Need decent car for work

[FS09]

I'm 8 months post chapter 7 discharge. Things are finally looking up. I was not able to save much in the last year due to my income being cut by 70%. Fortunately, I just got a great new job. They are giving me a monthly car allowance...hence the problem. I need a decent (not fancy) car to haul around clients and the company may ask questions if I pull in with a $1,000 beater and they are giving me $400 per month! My credit scores are in the low to mid 600's. I just applied for Capital 1 and was turned down! Probably due to just starting a new job and my house is still in foreclosure. At least I've been living for free! They said they will explain in a letter that is in the mail. Any ideas? I don't need to spend $400 per month, but again, don't want the company to start asking questions. Since I'm relocating, they rented me a car and are putting me up in a hotel for the 1st month. Is it easier to get financing on a new or used car? I typically buy used, but have been lead to believe my chances might be better on a new vehicle?

[FS09]

Just an update...I went to a local dealer and bought a nice used car. No problems whatsoever! I found a 2009 Nissan Versa with 20K on it for $8,000 with a 72K warranty. They only wanted $500 down due to my BK last year, but I gave $1,000 since I had it. Car problem solved! Big relief. I was just honest and called around to local dealers and let them know my approx credit score, BK discharged last year, etc. A bunch wanted to deal. Really didn't want a loan, but like I stated in my original post...since work is paying I better show up with something decent. Now i can pay cash for a beater for the wife! At least until I save more $...

[freeatlast98]

What was the interest rate on your car post BK? Just wondering, I might have to take the route...

[FS09]

I had to pay 12% for 4 years. Not good, but I couldn't really mess around forever. $230 per month when it was all said and done. Not bad since work is paying me $400 per month pretax for a car.

[freeatlast98]

Thank you for the reply, although 12% sounds a little high, it seems you received a great price for a 2009. I hope I can find the same situation.

[StartingOver08]

I had to pay 12% for 4 years. Not good, but I couldn't really mess around forever. $230 per month when it was all said and done. Not bad since work is paying me $400 per month pretax for a car.

You didn't do bad at all. You can take the difference and bank it and one or two times a year make a lump sum to the principal balance of the car; or, pay X per month extra toward the principal whichever is most comfortable for you. That way you can mitigate the damage that 12% interest does to your bank account. If you want to play around with the numbers www.bankrate.com has a good calculator on figuring the 'what if' scenarios.

[GettingGoing]

Congratulation on the new car. 12% isn't too bad for being less than a year from discharge. Did this dealer finance the care or was it a bank? If it was a bank would you mind sharing what bank it was that you financed through.

[FS09]

I financed the car at the dealership through Toyota Financial. The entire process took about an hour. From driving car, to negotiating , to signing the paperwork.

[mkuki]

OP, that was a good move. I would do the same thing suggested above by StartingOver08.

I wonder if the vehicle expenses are tax deductible, given that you will ferry clients around

[teacher]

OP, that was a good move. I would do the same thing suggested above by StartingOver08.

I wonder if the vehicle expenses are tax deductible, given that you will ferry clients around

It isn't deductible if the employer is paying an allowance.