Car buying experience after a 13 discharge

[scott29]

Just wanting to get some past experiences on anyone who has bought a vehicle after completing a Chapter 13. One thing we would like to do when we get the discharge is maybe purchase a newer, reasonably priced car. I stopped at a local dealer just to see what my options were and it scared me. They told me they have a bank that will finance people with a discharged bankruptcy. Typically interest rates range from 18-24%! Loan term cannot exceed 42 months-which is not too bad. Payments usually run from $350-$370 a month. How do they know this if they don't know what car I would choose? I found that out as well. There are only a certain few vehicles that "qualify" for the special financing program. So they will give me a couple vehicles to choose from on their lot. For anyone who has purchased a vehicle after their 13, I want to hear your story.

[jade73]

Everyone I have dealt with would not finance us. I think you get treated worse in a chap 13 than a Chap 7. We went to a buy here pay here car lot and they wanted $3000 down. We can get a good used car for $3000 with no payments. It's all a rip off. Best thing to do is get a car BEFORE you file. One of our "options" at the buy here pay here lot was a Chevy Astro van that they probably didnt pay $500 for. You get treated like crap regardless

[scott29]

They said financing would not be a problem, but it comes with an outrageous interest rate and strict guidelines. I agree with you. I know a few people who got to pick the car they wanted and got financed right after getting discharged from a chapter 7. Seems like if you made chapter 13 payments for 5 years and successfully completed it, that would be a plus. Anyone else bought a car after a 13. I would love to hear about the experience you had.

[zeezee]

You didn't say how long you had left in your bk. But I would start saving so that you have enough to pay cash for a good car once you are done. I know that is my plan. I am fortunate enough now to be able to save a good amount each month and barring any disaster costing me my savings, my calculations say I should have well over $40k for a new car once I am discharged. That way I won't have any car payment AND I won't have to deal with any financing!

Good luck!

[scott29]

I have actually completed my plan, just waiting for the discharge. I thought I would talk to a couple dealers just to see what could be done if we decide to get a newer car. As far as saving up, I would have to take what my payment would be and save that, then you are looking at several years. I would imagine it would be hard for most people, including myself to hang on to that amount of money for several years.