No position letter for car loan

[joekel]

Spoke to trustee today was told that they will give us a no position letter for a car loan. also told us to go out and work with dealers first. loan must be 300 per month and no interest higher then 18% if it is then we must file with court. it seems dealers want letter first. does this sound right

[SMinGA]

Sounds like your trustee has blanket terms that they don't require approval on. ($300 car payment, up to 18% rate.) I'm guessing the 'blanket letter' will state you are authorized for those details.

If you can't find a car under those terms, you'll need to get the trustee's permission. Like if you figure out you need $370 a month for example...

[debtinohio]

Sadly that only gives you just under $12000 @ 5 years at 18%

[Lissy]

Dealers don't need the letter to be able to start working with you. It's the lender that will require the letter from the trustee. Under the IRS standards, you are allowed a vehicle payment of $489 per month. As SMinGA stated, it sounds like your trustee gives a blanket letter for anything up to $300 per month and 18% interest. This probably saves him time, since he doesn't have to read through a buyer's order, sign a letter and fax it back to a dealer. If you can't find something within those guidelines, you will just have to fax the trustee your buyer's order and ask him to approve it. It may take a few days, but as long as your payment isn't more than the IRS standard, you should be fine.

This is what I had to do. My trustee has a form letter on his website and all you do is fill in the blanks with your name, case number, the name of the dealership you are buying from and your monthly payment amount. Then you fax it to him with the buyer's order for the car you want to purchase attached and he signs the letter and faxes it back to the dealer. For me, it was Roadloans who required the permission letter from the trustee. It took 2 days for the trustee to fax the letter back signed. I did receive a call on the first day from the trustee's office asking me what happened to my other vehicle, but once I told them it was totaled in an accident and faxed them the loss report from the insurance company, they approved it without a problem. The dealership actually let me take the car before they had the approval in hand.

[forgotten]

My district has the position that the IRS numbers have no business on schedules I & J. They generally object to any car loan over $400/mo, so you never know about the $489 number.