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

[Snax]

For us, the decision to buy new boiled down to an absolute need for reliability and more space. It was a purchase planned years ago - and one we are unlikely to unload for at least 6 years, if not longer.

Cars, no matter how you evaluate them however, are virtually always a money loser. One has to simply decide what their time is worth against such costs. That was very much a consideration in our decision to buy new, and remains no cause for remorse. ;)

[msm859]

I am not against enjoyment, that is why I have the budgetary rules when it comes to transportation 5% of gross monthly for car payment, and 10% total for transportation, etc. If you can meet your "desires" in those confines, then great. But at least let's be honest here, there are need and there are desires. I don't have a problem with people indulging their desires (i.e. new car, hobby car etc), so long as they can afford it. The thing is, when it comes to cars, most people can't. Also, I don't know of anyone that really does a future cost analysis (which I have left out of my recent posts so far). But a future cost analysis addresses what you are giving up in exchange for the inflated car purchase.(i.e. the lost opportunity to have $250 per month grow and save by not spending that money on a car payment for a new car).

But I will concede one point, right now, we are going through a generational shift in the auto industry with total revamp's of available vehicles. The cars that are coming out know, starting in about 2010, are miles ahead of what was available even just 4 years ago. A 2011, $19,000 Ford Fiesta is better equipped and more efficient than most luxury cars that were available in 2007. So, although from a financial perspective, it still MAKES NO SENSE to buy new, I don't begrudge anyone who buys a new car now.

Interesting conversation -- always a lot of emotion when it comes to cars. So HHM do you have a budgetary rule if a business pays the car payment?

[mountanddo]

But a future cost analysis addresses what you are giving up in exchange for the inflated car purchase.(i.e. the lost opportunity to have $250 per month grow and save by not spending that money on a car payment for a new car).

This could be said for really anything you buy above and beyond the neccessities of food, shelter, clothing. I would see spending 30k on a car a waste of money because I would get no more joy out of it than if I spent 5k or 10k on a reliable car. I also think timeshares are a complete waste of money too but thousands of people have them and swear they are saving them money. Different perspective is all.

[HHM]

This could be said for really anything you buy above and beyond the neccessities of food, shelter, clothing. I would see spending 30k on a car a waste of money because I would get no more joy out of it than if I spent 5k or 10k on a reliable car. I also think timeshares are a complete waste of money too but thousands of people have them and swear they are saving them money. Different perspective is all.

OF COURSE it can be said about anything because it is a valid point

In reality, our brains are not wired to grasp the future consequences of a present action. (that has more to do with evolution and our roots where all we cared about was where we were going to get our next meal, so long as we ate and drank, we lived). But now, our financial well being is very dependent on our ability to grasp the consequences, but we have no context for doing so. The unfortunate reality is that most of Gen-X and Gen-Y are going to go through spending money, and end up with nothing but Social Security to live on their retirements years (assuming SSI is even available by then).

So, financial analysis, and purchases require a long view, because if you over spend now, you won't have even enough to meet your NEEDS later. That is my over all point.

[JvilleGarden]

Let's get back to the subject of this forum....

We were Discharged 3/11/2011, Average score was 517 prior to Discharge.

7/31/2011 Approved by Capital One Auto Finance at 11.99%. Purchased used Impala for approx $11,000 with $500 down for 48 months. Credit Score improved to 621 (equifax).

10/8/2011 Approved by Community First Credit Union of Florida at 4.99% for 48 months, payment dropped $89 a month. Credit score continues to improve, up to 646 now (equifax).
(The credit union also approved a $500 Secured credit card). We have the tools and resources to rebuild our credit, time to watch the score improve.

[jojuvan]

Date Discharged: 7/1/09
Lender: Chase
Date Applied For: 11/26/11
Approval Amount: $29,000
Interest Rate: 1.9%!!!!!!!!!!!!!!
Term: 72 months

[CCsAreEvil]

Date Discharged: 12/2009
Lender: Capital One Auto Finance
Date Applied For: 11/2011
Approval Amount: $13k (max)
Interest Rate: 6.5%-7.5% (depending on term chosen)
Term: 36 - 72 months (I'd do 36 months though)

I don't know if I'll be doing a loan. I'm having inner turmoil about getting a car loan. I'll either be paying straight cash up to $7k or buy one around $10-12k (better car.. but still used) and get a loan for the difference. I wish CapOne would do a lower minimum loan amount, something like $5k would be nice. Their minimum is $7.5k. Although, I'll have to read their terms if they allow pre-payment. Also note that a local credit union denied us an auto loan for "any" amount.. they claim since we did a home loan mod (another lender, not the CU), they have a policy not to approve these people (go figure? how's this make any sense?).

[Sarahlmc]

Date Discharged: 6/2009
Lender: Chase and Capital one
Date Applied For: 12/20/2011
Approval Amount: $30,000
Interest Rate: 5.5% and 5.05% (better than before BK!)
Term: 60-72 months
My husband and I both have credit scores in the 670's.

[mountanddo]

So it seems that it takes about 2 years post bankruptcy to get approved for a auto loan. For a chapter 13 would this rule also apply? So I just filed for a three year chapter 13. I'll have to wait for 5 years before I can get a car loan?

[IBroke]

So it seems that it takes about 2 years post bankruptcy to get approved for a auto loan. For a chapter 13 would this rule also apply? So I just filed for a three year chapter 13. I'll have to wait for 5 years before I can get a car loan?

You can get a car-loan right after discharge. The longer you wait and the more you work on your credit, the better the offers. But just getting a loan right after discharge is nothing unusual.

[mountanddo]

Is there anything I can do to improve my credit during the time when I am in an active 13 or do I just pay monthly and wait until discharge? I know I can't get any credit so I'm assuming the answer is no but I thought I'd ask.

[IBroke]

Is there anything I can do to improve my credit during the time when I am in an active 13 or do I just pay monthly and wait until discharge? I know I can't get any credit so I'm assuming the answer is no but I thought I'd ask.

I wouldn't say you can get "any" credit - you just need permission from the trustee.

Once you have made your first payments under your plan, you can ask your trustee if you can either get a secured or regular CC with a lower credit-limit (i.e. $300) to pay for monthly charges like phone, electricity etc. The majority of trustees won't have an issue with that.

[mountanddo]

ok, thanks. I'll probably wait six months or so. Do you contact the trustee directly or go through your attorney. I don't want to incur more attorney fees as it is my understanding that the attorney is there for you only through confirmation.

[IBroke]

ok, thanks. I'll probably wait six months or so. Do you contact the trustee directly or go through your attorney. I don't want to incur more attorney fees as it is my understanding that the attorney is there for you only through confirmation.

I'd say you can contact your trustee directly. Especially after 6 months of timely payments, I don't think there should be a problem. Even a trustee knows that there is a life during a CH13..

[stanpendula]

Loan 1 - not accepted
Date Discharged: 7/7/2011
Lender: Obscure dealer deal (not disclosed by dealer)
Date Applied For: 12/28/2011
Approval Amount: $21,400
Interest Rate: 10.33%
Term: 72 months

Loan 2 - still have the check - not used
Lender: Capital one
Date Applied For: 12/28/2011
Approval Amount: $25,000
Interest Rate: 5.95%
Term: 60-72 months

Final Deal from Dealer's Own Financing
Lender: Hyundai Financial ...
Date Applied For: 12/29/2011
Leased a 2012 Sedan for 36 Mo for $300/mo with 0% interest and $1,000 down

Credit scores all over the high 600 range, up from low 500 after discharge. Both me and my wife got unsecured CC's with HSBC and Orchard Bank, respectively for $1,000 each.