Getting a car after discharge when last one was repo'd

[follie]

Hi there!

I searched for information, but couldn't find any. How likely am I to get a car loan after discharge? My car was repo'd over a year ago. I know this will significantly impact my ability to get a new loan. Does anyone have any advice on where to start after discharge so that I can get a car? Living car-less is good for the environment, but I really look forward to getting one!

[CATCHMEIFYOUCAN]

Save A Copy Of The Discharge in caase you need it as proof. Car Salesman Will Be All Over To Get You In A New/used Car - the way they see it you have plenty of disposable income now that you are "debt free." Be Prepared For A High Interest Rate. But Just A Bit Of Info, I Applied With Capital One Just Days After My Discharge Just To See What They Had To Offer. And I Got An Offer At 12.5%, I Didn't Take It Of Course Cuz I Had Already Bought A Car Just Days Before I Filed At 9.9% Interest.

Best Of Luck, Cmiyc

[BassBoy]

Getting an auto loan after your discharge is not all that difficult, but before you walk through the door of ANY dealership, you must first educate yourself. One of the things I usually stress with people in our situation is to try to acquire your own financing. We have a sticky in this section as to which lenders you can try. This eliminates the dealership acquiring financing and the only thing the buyer needs to concern themself with is the purchase price. Also, this eliminates the 4-Square game (sale price, down payment, trade and payment) the salesman will play with you. There are buyers that only concern themself with the monthly payment and do not pay attention to the interest rate and the term. This is where the dealership can raise the interest rate and lengthen the term in order to receive the kick backs. If you eliminate this game, you have more control and you'll save yourself thousands of $$.

[JollyGG]

Since you will probably have a poor interest rate. Buy the cheapest car that will work for you. Try to have a down payment and take the shortest terms you can. That way you will minimize the cost of that high interest rate as much as possible.

[follie]

So the repo won't necessarily rule out me getting financing?

[CindyLou]

I had a repo a before my BK and had no trouble getting either of my vechicles. One through cap. one and one through ford motor....

[SinkingFast]

So the repo won't necessarily rule out me getting financing?

It can, but not necessarily. Many others have gotten financed for a car post BK with a repo or a surrendered car in their Credit History.

BassBoy makes a good point. Get your own financing lined up before you go shopping.

Unless you have a significant down payment, even Ford, who is notoriously BK friendly, won't give you the wowser, super low interest rate.

We just bought. Our local Ford Dealership could only do 11%. CapOne offered 8.95%, fixed, up to 72 months. We wound up with Road Loans at 5.99%, fixed, up to 72 months.

Try Capital One Blank Check, RoadLoans.com, or LendingTree.com and see what kinds of offers you get. They'll quote you an interest rate, max term you can go, and max amount you can borrow. That way, you know what price range you can shop going in and you can work your best deal just like a cash shopper.

[follie]

Thank you!!

[sara4]

Thanks for all the information on purchasing a car after bk. I'm waiting on my discharge, Monday August 13th is the last day for objections so I'm hoping my discharge will come quickly. I'm checking pacer but I'm wondering will I be able to print my discharge papers from pacer? Anyway, good to know I'm not alone and help is out there. I've been cleaning up my credit report but a little stressed about all the late payments and chargeoffs showing up. I also foreclosed on my home as well as surrendered my car but they haven't picked it up so I've been riding for free since May. My lawyer advised me not to reaffirm since I was so upside down and even he can't believe they haven't come for the car. Lucky for me, they've already written it off on my credit report so I imagine once the discharge hit they'll be in my driveway.
Anyway, the best to everyone on rebuilding your credit!!!

Filed May 2, 2007
341 Meeting - June 12, 2007
Declared no assets - July 9, 2007
Last day for objections - August 13, 2007

GETTING DISCHARGED AND CLOSED, PRICELESS!!!

[notavictim]

I'm commenting because I am in a similar sitch...BUT I got approved yeah! See what they sent me in an email???? Its almost too good to be true! I can't believe my luck (SARCASM).



CONGRADULATIONS!!!!!!!!!!!

We got you approved for the car loan you applied for on line. All you will need is a recent pay stub and proof of residence and you can take delivery of the vehichle of your choice Today. Please call me (BOB DEALERSLIME 222-222-9281) as soon as possible for the details of your approval. We have a huge inventory of cars, trucks, vans and SUV's to choose from. Also here's the exciting part. If you are a little short on cash and if you need a down payment (Many banks don't require it) we are running an early tax refund estimate promotion for December. Just bring in a recent pay stub from work and we will get your taxes estimated. You can use any amount of that estimate that you want for your down payment and take delivery of the vehichle of your choice that Day. It's as easy as that. So please call ASAP as this promotion has been a guge success. I look forward to hearing from you soon.

BOB DEALERGUY

[BassBoy]

If this was an offer extended to you and not an actual loan you applied for, then what you received is something most people in BK have received. There are dealers and lenders that probably search the BK records and send that crap to everyone who has filed BK.

I'm also very leary of the early tax refund crap as well. How in the world is that supposed to be a down payment when your actual refund has not been filed and/or received? IMO, this falls under the spot delivery scam. This is when the dealer will let you to take delivery when all of the "i's" have not been dotted and all of the "t's" crossed, then a few days later, the dealer calls with some lame ass reason why financing fell through, but because you already love your new wheels, you're willing to accept a different bullsh!t deal that they claim is the best they could do. Anyways, what happens when your estimated refund was not what the dealer calculated? Hmmm.......I smell a rat!

[bmcmull]

Ok here it goes, I am a special finance manager that works in a store that does about 300 sub-prime loans per month. There are a lot of things to look at in OUR situation. Everybodies is going to be different. If you filed your BK but have negatives on your bureau post confirmation It makes it real tough to get done. If you have cleaned up yuor bureau and have a good FICO score sometimes you can get automatic approvals when they are sent by computer to the bank. IF a loan officer looks at the deal though, for any reason it goes down hill fast. Stay within your approval as to not have a human look at the deal....... I have seen deals with a 700 beacon score get approved with prime rates and I've seen the opposite. I've seen loan officers go in and turn a deal down after it has a system approval. You should also expect in most cases to have a bank fee added to the loan paid to the lender not the dealer. The dealer will make his money on the back end Warranties and etc. This is the job they are hired to do, pick out someone you are comfortable with (in finance not sales) and work with them. Sometimes a good attitude goes a long way in this area. The experince of buying vehicles both prime and sub prime does not have to be bad. It is what we make of it and we usually bring terrible experinces on our selves because we are willing to sell our souls for a few less dollars.....

Have your stips in advance: 1. proof of income and residence.
2. Down payment (cashiers check)
3. 3-5 references ( name, phone number and address)
4. Be prepaired to walk away if it does not work out.
5. Use someone reputable. (You dont want your application
shotgunned to 10 different banks at once.)