Getting Car Finacing

[chucksherm]

Has anyone been able to get a loan approved directly from a bank before going out to a dealer for a used car? That is..going into the dealer already approved for financing. We've already been approved by the trustee to incur $13k in debt to replace the wife's car. We only plan to finance no more than $9k. I've kind of reversed the order of the facts here, but you get my point.
Thanks Chuck

[optimistic1]

Dealers are usually so anal about having pre-approved financing, they always seem to think that they can get you a better deal somehow, and make up excuses, they are crooks for sure, be ready to go to about 10 dealerships to see what games each one of them plays.

Try Drivetime, CarMax dealerships. Also, you could try these little tiny dealerships that basically finance IN-HOUSE, I called one, and they told me, that for in house financing, they require $1000 down, and then the loan is 2.5 years long, at 24% interest, so a $8000 dollard car would run $360.00 a month, sounds bad, but hey you need a car right?

I called Drivetime and they said no problem, just bring my letter from the Trustee, or a letter from the meeting of the creditors, and they can finance with as little as $500 down, or as much as $2500 down, they have a underwriters program that determines everything based on, credit score, length of time at employer, length of residency, hourly wage, etc, etc.


* Find a co-signer . The problem with many types of loans is that if you are in Chapter 13 you can expect to pay some exorbitant interest rates; it’s how companies cover themselves in the event of a default. You can avoid that type of interest by finding someone who can co-sign on a loan for you. Just make sure that you keep making the payments, or they will be responsible for any default!

* Look at non-conventional loans . Most people will turn straight to the bank or the dealer when they are looking for credit on a car loan, but these are not the only places to get credit. There are many companies out there, and some individuals, who can extend credit to people in Chapter 13 for the purchase of a vehicle. Make sure to do your research so you know the company is on the up and up. Again, be prepared to pay extra interest.


Also try these,

https://www.autocreditfinders.com/application.aspx

http://www.autocreditexpress.com/resources/article/auto_loan/

[chucksherm]

Dealers are usually so anal about having pre-approved financing, they always seem to think that they can get you a better deal somehow, and make up excuses, they are crooks for sure, be ready to go to about 10 dealerships to see what games each one of them plays.

Try Drivetime, CarMax dealerships. Also, you could try these little tiny dealerships that basically finance IN-HOUSE, I called one, and they told me, that for in house financing, they require $1000 down, and then the loan is 2.5 years long, at 24% interest, so a $8000 dollard car would run $360.00 a month, sounds bad, but hey you need a car right?

I called Drivetime and they said no problem, just bring my letter from the Trustee, or a letter from the meeting of the creditors, and they can finance with as little as $500 down, or as much as $2500 down, they have a underwriters program that determines everything based on, credit score, length of time at employer, length of residency, hourly wage, etc, etc.


* Find a co-signer . The problem with many types of loans is that if you are in Chapter 13 you can expect to pay some exorbitant interest rates; it’s how companies cover themselves in the event of a default. You can avoid that type of interest by finding someone who can co-sign on a loan for you. Just make sure that you keep making the payments, or they will be responsible for any default!

* Look at non-conventional loans . Most people will turn straight to the bank or the dealer when they are looking for credit on a car loan, but these are not the only places to get credit. There are many companies out there, and some individuals, who can extend credit to people in Chapter 13 for the purchase of a vehicle. Make sure to do your research so you know the company is on the up and up. Again, be prepared to pay extra interest.


Also try these,

https://www.autocreditfinders.com/application.aspx

http://www.autocreditexpress.com/res...cle/auto_loan/

Thanks for the advice. I also learned that car dealers can legally tack on a couple of extra interest points on top of what the lender is offering. So let's say if the bank is offering 19%, the dealer will almost always tack on another 2% (all profit for them) and you end up paying 21% interest. What we'd like to do is deal directly with a lender up front, before ever setting foot on a car lot. Has anyone had success doing this?
Chuck

[StartingOver08]

Thanks for the advice. I also learned that car dealers can legally tack on a couple of extra interest points on top of what the lender is offering. So let's say if the bank is offering 19%, the dealer will almost always tack on another 2% (all profit for them) and you end up paying 21% interest. What we'd like to do is deal directly with a lender up front, before ever setting foot on a car lot. Has anyone had success doing this?
Chuck

Yes. I have been buying cars that way for years. Yes the dealer tacks onto the interest rate and you would be lucky if it is only 2% - the finance guy gets paid a huge bonus based on the amount of premium par rate he charges you. (If par is 6% and he charges you 12% - his bonus is thru the roof). The dealerships usually make more money on the finacing end then the actual vehicle itself. Your best best is to go to a CU and get financing before you step foot into a dealership. JMO.

[optimistic1]

Yes. I have been buying cars that way for years. Yes the dealer tacks onto the interest rate and you would be lucky if it is only 2% - the finance guy gets paid a huge bonus based on the amount of premium par rate he charges you. (If par is 6% and he charges you 12% - his bonus is thru the roof). The dealerships usually make more money on the finacing end then the actual vehicle itself. Your best best is to go to a CU and get financing before you step foot into a dealership. JMO.

I doubt a credit union would give someone currently in a Ch.13 financing. They wouldnt even give me a loan when I had ok credit with a FICO of 650. Your'e both right, the dealers do that all the time to just rob the customer blind, the only thing you can do is let them, and then refinance it ASAP.

Anyone have any real life scenarios where they successfully purchased a car while in a Ch.13?

What were the terms and down payment?

[StartingOver08]

Im sorry. I did not see this thread was in the CH 13 forum - my mistake.