Who were approved through post BK and some details...

[researchnerd]

Curious . .did these offers all come from CarMax?? Or did you go out and apply independently?? I am going to be looking to purchase a car in the next few weeks and I am wondering the best way to go about it. My Credit Score is 651-670, depending on which bureau is pulled. I have a Chase card (2 years never late) and secured loan from credit union (never late) that are post filing bk13. My bk13 will be discharged any day . . and I am wondering if my credit score and decent 2 year history will be enough to get me financing below 12%.

All the offers came right from Carmax. They take your info once, then shotgun it through a bunch of different lenders at one time online. You can apply by phone, but if you go in person you can see all the offers coming in, one at a time, on the computer monitor. Then you can compare and pick the one you want. It was way more straightforward than a regular car dealer, and the whole thing took about ten minutes from start to finish.

The Carmax salesperson said that the lenders seem to be clamping down on credit a little, but that they successfully sell to people post-bankruptcy all the time. There are a million different things factored into credit decisions, so I hate to speculate, but it sounds like you might be able to pull it off after your discharge. Before you try it, I'd advise checking your credit reports carefully to be sure all 3 CRAs are reporting your discharge and that everything included is reporting correctly (IIB, $0 balance). Mine were mostly OK but I had to dispute a few that were off.

[Kuya]

Curious . .did these offers all come from CarMax?? Or did you go out and apply independently?? I am going to be looking to purchase a car in the next few weeks and I am wondering the best way to go about it. My Credit Score is 651-670, depending on which bureau is pulled. I have a Chase card (2 years never late) and secured loan from credit union (never late) that are post filing bk13. My bk13 will be discharged any day . . and I am wondering if my credit score and decent 2 year history will be enough to get me financing below 12%.

I surrendered my Mazda in November and went three months with no car....it was a major pain in the ass just getting back and forth to work. I didn't want to incur additional debt, but finally realized that was my best option, both in terms of rebuilding my credit and getting a dependable vehicle. I saved my pennies for a decent down payment of $2,000, and headed off to Carmax. I found a nice 2008 Acura for $2k under KBB and gave the financing a try. My FAKO score is about 640, up from 570 in mid-bankruptcy, so I figured I'd get something like 18% financing. I wanted to have them pull my credit before my foreclosure in a few weeks, so the timing was right. Lo and behold, I got three credit offers:

Date Discharged: 11/2010
Date Applied For: 2/2011
Approval Amount: $20,000

Lender 1: CapitalOne
Down payment: $2,000
Interest Rate: 10.25%
Term: 72 months

Lender 2: Santander
Down payment: $2,000
Interest Rate: 17.49%
Term: 72 months

Lender 3: Wells Fargo
Down payment: $7,200 (!!)
Interest Rate: 17.04%
Term: 72 months

Needless to say, I selected the first offer from CapitalOne. I found it interesting that they gave me the best rate. I had a Cap1 car loan about 8 years ago, which I paid in full and was never late, but I also discharged a Cap1 CC in my BK. I've had a Wells Fargo car loan more recently, also paid in full and never late, and also discharged a WF CC in my BK. So why the much higher WF rate and down payment requirement?

I also found it interesting that none of the lenders offered terms shorter than 72 months. My payment is under $400 though, and the loan is simple-interest and has no penalty for paying early, so I should be able to double up on payments and get it taken care of in 3-4 years.

I have to add...Carmax is the bomb. No pressure, no haggling, no back-office shenanigans. I test-drove 4 different cars and tried on at least a dozen more, and they were patient and courteous throughout the entire process. I told them up front that I had a recent BK and they still treated me as well as if I were paying cash. I also loved having three credit offers to choose from, even though they were all subprime. I would do business with Carmax again for sure.

[TwentyTwelve]

Date Discharged: 09/2010
Date Applied For: 1/2011
Approval Amount: $18,000-$20,000

Lender: CapitalOne
Down payment: 0
Interest Rate: 7.31%
Term: 60 months

[researchnerd]

I surrendered my Mazda in November and went three months with no car....it was a major pain in the ass just getting back and forth to work. I didn't want to incur additional debt, but finally realized that was my best option, both in terms of rebuilding my credit and getting a dependable vehicle. I saved my pennies for a decent down payment of $2,000, and headed off to Carmax. I found a nice 2008 Acura for $2k under KBB and gave the financing a try. My FAKO score is about 640, up from 570 in mid-bankruptcy, so I figured I'd get something like 18% financing. I wanted to have them pull my credit before my foreclosure in a few weeks, so the timing was right. Lo and behold, I got three credit offers:

Date Discharged: 11/2010
Date Applied For: 2/2011
Approval Amount: $20,000

Lender 1: CapitalOne
Down payment: $2,000
Interest Rate: 10.25%
Term: 72 months

Lender 2: Santander
Down payment: $2,000
Interest Rate: 17.49%
Term: 72 months

Lender 3: Wells Fargo
Down payment: $7,200 (!!)
Interest Rate: 17.04%
Term: 72 months

Needless to say, I selected the first offer from CapitalOne. I found it interesting that they gave me the best rate. I had a Cap1 car loan about 8 years ago, which I paid in full and was never late, but I also discharged a Cap1 CC in my BK. I've had a Wells Fargo car loan more recently, also paid in full and never late, and also discharged a WF CC in my BK. So why the much higher WF rate and down payment requirement?

I also found it interesting that none of the lenders offered terms shorter than 72 months. My payment is under $400 though, and the loan is simple-interest and has no penalty for paying early, so I should be able to double up on payments and get it taken care of in 3-4 years.

I have to add...Carmax is the bomb. No pressure, no haggling, no back-office shenanigans. I test-drove 4 different cars and tried on at least a dozen more, and they were patient and courteous throughout the entire process. I told them up front that I had a recent BK and they still treated me as well as if I were paying cash. I also loved having three credit offers to choose from, even though they were all subprime. I would do business with Carmax again for sure.

[yang0837]

Date Discharged: October 26, 2010
Lender: Americredit
Date Applied For: 01/15/2011
Approval Amount: 18k
Interest Rate: 15.5%
Term: 60 months

I bought a 2009 Toyota Corolla, 30k miles, for $13k (including tax, title, and $750 down payment) on 1/15/2011. The interest rate was 15.5%, 60 months, and my monthly payment is $330. I plan to pay the amount that I was previously paying for my Mazda 6, $484 a month to pay the loan off faster. I surrendered my Mazda 6 because even though I was current on payments and insurance, Wells Fargo wanted me to pay the remaining balance of $9k since I did not reaffirm.

My credit rating was in the 590's.

[liboton21]

BK closed: May 2010
Loan: $16955
APR: 17%
Bank: Toyota Financial
Down payment: $1500
Credit score: 591 when they pulled them, they say theirs is an auto credit score while the 647 was for residential loan did know if this true or just BS but we got approved. I will refi in a year once credit is established.
Free credit score: 647

[Laurie77]

Thank you, gacreditguy, for starting this thread! This is exactly the info I was looking for. Our 341 is on February 8, 2011. We're filing Ch 7 bk, no assets. We moved to Washington from California and have found that the little car I drive might not cut it out here during the winter months. (otherwise I'd drive the thing till the wheels fell off since it's paid off) My husband is more comfortable with me driving an SUV, or at least something with all wheel drive. But with the bk, we're wondering when we'd be able to buy a new/used car? This thread is great info to know what lenders are willing to lend to people like us and we can get an idea of what interest rates are out there for us. You gotta figure we can't file bk for another 8 years, and the typical car loan usually isn't more than 6 years, so you'd think we'd be the perfect candidates for a car loan. Thanks again!

[Kuya]

Update . .

I was slightly confused . . which is why the super high interest rate.

My BK13 was listed as "Status: Closed with a Completion Date: 1/6/2011" and I thought that meant I was done LOL. But, apparently closed and complete are not quite what I thought they were. I still need to wait for my 13 to get discharged by the court. Then, and only then, does it get reported to the Credit Bureaus. So, when these credit apps were run, it shows my 13 still open.

I am guesstimating about 6 - 8 more weeks before it is "Discharged" I will hold off and try to get an auto loan after that happens and then report back.

[mikemike]

21% is de high..i say wait and look around a little more....keep us posted on ford

[Kuya]

BK 13
Date Closed 1/6/2011

Applied for loan on 1/10/11
Cap One: Denied, because BK does not show as closed on credit pull yet. They told me to re-apply as soon as it shows closed. No mandatory wait period for re-apply.

RoadLoans:
Instant Approval for $20,500 with $3,500 down and a WHOPPING 21% interest.

This will be a last resort . . . with the thought of refinancing at my Credit Union in 12 months.

My Credit Union:
Can't finance me until 12 months out of BK 13. Told me to bite the bullet and take the high financing from a dealer and hope for 10 - 14% . . and then they can refinance me in 12 months for about 4.5 %

Dealer:

Ford Dealer is trying to get me a lower rate right now . . will know more tomorrow morning . what rate they come back with.



Road Loans: I

[mikemike]

what was ur credit score? and no downpayment? btw how this the process go? its been about 3 weeks now..

[BKInLA]

As someone who is going to need to get a car loan over the summer, this is pretty promising.

Did you get any credit cards after filing to rebuild your credit?

No, I haven't really done anything credit-wise and I didn't even reaffirm my mortgage or car loan I am still paying. Kinda wish I at least reaffirmed my car right away as I will definitely keep it as long as I'm working.

[dumpinmydebt]

Before we filed for BK my wife and I sold her car to Carmax for a nice profit and she went back to driving an old "third" car we paid off years ago. Then a few months after BK it takes a dump and the transmission goes out. Gonna cost $2500 to fix it and then it's still a 19-year old car with no Heat/AC, bad gas mileage, etc...

So we're desperately thinking what we're gonna do when I stumble upon this thread. I got turned down for a loan from my CU so I kinda gave up hope on being able to finance but I saw a lot of ppl had been getting approved through CapOne. So I applied and got approved in 60 seconds, with no proof of income or anything. Here are the stats:

Date of Discharge: 07/2010
Date of Loan App/Approval: 12/2010
Amount Requested Approved: $18,000
Interest Rate: 7.31%-11.71% (It's a sliding scale based on the age. 2010-2006/older)
Bank: Capital One

They're sending a blank check that I have to take to one of their approved dealers and I can just pick out a car and drive off. Pretty simple...

Some other info: We didn't reaffirm anything post-BK but we did keep our house and my car loan (which we have just been paying but not being reported, obviously).

Those two things cost us about $2500/Mo and I put down that I make $6100/Mo. I didn't include our home business income in that figure, just what I make at my 9-5 job. The operator told me it wouldn't have made a big difference in the interest rate just might be easier to get approval for a higher amount. I left it out in case they require full docs so I could just send a check stub.

As someone who is going to need to get a car loan over the summer, this is pretty promising.

Did you get any credit cards after filing to rebuild your credit?

[nomoneynomore]

We have no other debts such as rent etc as our rent and utilities are included in our employement salary, so a bigger monthly payment isn't a big deal. We did make sure to not get in too deep in case we have to change jobs and go back to paying rent & utilities. We also took out a Orchard CC & a Premier CC in July 2009 as a way to establish and rebuild credit. We have since changed to "better" CCs (2 of them) that we pay off in full every single month, NO exceptions.
Post BK Loan #4
Date Discharged: Sept 08
Lender: Boeing Credit Union
Date Applied For: Sept 2010
Approval Amount: $30,000 on a 2011 Kia Sorento
Interest Rate: 6.24%
Term: $472 for 78 months with $0 down. Starting in Feb. we will pay $725 per month on this loan since we won’t have 2 loans to pay on. We will also pay at least ¾ of our tax return each year toward this and plan to have it paid off in 2013.

Post BK Loan #3
Date Discharged: Sept 08
Lender: Local Credit Union (same as loan #2)
Date Applied For: August 2010
Approval Amount: $6500 secured by a 2001 F350
Interest Rate: 6.45%
Term: $252 for 36 months with $0 down.
Notes: We will be paying this loan off in Feb when we get our taxes back. We will then apply the $250 toward our 4th loan to pay it down faster.

Post BK Loan #2
Date Discharged: Sept 08
Lender: Local Credit Union (not Boeing, they denied our refi)
Date Applied For: June 10
Approval Amount: $10,100 secured by a 2001 F350
Interest Rate: 8.75%
Term: $321 for 36 months with $0 down
Notes: We sold the van in July & paid the loan down to $4500. We then borrowed $2500 for a big purchase & refinanced at the same local credit union in August.

Post BK Loan #1
Date Discharged: Sept 08
Lender: Boeing Credit Union
Date Applied For: Sept 09
Approval Amount: $11,500 on a 2004 Mazda MPV
Interest Rate: 12.9%
Term: $235 for 50 or 62 months (can't remember) with $0 down
Notes: Never late and paid at least $50 extra every month. Refinanced June 2010 (we took out a loan on a pickup we had paid off so we could release the lien on the van and sell it)

[BKInLA]

Before we filed for BK my wife and I sold her car to Carmax for a nice profit and she went back to driving an old "third" car we paid off years ago. Then a few months after BK it takes a dump and the transmission goes out. Gonna cost $2500 to fix it and then it's still a 19-year old car with no Heat/AC, bad gas mileage, etc...

So we're desperately thinking what we're gonna do when I stumble upon this thread. I got turned down for a loan from my CU so I kinda gave up hope on being able to finance but I saw a lot of ppl had been getting approved through CapOne. So I applied and got approved in 60 seconds, with no proof of income or anything. Here are the stats:

Date of Discharge: 07/2010
Date of Loan App/Approval: 12/2010
Amount Requested Approved: $18,000
Interest Rate: 7.31%-11.71% (It's a sliding scale based on the age. 2010-2006/older)
Bank: Capital One

They're sending a blank check that I have to take to one of their approved dealers and I can just pick out a car and drive off. Pretty simple...

Some other info: We didn't reaffirm anything post-BK but we did keep our house and my car loan (which we have just been paying but not being reported, obviously).

Those two things cost us about $2500/Mo and I put down that I make $6100/Mo. I didn't include our home business income in that figure, just what I make at my 9-5 job. The operator told me it wouldn't have made a big difference in the interest rate just might be easier to get approval for a higher amount. I left it out in case they require full docs so I could just send a check stub.