Credit Scores: How Important are they when getting a new car?

[6ftladycop]

What will car dealers look for concerning my credit scores after bankruptcy? I am thinking of getting a new car in November 08 and my scores now after removal of unwanted items and all are as follows 675 Transunion, 687 Experian, 676 Equifax. I bought the Fico Scores with the 12 reason codes and it was helpful but for the price I paid, did not last long enough for me to continue with my credit score investigation(sure wish there were legitimate places to get free credit scores/most are scams).

Anyway, I still have no idea if these scores are good enough to get a new car and from where would I start in Illinois. I filed a year ago and have not had too many issues, but my leased vehicle is up soon and I know my credit scores and the bankruptcy will have a lot to do with what happens next. I sure hope I do not end up with no car given the fact that my job is so far away where there is no public transportation. Anybody got any suggestions?

[keepmine]

Those credit scores are decent but, when it comes to secured lending, you'll find auto dealers use an enhanced FICO that is geared towards there industry. Things like income and debt to income ratio and prior auto loan preformance are all factors.

[Flamingo]

Your BK will work against you as to a new car loan. The major car manufacturers are losing money left and right and they are very picky right now as to lending money where there might be a risk as to repayment. Same for banks. The best thing to do is go to a car dealership where you may have had a past car loan (i.e., GMAC, Ford Credit) because if your former car loan was paid in full and all payments on time, that does work in your favor as to any financing on a new vehicle.

[Joe Farmer]

I think a whole new way of living is coming.

Credit scores are going to be gone, since most people will have rotten credit. I also think that the worse the auto market gets, the EASIER they will sell new vehicles to recent BH filers, because beggars CAN'T be choosers...

[JRScott]

I wouldn't aim for a brand new car. Look for an older car that can get you buy quicker and that you can either buy outright or make a considerable downpayment on.

[HHM]

I wouldn't aim for a brand new car. Look for an older car that can get you buy quicker and that you can either buy outright or make a considerable downpayment on.

Actually, it can be easier to get financing on a new car than a used car for a recent BK filier (so long as what your trying to buy is reasonable). Reason has to do with all the incentives the manufacturer can offer the dealer.

But correct, from a purely financial point of view, buying a used car in good condiation ALWAYS makes better financial sense than buying a new car. (Car buying advice in the sticky threads, http://www.bkforum.com/showthread.php?t=22326).

With credit scores in the 670's, you should have no trouble getting financed.

[6ftladycop]

Well I make enough money. The debt to income ratio after bankruptcy includes rent, utilities, cell phone, car note and care insurance. I just checked General Motors online website for my payment history and I have never been late since 2005. How is that?

[6ftladycop]

Can I buy a new car from the same dealer I leased from with these credit scores on "return the car day"?

[HHM]

I would think so. Mainline dealers have access to all levels of credits, deals become problematic when buyer is less than 560, otherwise, they can probably get you financed if you above that score. (especially if you have a down payment).