Bought a car today, 2 weeks after discharge!

[tothelimit]

We received our Chap 13 discharge on 10/28/14. We really needed a car so I went ahead and applied with Cap One. We were approved at 5.5% on the Certified used car were looking at. We were happy with that rate and ready to buy.
We went to buy the car today and were financing at 3.99%. I'm ecstatic! We bought a used Subaru and were financed by Subaru financial (JP Morgan Chase).
There is life after bankruptcy!

[justbroke]

When it comes to automobile loans, there is life after bankruptcy if your pre-bankruptcy automobile loan life was excellent (or even just good). It's all about that magic "FICO Enhanced Auto Score" that makes the difference.

Great job.

[Sammie]

Congratulations, that is such great news! We too were discharged on 11/01/14 & also in need of a car. Our only vehicle has 175,000 mi. on it. We are patiently waiting, but glad to know we will be able to get one. Did you have to put down a large down payment?

[tothelimit]

We were approved with $0 down but we put $1000 down.

[klandsb]

That's great news. They stretched out my car loan in my Chapter 13 payment plan so I now have a 10yr old car that just got paid off thru the plan.. It has been nickel & diming me this past year . I was hoping to get something used but newer once discharge so your post gives me hope that I could get a loan. I would love to get something that gets better gas mileage but obtaining debt after bankruptcy seems so wrong in my mind. I am determined to never again dig a hole of debt I cant get out of but I also realize a reliable vehicle does make sense...

[tothelimit]

I know exactly what you mean. My 10 year old Toyota has almost 200,000 miles on it and frankly we just don't fit into any more.
We are nervous about a new debt but safe & reliable transportation is important. I think what helped us was to know what we wanted to buy and to set a budget and stick to it. It was very empowering to walk into the dealership knowing that we were approved and our interest rate, we felt totally in control.
FYI, I called a couple of dealers who were not on Capitol Ones list of dealers and they said they would take their financing.

[Sammie]

That is wonderful news. Thank you for your response & good luck with your new life. sammie

[IBroke]

Going certified used (with warranty) after discharge is the smartest move!

[gccbusinessf]

One of my friend also purchased a car like this kind of method. The condition of the used car was good and up to now he didn't face any issue with that. The entire finance process also easier for clearing it.






gccbusinessfinance

[newchance15]

I just had my 341 meeting and expect discharge around end of june. I let me car go back to the bank before i filed (Like 3 days). I need a car and am looking at a few used cars. i really hope i get approved. I always paid my car payment on time. Except for the last few months when my lawyer told me to stop paying on it since i was handing it back in.

[PANSYFACE]

I financed a car 2 years after discharge. However, even though I had excellent car payment history and paid them off early, I got stuck with a rate of 10.2 %!!
I bought a used 2009 Honda. Perhaps it was because I had no credit cards or any other credit history at the time. At least this loan is reporting to the credit bureaus.

[klandsb]

Pansyface, hopefully at some point you will be able to refinance . Credit Unions are said to be bankruptcy friendly. If your not already a member I would join one then maybe in a year after making pmts you can proceed that way. Just an idea to get you out from under 10.2%. I am a member and plan on trying with them in the near future when I am ready to purchase. Another thought would be to check out your credit report to make sure everything is reporting properly. I have been working on mine for the past few months. It can really make a difference on your credit rating.

[PANSYFACE]

Thanks - I will have been paying this loan 3 weeks ahead of the due date since Oct. Going to join credit union and see what happens.
I have been checking credit reports. Experian wiped out ALL 48 years of my good history when I filed bankruptcy.

[klandsb]

Pansyface I did apply at the credit union I belong too and was able to secure financing when I am ready @ 4.69% interest. They said my credit score was high for someone who just came out of bankruptcy.. ha,ha ..Its 694. This is probably the most stressed I have ever been about buying a car so taking my time and shopping around . I have gotten a junk mail ad every single day about financing a car from a dealership since they day I was discharged. They must watch the court records for newly discharged people...

[jange]

Nice to see all the good news about car loans. Both of our cars are now 12+ years old and while both still run fine, at some point in time I will be looking to replace at least one of them. I don't belong to a credit union, but maybe I should. I expect to see my discharge in the next few weeks.