is....save up some money and wait about 2 years, your credit is looking better and you have a nice down payment ready. That's the way to go right now.