Buying/Leasing a car after BK

[StaciMM]

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.

[sobroke]

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.

[StaciMM]

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.

[sobroke]

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.

[tinroofrusted]

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.

[StaciMM]

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.

[StaciMM]

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!)

[pink_amulet]

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.

[987654]

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...

[tinroofrusted]

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!

[uwishtoo]

buying a car after BK

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.

[HRx]

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.

[StaciMM]

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.

[soldout]

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~

[tinroofrusted]

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.