Please tell me what you think!

[hopefulrelief]

Hi everyone,
We were discharged from chapter 7 in June. We have 2 vehicles...a 4 yr old Toyota Sequoia and a 2005 lexus 330RX. The toyota will be paid off in one yr and the payment is managable. The Lexus...another story! We bought the car when I quit work (had a company car) and my husband was making a lot of $ (in mortgage industry). Never could we have foreseen where our lives would head! Anyway...we have tried to sell the car outright since the day after discharge...no luck at all. We are priced under bluebook...it is in perfect cond with LOW miles...nothing! So...we are weighting our options. We are thinking we will trade it on something and my parents have offered to cosign a loan for us. This made me nervous for a bit but they would help us if we needed help and know the risk. Our finances are looking up but we have such a long road to recovery. Bottom line we have no business having a $750.00 car payment at this point! Can anyone tell me how a cosigner works? Since our scores are probably horrid (foreclosed on 5 rental properties...thats why we are here), my parents are perfect...whould they go off of their's only? I know if we were on the loan there would be a rebuilding of credit there but would the rate be higher because we were on it? Would it be best for them to lease in their name only with us as insured driver? Want the payments to be as low as possible!

Thanks for the help in advance!

[CindyLou]

Ok, well, wait a second. Did you get the car before you filed bk? Did you reaffirm the car? The answer to both of those questions will greatly determine the answers to your questions. Even if you think trading it in may be the best option. If you inclluded it in your bk and did not reafirm it and you have not real equity then you may be better off giving it back and using something like capital one blank check. You might be surprised that you can get a loan that isn't too bad without a cosigner. Give it a try. If you did reafirm then you have not choice but to either sell or trade. On the co-signer...my understanding is this; you can use a co-signer to make up the difference in the lack of income, but you can't use a consigner to make up the lack of credit. That's what I was told when we were looking for a car after BK.

[hopefulrelief]

HUmmm.
thanks for the input! We did reaffirm so we can't give it back. We wrestled with that decision but I think we did the right thing. O.K...bummer on the cosigner info about income vs credit. This could get complicated, can you trade in a car in our name on a vehicle my Dad would lease in his name for us to drive? I guess I need to call some finiance mgrs! How would you get a cap one blank check? Used to get those all of the time when my credit scores were in the mid 700's!! Not seeing much except offers for crappy credit cards! Any thoughts?

[SinkingFast]

We just went to the CapOne Blank Check website and applied. Approved for $35K, or something like that, at 8.99%.

Went to the RoadLoans website and applied for their Blank Check to see if we could get a better deal. Approved for $29K at 5.99%.

Since we had a set $$$/month payment figure in mind, the RoadLoans deal was more than plenty money. We went with that.

And no matter how BK Friendly Ford is supposedly being right now,......... From our experience, it really depends on the Dealership you work with. They shopped our loan with 6 different Lenders and the best they could do was a really crappy rate on a low level amount. They had a Taurus they really wanted to off load on us.

Poor little BK'ers. Can't do any better. Here,........ Let's gouge 'em while we can.

NOT!!

[CindyLou]

like sinkingfast said you can go to the website and apply, but without being able to see your car outright I don't think it will work for you. Have you tried Carmax?? They buy cars whether you buy from them or not and I have heard they pay about what you what get if you trade. Give it a try.