Got a car, one week after discharge chapter 7 (APR WOWWWW)

[gamblingsucks]

The good news for me is I no longer have to rely on public transportation like I have the last two months. I just bought a car today one week after a chapter 7 discharge. it was hard to get an approval but I did find a place that managed to get me into a 2005 Nissan Altima with 23k miles and no money down


BUT Im sure as HELL paying for my bankruptcy and inpatiencene now. $569 a month for 72 months 25%apr through Capital One Auto Finance. I have a great job and make good money but anyone can tell you that this is crazy. I plan on paying it of course but how soon can I be looking for refinance? 6 months, 1 month, 10 months? My discharge was August 1st 07

[CATCHMEIFYOUCAN]

Ouch!

I had just bought a car one month before filing, and got financed through the dealer themselves (Hyundai Motor Finance), my rate is 9.9% (might as well be 10%) I pay $344.00 a month (but I send in $350). I got discharged at the end of January, and applied for Capital One, they offered 12 1/2%. I wonder, what they go by when considering ones finance rate myself. Of course I didn't go for it, but I was curious just to see what they had to offer, just getting out of Bk litterally.

Just curious - "gamblingsucks," did you use to gamble?

Best Wishes, and Congrats on the DISCHARGE! Now awaiting CLOSING! Catchmeifyoucan

[gamblingsucks]

Oh no im not a gambler, I work as a casino dealer in Atlantic City

[sara4]

Hey Gamblingsucks,

I'm looking to buy a car after my discharge as well and was hoping to go through Capital One as well. If you don't mind me asking what was your overall credit score? I've been working on mine but I guess my biggest fear is since I let my car go in the BK it will be harder to get financing. Anything you can tell me about the process will be helpful. I really want to go to the dealer with my financing already approved. BTW "catchmeifyou can, I'm actually giving up a Hyundai financed by the dealer at a high APR of 15% and it was long before my BK but right after my home purchase. Guess what works for some just don't for others.

Filed May 2, 2007 -
341 Meeting June 12, 2007 -
No assets declared - July 9, 2007 -
SITTING AT DAY 58 and counting!!!!!

[BKTango]

The good news for me is I no longer have to rely on public transportation like I have the last two months. I just bought a car today one week after a chapter 7 discharge. it was hard to get an approval but I did find a place that managed to get me into a 2005 Nissan Altima with 23k miles and no money down


BUT Im sure as HELL paying for my bankruptcy and inpatiencene now. $569 a month for 72 months 25%apr through Capital One Auto Finance. I have a great job and make good money but anyone can tell you that this is crazy. I plan on paying it of course but how soon can I be looking for refinance? 6 months, 1 month, 10 months? My discharge was August 1st 07

25%.....YOOWWZZAAHH!!!

Please tell us that your payment figure of $560 includes your insurance? Otherwise you are going to be paying almost $41,000 on that car with that fincancing.

I'm curious, since you were already using public transportation, could you not have used it a few months longer and just saved that $569 a month for at least 6 more months and went and paid cash for something out of the newspaper at least to get you by until your credit improved more for you to get better rates?

[emoney]

Well you prove a point that that if you pay enough they will sell a $14,000 (according to Kelly Blue Book) car to anyone.
Maybe a better plan would have been is to open one or two secured credit cards account and pay them off in full each month for six months and then buy something you need and not want.
Not only will new good credit help in the interest rate you car insurance may be reduced by about 25%.
regards,
emoney

[BassBoy]

You've gotta know the tricks!

.....BUT Im sure as HELL paying for my bankruptcy and inpatiencene now. $569 a month for 72 months 25%apr through Capital One Auto Finance. I have a great job and make good money but anyone can tell you that this is crazy. I plan on paying it of course but how soon can I be looking for refinance? 6 months, 1 month, 10 months? My discharge was August 1st 07

Oh my, 25%? No offense, but you should have done a little more research. What I mean is there are countless dealerships out there that will take advantage of someone in your position. I will almost bet that this rate was not the Buy Rate.

At any rate, you can probably look at refinancing after a year of on time payments, providing you don't have a pre-payment penalty. On the other hand, you could be upside down and you may be able to refinance.

The positive to this that you will be re-establishing your credit.

Best of luck to you.

[NowOrNever]

We had purchased a new car six months before we filed with a Ford rate of 12.5% I remember the dealer finance guy saying "You can always refinance somewhere else in a month or two for a better rate." HA! I asked our credit union two months later and was refused. First time I'd ever been refused credit. What a feeling...

Anyway, we were discharged in September '06 (still waiting to close). We have a couple of unsecured cards. I believe hubby's scores are around 595-600 and mine are 605 - 620. We just refinanced with Capital One for 8.4% I was very happy with that. We have the same time remaining on the loan and are saving $60 a month on the payment.

I don't think I could sign on the dotted line for 25%, but I know everyone's circumstances are different.


We have a long, good history before filing, though, so that may have helped.

[CindyLou]

I would go to lendingtree.com immediately and see if you get any better offers. I don't think there are any time requirements to refinance. Even if you bought yesterday you could refinance today....A used car is a used car is a used car. It can't hurt to try. And there is usually no prepayment penalty with capital one. I would definitely try it. Even Roadloans usually gives around 18%. Give it a try and let us know. Even if you can't do it today you will definitely be able to do it in 6 months or so. Congrats on the new car! I know if feels good. Sometimes you just gotta take the hit. You can always "regroup" in a few months on the financing. The important thing is to stay on top of it. Stay current and make sure you do get it refinanced soon.

[gamblingsucks]

Thanks, Good advice