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Buying/Leasing a car after BK

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    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%.)

      Originally posted by 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.
      Most of my information is from personal experience or HOURS and HOURS of online research. When you're searching online, keep in mind there is no guarantee that the info is completely up to date, and your situation is unique from anyone else's. Do your homework, and consult with an attorney so you can make an informed decision.


        Originally posted by 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...


        You have a lot of nerve for ripping people looking to buy a car after bankruptcy yet you deliberately mislead some guy that didn't know cars to get a "steal" maybe you should look inward before telling others how to behave!


          auto after bankruptcy

          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.

            Last edited by jetset; 04-19-2006, 10:05 PM.


              I was not approved for a car loan through 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.
              Filed : January 13th 2006

              Discharged: April 17, 2006

              Closed: May 1, 2006


              Orchard Card (secured) $300.00
              Hooters $ 1000.00


                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 Loan Companies pull which Credit Reports?

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

                  Last day to object:5/8/06


                    I was approved at 16.5 % no money down with Wells Fargo at Carmax ... I honestly think carmax has buying power loan power....
                    and that was why they could give me 16.5% ..
                    They must move a lot of cars...
                    Mitsubishi could not beat 16.5 they approved me only 20.85% WE have applied for WFS and was denied..
                    16.5 is not a great rate but after calling buy here pay here they charge
                    25% -35% I was told..
                    I feel lucky... I guess... I am not complaining but like I said carmax seemed to get the lowest rate and funny thing was mitsubishi was using the same company .. WELLS FARGO ... Thats why I think the moving of car loans with carmax was a factor... Hope this helps
                    DISCHARGED Case CLOSED = 01/03/2006
                    Credit Cards
                    Washingon Mutual 3000.00
                    HSBC 1600.00


                      Approved for 40k Loan- Just discharged 1 week ago

                      Hi all,

                      This is my first post so I'll share our story real quickly.

                      My husband and I had to file bankruptcy due to several factors, mainly medical reasons. I was making excellent money and my husband is self-employed (general contractor).

                      I stopped working in Dec. 2004. We finally could not keep up w/ our 5k + bills each month and filed bankruptcy back in Oct. 2005.

                      Our bankruptcy was just discharged 1 week ago.

                      We gave up a 2000 Ford F350 Diesel truck, a Audi and initially voluntarily gave up our 2003 Chevy Silverado 2500HD at the beginning of the bankruptcy. We had not heard from Chevy the WHOLE time throughout the bankruptcy and just about 3-4 weeks ago, finally got notice they were filing for relief. Because we originally were clear we were not keeping the Chevy, we were advised by our lawyer to hold on to the truck until they came to get it and obviously not continue making payments.

                      Anyhow, because my husband is a contractor and needs a reliable vehicle for his line of work, we started freaking out after calling around about getting financed. We called places that didn't bother calling us back, other places that deal w/ bad credit, etc. We were told through Buy Here Pay Here it would cost us approx. 4-5K down to finance something about 8-10k. We'd also have to make weekly payments and of course pay sky-high interest rates.

                      We decided that we'd call GMAC's lawyer who filed the Motion for Relief and see if/what they'd do so we can reaffirm the Chevy. We now were behind (counting July 1st's payment) close to $6,000 (591.00/mo). Because we did not object to their motion for relief, the person at GMAC said they could not offer any payment plans, that we had to pay the 6k by the end of July in order to reaffirm the debt.

                      At this point, my husband and I were torn so we went to the drawing board to decide what we wanted/needed to do. We have approx. 4-6k to use towards what we decide but paying $6k for a car that we're already upside down on, that is gas (huge gas guzzler, about 12mpg) and still cost us almost $600/mo. - didn't make too much sense. We've contemplated buying a used vehicle outright but have not found anything that my husband can count on as it's a critical piece of his business and our source of income.

                      We then decided to call a Chevy dealer in our area. I spoke to the same sales person I used to buy this truck as well as the Tahoe I bought before this. I explained our situation and told him we'd like to see if GMAC would possibly approve us for a new loan with them, if we trade our truck in (in short, reaffirming the debt).

                      Well, they ran our credit and low and behold - we were approved!! They are running a promo right now where we can get 0% financing for 72 months. Not only did we get approved, we were approved for 40k at 0% for the 72 months (which was supposed to be for qualified buyers only).

                      I really have no idea how this happened, BUT IT DID.

                      What we're excited about is our monthly payments will actually be LESS than our current one (about $40 or so) but we're getting a diesel, which is much better on gas and has a better resale value.

                      We're trying to work out the details because of course we're only being offered 13k trade in for our truck (pay off was/is 22k).

                      Also to note - I started working again about 4 months ago. I haven't been at my job too long but do make about 77k/yr and my husband makes approx. 55k but is self-employed (which is tough when trying to finance for anything). He's been self-employed for a little over 2 yrs.

                      This was my experience that I thought I'd share with everyone. I also should note we did try but was denied immediately. I was told there was a minimum credit score you had to meet in order to even be considered. They did say if you're approved the approval is good for 30 days so you may apply before your bankruptcy is discharged but you won't be able to sign on it until you provide the discharge letter to them.

                      Hope this can help someone out there!
                      BK filed Oct. 05
                      Discharged June 06

                      Post BK (pre-dispute) scores (as of 8/15/06):
                      Equifax: 549
                      Experian: 545
                      TransUnion: 554

                      SPAY/NEUTER your pets!!

                      One female cat and her kittens can theoretically produce 420,000 cats in a 7 year period!!! SPAY/NEUTER!!!!

                      Indoor cats live an average of 17 yrs, outdoor only 4 yrs - you do the math.


                        i've gotten 3 offers already for car dealers wanting my business after the bk.

                        competition is cut-throat, and just like mortgages - it's not that hard to get approved. They know u can't apply for bk again.

                        Filed: 05/04/06 (los angeles)
                        341: 06/05/06
                        Discharged: 8/29/06
                        Closed: 9/08/06


                          Originally posted by 987654 View Post
                          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'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...

                          Sorry but it is nearly IMPOSSIBLE in this day and age to totally protect your SSN and such and never face the threat of ID theft. Trust me, it happened to me and it can happen to anyone. Paypal and Ebay got me good along with AOL - I never bot to a website to verify information - I dont fall for the phishing email scams - and I still got hit and befroe I knew it my perfect credit was SHOT ! I just got good news though - my credit score just went up a little bit since I reported some errors and they got removed.


                            Originally posted by FloridaGirl View Post
                            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.
                            Yeah I had a Sporting Dealership for Honda tell me the same thing - 2 years miniumum. But then again, I was looking for a totally recreational item, a motorocycle and thats a bit different than a one and only neccessary car


                              Thoughts on buying a used car

                              I thought I'd pitch into this thread, because I just bought a used car 3 years post-BK. (My credit score is only 605 ... so not great.)

                              1. Don't go through the dealer for financing.
                              2. Try your local credit union and talk to them before you go shopping. We got a 4% lower interest rate from the CU than the dealer was willing to offer, based on my husband's credit score; and even based on my score, which is worse than his, the CU was willing to loan at 1% lower interest rate than the dealer was able to offer.
                              3. To the person who tried with Toyota: if you go to a large regional dealer, they might have access to lots of financial institutions. We went to the largest Toyota dealer in the NW, and while we didn't end up buying a car from them, they did offer us a good deal on a used Corolla with only $1000 down.
                              4. I would not try to buy a new car, but one that's not too old is nearly as good and can be a much better value.
                              5. If I'm not mistaken, a lease doesn't help your credit as much as a loan would -- but others on this board probably know more about this than I do!

                              Filed: August, 2003
                              Discharged: Thanksgiving Eve, 2003

                              Total Consumer Debt Granted Since BK: $6,100
                              Total Consumer Debt Left to Pay Off: $1,300 (Plus $50K+ in Student Loans ... )



                                Cars are only one way of getting around. Use lowest cost way to start our with to save up money for buying power. Get credit report cleared up and rebuild credit with secured cards will work every time. With better FICO scores insurance will cost less which helps now and in future years.
                                Leasing is bad because it allows you to use a more expensive car, so you are paying more for depreciation.
                                Cars comming off lease or rental cars are good choices.
                                Pay cash or finance with 1/3 down and for only two years is my rule.
                                If you cannot affod this then you are buying too much car.
                                Why buy or lease something is going down in value like a rock.
                                Another thing to stay away from are mobil homes, as the go down too. Single family home as a rule will stay stable or increase in value.
                                Just some rules I use.


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