Bad credit car loans on the internet - a warning

[backtoschool]

I have never said that no one should ever use credit. I have said in the past several times that I totally understand that people want to buy houses again. The problem is the mis-conception that you have to go out and run up a bunch of credit to get a mortgage. Go apply for a mortgage without having one on your credit? Are you serious? I guess that means that no first time home buyers will ever get approved. I bought my first house at 21 years old with NO CREDIT CARDS and certainly NO MORTGAGE. A clean credit report after 2-3 years is just as good as one dotted with secured credit cards and high interest auto loans when it comes time to try to apply for a mortgage again. The only thing those payments are going to do is hinder your ability to get a mortgage because of the horrible DTI ratios you will have with a $500 car payment and monthly credit card payments again. The only mortgage any of us is going to be approved for in the next 5 years is an FHA loan. They certainly do not need to see a boat load of credit usage to approve you.

The things people tell themselves to justify things. I can't drive a nice used car (I love how you always use the word clunker) because it snows. Wow. I can't get a house unless I get a cheezy Orchard Bank card. Wow again. I guess whatever you need to tell youself to make it feel good. Surely there is no one in America that drives a used car in the snow or got a mortgage without a credit card.

Let me just double check this as well.......

Your opinion = OK
My opinion = thread hijacker/person on tirade/disrupts EVERY thread on here (alrighty then)

What happened to you? We used to be cool, and now this? I'll make sure to run my opinion by you in the future before posting it to this board. My fault.

No one is attacking you personally LSU. My post-bk credit repair strategy is mine, just as yours is yours. Both are a matter of personal belief and preference. Let's agree to disagree at this point. I do want to point out however that you and I have different credit profiles. You reaffirmed a mortgage, and have foreclosures on your report. I do not. You are not rebuilding your credit. I am. We both pay our bills in full every month and are saving money. I have 100k in non-dischargable student loan debt. You do not. Each credit profile is individual, and results may vary. I was simply trying to point out that your situation is unique to you and may not apply to the people who are asking questions about loans in this thread. One size does not fit all when it comes to credit profiles.

[MSbklawyer]

LSU, you only see things from one point of view. Why do you never understand any other circumstances but your own?

Well, what did you expect? He's an LSU fan! If he can see things from even one point of view, he's way ahead of most of them. These are the people who, at the Ole Miss / LSU game, play their entire fight song with their arm pits. And that's the women. At LSU, on the bottom of coke cans it says "open other end".

[I'm sorry, LSUTiger32 -- I just couldn't pass that up. Next time I'm in Nawlins I'll look you up and let you buy me a drink to make up for it.]

[LSUTiger32]

Well, what did you expect? He's an LSU fan! If he can see things from even one point of view, he's way ahead of most of them. These are the people who, at the Ole Miss / LSU game, play their entire fight song with their arm pits. And that's the women. At LSU, on the bottom of coke cans it says "open other end".

[I'm sorry, LSUTiger32 -- I just couldn't pass that up. Next time I'm in Nawlins I'll look you up and let you buy me a drink to make up for it.]

LOL! Good stuff!!!!!

[rjmwx81]

The things people tell themselves to justify things. I can't drive a nice used car (I love how you always use the word clunker) because it snows. Wow.

Some people have to use financing just to buy a "nice used car" as you put it. It may be different where you live, but in my area, $2500 won't buy you anything made after 1998 or with less than 150,000 miles. And once you've bought that car, one major repair makes it unfeasible to keep the car, so at that point you're shopping again, and paying cash for a "newer" used vehicle (a year or two old, 40,000 or fewer miles) is simply not an option for everyone.

Yes, people buying cars after BK (or, as was my case, shortly before BK) are paying a lot in interest, but it's a calculated risk. The tradeoff is that they're in a newer, safer, and hopefully more reliable vehicle. A reliable car is basically a necessity. I could see your point if people were getting an Orchard Bank card and using that to buy video games or something, while convincing themselves that they're "rebuilding their credit," but it's a lot harder to blame someone who's using credit to meet their basic needs...even if that credit is expensive.

[LSUTiger32]

Some people have to use financing just to buy a "nice used car" as you put it. It may be different where you live, but in my area, $2500 won't buy you anything made after 1998 or with less than 150,000 miles. And once you've bought that car, one major repair makes it unfeasible to keep the car, so at that point you're shopping again, and paying cash for a "newer" used vehicle (a year or two old, 40,000 or fewer miles) is simply not an option for everyone.

Yes, people buying cars after BK (or, as was my case, shortly before BK) are paying a lot in interest, but it's a calculated risk. The tradeoff is that they're in a newer, safer, and hopefully more reliable vehicle. A reliable car is basically a necessity. I could see your point if people were getting an Orchard Bank card and using that to buy video games or something, while convincing themselves that they're "rebuilding their credit," but it's a lot harder to blame someone who's using credit to meet their basic needs...even if that credit is expensive.

I do admit that I may have misstated myself in one area. It's not a car loan period I am talking about, it's the $25,000 loan, $600 a month payment at 18% people that I am speaking of. I just don't see how people coming off of what they just came off of (BK) can justify that. Read some of the threads on here and you will people doing that 5 days post discharge. I am sorry but if you can afford a $600 car note with those terms, then you should have been filing a 13 and not 7. That's fraud in my opinion.....there is no way you were honest on your schedule I and J if you can afford that.

Anyway, right now if you can't find a car for $2,500 with less than 150,000 miles on it then you aren't looking. Regardless, a $5,000 car loan will get you a nice car and a cheap payment and will help rebuild your credit just as well as brining a freaking Escalade home before your BK even closes.

This is just my opinion, and yes I know some of you disagree. I see some of the things I see and then I just kind threw a blanket statement out there and I didn't really mean to. Everyone knows what they can afford until they lose their job or an emergency hits. Then they will be wondering why they are back in the same situation they were in.

[rjmwx81]

I am sorry but if you can afford a $600 car note with those terms, then you should have been filing a 13 and not 7. That's fraud in my opinion.....there is no way you were honest on your schedule I and J if you can afford that.

In general, your probably right, but, again, every situation is different. Without knowing the specific circumstances it's hard to generalize.

Anyway, right now if you can't find a car for $2,500 with less than 150,000 miles on it then you aren't looking.

Oh, trust me, I looked. The only cars in that price range were extremely high mileage, and some had mechanical defects that were apparent even during the test drive. I'd rather take the risk of defaulting on a reaffirmed car loan than take the risk of buying a car that's on its last legs just to get by until the BK is over, and I think a lot of people feel the same way. Again, other people's experiences will differ. Where I grew up, you could get a reliable used car for $2000-$2500 easily, but I'm almost 1000 miles away from where I grew up.

I'm sure you're right that there are some people who are frivolously taking out new loans after their BK, but that's the exception rather than the rule. A much larger majority are probably like me: they didn't want to take out new debt, but they had to have a car, so they held their nose and signed on the dotted line.

[LSUTiger32]

In general, your probably right, but, again, every situation is different. Without knowing the specific circumstances it's hard to generalize.

Oh, trust me, I looked. The only cars in that price range were extremely high mileage, and some had mechanical defects that were apparent even during the test drive. I'd rather take the risk of defaulting on a reaffirmed car loan than take the risk of buying a car that's on its last legs just to get by until the BK is over, and I think a lot of people feel the same way. Again, other people's experiences will differ. Where I grew up, you could get a reliable used car for $2000-$2500 easily, but I'm almost 1000 miles away from where I grew up.

I'm sure you're right that there are some people who are frivolously taking out new loans after their BK, but that's the exception rather than the rule. A much larger majority are probably like me: they didn't want to take out new debt, but they had to have a car, so they held their nose and signed on the dotted line.

It's not about generalizing. It's about reality. Five days after I filed bankruptcy, there is not a chance I could afford a $500-600 car note. Anyone who can at that point in their financial recovery made out too well in the BK or they are just still in denial about their finances and learned nothing.

Anyway, I am not going to argue about what kind of car you can buy for $2,500. I bought one with 91,000 miles on it, so it can be done although I realize they are not on every corner. Certainly for $5,000 you can find a very reliable car. You do not need a NEW car for it to be reliable, in fact many NEW cars are very UNRELIABLE. I won't touch your sentence about you rather default than drive a older car with mileage.

Like you said, some people think that is the only way. Whatever, I am not going to lose sleep over it. I already have a nice car replacement fund built up, and my car is still running excellently even with the 130,000 miles on it. By the time I NEED to replace it, I will easily be paying cash for a $10-12K car. Another year or two of saving a car note every month instead of sending it to the bank and I'll be in the position to write a check for pretty much whatever I want. I am just going to keep working myself up until I get that yellow Vette I have always wanted!

[msm859]

It's not about generalizing. It's about reality. Five days after I filed bankruptcy, there is not a chance I could afford a $500-600 car note. Anyone who can at that point in their financial recovery made out too well in the BK or they are just still in denial about their finances and learned nothing.

Anyway, I am not going to argue about what kind of car you can buy for $2,500. I bought one with 91,000 miles on it, so it can be done although I realize they are not on every corner. Certainly for $5,000 you can find a very reliable car. You do not need a NEW car for it to be reliable, in fact many NEW cars are very UNRELIABLE. I won't touch your sentence about you rather default than drive a older car with mileage.

Like you said, some people think that is the only way. Whatever, I am not going to lose sleep over it. I already have a nice car replacement fund built up, and my car is still running excellently even with the 130,000 miles on it. By the time I NEED to replace it, I will easily be paying cash for a $10-12K car. Another year or two of saving a car note every month instead of sending it to the bank and I'll be in the position to write a check for pretty much whatever I want. I am just going to keep working myself up until I get that yellow Vette I have always wanted!

I am hoping to file next week and the future car thing is the tough part of it -- cars are my vice. I have always bought/leased new and keep them 3 - 4 years. My plan is when this is said and done to start a car fund and be able to pay at least half down and buy something 1 -2 years old with low mileage. Other than "yellow" your choice of a Vette is good -- there are a lot of garage queens with low mileage.