Approved for Auto Loan After 341 Meeting Pre-Discharge

[billybob2016]

I was approved for a car loan through Tidewater Motor Credit. They referred me to a dealer they work with which was a few hours from where I live. The loan is for 72 months and up to $20k and 16.9% rate.

Hope this info helps someone else down the road.

[bcohen]

To be honest, 16.9% is a terrible rate, especially if the lender only works with certain dealers which only sell used cars. Often times, the vehicle is sold for way more than it's worth, and together with the high APR, leads to excessive debt for something which may not even last long enough to pay it off. Perhaps you should wait a few months after discharge for your credit to improve, and then see if you can get a better loan, or just buy an older car outright and not have to worry about a loan.

[billybob2016]

Oh I know it is but I can refi in 6 months or a year. They gave the option of new or used and we opted for a Certified 2015 Corolla for $16k with only 17,000 miles on it and zero down. I was at risk of the lender of the vehicle I am surrenduring...repoing my car in the middle of the night and leaving us without any transportation at all. I would have loved to get a beater I just didn't have the cash saved to do it.

Definitely not for everyone but it's important that people know these type of options are out there in the event that they desperately need it.

[LadyInTheRed]

I suggest that anybody who must buy a car wait until after discharge if at all possible. Many report getting much better rates than that immediately after discharge. I would even risk repo. You can buy a car pretty quickly if you need to. But I understand that some circumstances make the risk of repo intolerable/

Definitely refi that loan! You will pay $25,563 if you take all 72 months to pay it.