Please help

[tsmith05081982]

Hey guys.... First off i want to say how helpful this forum is.. I filed CH7 end of last year due to my divorce and the financial situation it left me in... I got lots of helpful advice from this forum...


My question is.. My parents recently filed CH7.. they just had their 341 meeting this week.. My mother is in need of a new car.. She has a 2001 Sequoia Limited that is paid for... Trade in value is around 8000.00 She is looking at a used vehicle that is 17,000.00 she would be putting down all the funds from the trade in. I told her that with her putting down nearly half the price of the vehicle she should be able to get into the car fairly easy with a fair interest rate... What do you guys think??? Thanks in advance for your help..

[Flamingo]

First, getting the $8,000 trade in value on a 2001 vehicle might be a bit hard and she should be looking at a lower priced vehicle. Getting any kind of financing right out of a Chapter 7 is going to be very difficult and she will be looking at high interest rates of maybe 13% if she is lucky, they will probably be higher if they are even approved. I suggest they ask a lot of questions at some dealerships (talk to the finance manager) before hitting their credit reports with several hard inquiries right after filing.

[epiphany]

Not trying to be harsh, but does your mother really need a new car right now? If her car is safe and running, she would be better off waiting a year or two IMO.

In any case, if her bankruptcy case is not discharged yet, she needs to wait until it is discharged before aquiring any new debt or get permission from the trustee...unless this is a dire need, I wouldn't even ask. Doing so could bring attention to the case and risk possible dismissal. I wouldn't risk it.

ep

[tsmith05081982]

She will most likely wait till the case is dismissed.... She got a quote for trade in on the vehicle from car max for 8000.00 She would only be financing about 9000.00 on a car that books for 18,000.00. I would think a bank would be happy to loan her that much.

[AngelinaCatHub]

Hey, I’m with epiphany: What the heck does she need a new[er] set of wheels for? If it is fuel economy, don’t be a fool. The difference in the car price sure could make up a lot of $10 gallons of gas. WE DON’T KNOW what the future is in gas. I remember the Carter Gas Fiasco, trumped up. Tomorrow it may be a buck a gallon or $100 a gallon and you won’t even afford a moped. Please have her stand down on a purchase. What got her into bankruptcy in the first place??????? Stop the habit. ‘Hub

[Flamingo]

She will most likely wait till the case is dismissed.... She got a quote for trade in on the vehicle from car max for 8000.00 She would only be financing about 9000.00 on a car that books for 18,000.00. I would think a bank would be happy to loan her that much.

If she has a 7 year old vehicle which is apparently in good shape to be valued at $8,000 and she has no payment on that vehicle, your mother should utilize that vehicle for a while, clean up the credit reports (both your parents), work on building her score so she won't be hit with a 20% loan quote on a vehicle loan where instead of giving her $8,000 for a trade, she will be lucky to get $3,000. Right out of Chapter 7, the high interest lenders will be lapping at her heels and your parents will be bombarded with mailings from high interest creditors and car lenders as soon as they get their discharge. Unless the $8,000 valued 7 year old vehicle doesn't run or is ready to die, your mother should play this one smart and wait a bit.