Have to buy a car before BK
I'm going to file Ch 13 in Florida during the next month or two. I have retained an attorney. Unfortunately I am in a position where I need to replace my car before I file. My attorney said that she can't legally tell me it's OK to do this, which I understand, but to do what I needed to do.
I went to talk to a car dealer today (I told him the truth about impending BK) He said he found someone who would finance a new 2007 lower-end car for me at 16% interest for 60 mos. My intention was to purchase a 2005 or 2006 with some time left on the warranty. However, the deal he presented looked good with rebates, dealer "perks," etc. And the thought of the full warranty through my BK is very comforting.
He said that a used car would have a higher interest rate (22%), no rebates, no dealer "perks", less time on warranty.
I know he's a salesman and will make more $ on a new car. However, I feel like he had some valid points.
My main concern is how it's going to look to the trustee if I come marching into BK court having just bought a brand-new 2007 car, albeit a lower-end car. Has anyone on the Board every done this? I do have receipts and quotes to show that it is necessary to replace my current car. But frankly it does not need to be a brand new car. But with interest, a used car payment will be about as much as new car payment.
It just seems to make sense under the circumstances to buy a slightly older car, even if I don't get all the "perks". I do understanding that the "perks" are folded one way or another into the new car loan, but they look nice because they're maintenance items I won't have to pay out-of-pocket for a while.
I just keep thinking that if I weren't facing BK right now, I still probably wouldn't buy a brand new car. I'd get one a few years old. But since I'm neck deep in unsecured debt, I don't consider myself a financial genius, hence my questions.
Anyone care to weigh in on my delimma? Thanks.
I went to talk to a car dealer today (I told him the truth about impending BK) He said he found someone who would finance a new 2007 lower-end car for me at 16% interest for 60 mos. My intention was to purchase a 2005 or 2006 with some time left on the warranty. However, the deal he presented looked good with rebates, dealer "perks," etc. And the thought of the full warranty through my BK is very comforting.
He said that a used car would have a higher interest rate (22%), no rebates, no dealer "perks", less time on warranty.
I know he's a salesman and will make more $ on a new car. However, I feel like he had some valid points.
My main concern is how it's going to look to the trustee if I come marching into BK court having just bought a brand-new 2007 car, albeit a lower-end car. Has anyone on the Board every done this? I do have receipts and quotes to show that it is necessary to replace my current car. But frankly it does not need to be a brand new car. But with interest, a used car payment will be about as much as new car payment.
It just seems to make sense under the circumstances to buy a slightly older car, even if I don't get all the "perks". I do understanding that the "perks" are folded one way or another into the new car loan, but they look nice because they're maintenance items I won't have to pay out-of-pocket for a while.
I just keep thinking that if I weren't facing BK right now, I still probably wouldn't buy a brand new car. I'd get one a few years old. But since I'm neck deep in unsecured debt, I don't consider myself a financial genius, hence my questions.
Anyone care to weigh in on my delimma? Thanks.
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