Bought a Car - Approved day after Discharge

[Beach Bum]

That's right. Day after discharge approved through the Chrysler dealer with Capitol One.
Odd because I couldn't get an approval for their blank check online and Roadloans didn't even get me an approval either.
I sure it's because my discharge hasn't hit my credit report yet and there are some lates reporting that need to be removed.

Rate is a little high 16% and I had to put $1000 down.
But, I will try to refi in 4-6 months to get a lower rate.

But I basically bought the same exact vehicle that I had to surrender for less. 1 year newer and only 11k miles.

Wish I could of just bought a junker for commuting , but I needed something newer for driving clients around.

[HHM]

Just a quick note on refi'ing cars. Because they are depreciating assets, even with a lower interest rate, refi'ing cars almost always costs you more money over the life of the car than simply paying off the original note at the higher interest rate. When you refi a car, the amount of the note that needs to be paid off is invariably more than the car is worth at that time; thus, you are essentially re-buying your car for more than it is worth, and you end-up more upside in the car than you were originally.

[Beach Bum]

Just a quick note on refi'ing cars. Because they are depreciating assets, even with a lower interest rate, refi'ing cars almost always costs you more money over the life of the car than simply paying off the original note at the higher interest rate. When you refi a car, the amount of the note that needs to be paid off is invariably more than the car is worth at that time; thus, you are essentially re-buying your car for more than it is worth, and you end-up more upside in the car than you were originally.

That makes sense if you've been paying on it for a few years or so, but if you find a loan at a better rate a few months after the initial purchase, you will pay less over the life of the loan.

[gamblingsucks]

I have a very similar situation to yours. I was discharged chapter 7 8/1/07 and bought a car with capital one for 25%apr I put 1000 down and im wondering why that with the same company my apr is so high. Ive never had a reposession

[HHM]

That makes sense if you've been paying on it for a few years or so, but if you find a loan at a better rate a few months after the initial purchase, you will pay less over the life of the loan.

Mayyyyyybeeeee...you would have to crunch the numbers to know for sure. The only way that is true if if the refi does not charge any fees for the refi, and that the term of the loan does not exceed the end date of the original loan. Honestly, I think you're being a bit optimistic about the rate you will be able to get in a "few" months. But good luck.

[Boscoe]

If you can refi down below 10% and not have to go a longer loan term, then you should be fine. Run the #'s yourself, don't automatically give up because anyone says so. It could well be that it is not a great deal. But if the monthly payments are alot less, then that is something to look at.

[Adchick]

That's right. Day after discharge approved through the Chrysler dealer with Capitol One.
Odd because I couldn't get an approval for their blank check online and Roadloans didn't even get me an approval either.
I sure it's because my discharge hasn't hit my credit report yet and there are some lates reporting that need to be removed.

Rate is a little high 16% and I had to put $1000 down.
But, I will try to refi in 4-6 months to get a lower rate.

But I basically bought the same exact vehicle that I had to surrender for less. 1 year newer and only 11k miles.

Wish I could of just bought a junker for commuting , but I needed something newer for driving clients around.

Hey, Beach Bum. Congrats!
Would you mind sharing what your score was before you filed?
I am considering letting my car go in BK because I am terribly upside down but I have to get another car right away. I'm like you, can't be without presentable transportation for clients.

[Beach Bum]

My scores before filing were around 590-640.
Now they're 510-680. A real large range due to all the items I still need to dispute.

[Boscoe]

Hey Adchick-

If you are way upside down in your car, do not let it go. Have you had it for more than 2.5 years? If so, you can "cram down" the debt to what it is worth today, per Edmunds.com or KBB.com.

How long have you owned it?

[Adchick]

Hey Adchick-

If you are way upside down in your car, do not let it go. Have you had it for more than 2.5 years? If so, you can "cram down" the debt to what it is worth today, per Edmunds.com or KBB.com.

How long have you owned it?

I bought it in July 2005. I wasn't aware of the "cram down" for Ch 7...I thought that only applied to Ch 13?