Should I Refinance My Car (if that's even possible)?

[KMC4]

A little background......when we met with our attorney to sign our bankruptcy papers, both he and his Paralegal said that we should try to include our 2003 Ford Expedition (almost 70k miles) into the bankruptcy b/c we owed over $26k on it but it was worth only $8500. The montly payments were $612.98 and we still had 4 years left to pay (72 month term). We had never even thought of this option b/c we just assumed we'd keep the car. We were advised to try to purchase a new car (actually used) before we filed. We were told that our interest rate would probably be high but that in the end it would be better to get rid of the bad debt and get a newer car with less miles, etc. So that is what we did the next day. We purchased a 2007 Suzuki Vitara that had 22,7500 miles on it. Of course the APR was terrible (24.99%) but the monthly payments were less....$482 with a 60 month term. Our credit scores were both under 500.

My question now is what are our chances of ever refinancing this car loan? Would that be a good idea in this case or not? Or would it be better to just keep paying the loan as is?

Any advice is greatly appreciated.

[KMC4]

I forgot to mention that the cost of the Suzuki Vitara was $15,999....the total amount financed was $16,289.19...

[AngelinaCatHub]

This is my opinion only: I’m with your lawyer. For that kind of payment, you could save up two payments and buy a Junker and just keep replacing them or even a decent car at one of these buy here pay here places.

We purchased a car that was like new, one owner, non smoker 90k miles for 1500. It was a wonderful car and like new.

Mrs. drives an old police car with 103K when we got it for 800. I put in 200 for plugs, belts and an alternator and battery. Been driving it for two years now with perfect air and wonderful service. It can be done. It does not look like much, but it gets you from here to there and very economical. ‘Hub

[GoodwinRod]

What are you talking about? Why would the State destroy your title? Actually, why would they even have the title? It should be in the hands of whomever gave you the loan unitl it's paid off, then it will be transferred to you.

You need to provide more information on your situation.

[Trixie007]

Spammer

What are you talking about? Why would the State destroy your title? Actually, why would they even have the title? It should be in the hands of whomever gave you the loan unitl it's paid off, then it will be transferred to you.

You need to provide more information on your situation.

I don't understand this post! Who said anything about the State destroying the title! You only have 3 posts at this time- all are irrelevant to the OP's - and seem to be a way for you to put your advertising link about taking over a lease out there! You even revived a 2 month-quiet post to do this!

Sorry everyone, I'm crabby right now anyway and this just ticked me off cuz I actually spent time trying to figure out what the heck he's talking about! LOL@myself and moving on now

[StartingOver08]

Me too Trixie! Guess it is hard to get rid of spam!

As to the OP, once you are discharged go through your CR's and make sure all the tradelines are reading correctly. IIB and zero balance.
Your score will probably increase.

After you have made at least 12 payments on time, you can then look at the cr market to see if it is worth your while to refinance your vehicle as you will be (are) upside down in this newer vehicle you just purchased. Refinancing adds costs - so you need to weigh the additional costs to refi against your current payment and the potential new payment.

I agree with HUB though....you would have been better off getting a used vehicle for cash or some small payment for a few months. I bought a 2003 Mercury Mounaineer for $6400 paid $3000 down 1 day after my discharge and have payments of $265 for 16 months. I know the rate is terrible, but really I should be able to pay off in less than 12 months and own it free and clear. My personal goal was to get out of high payments (surrendered a car with payments of $651/mth and 30 mths to go!).

[CindyLou]

I refinanced my Cap One loan with Christian Community Credit Union 5 mo's after my bk discharge and got 6.75%

[Stilltheone]

OP,

I would give it 6 months and try to refinance it. What's the worst that can happen?

Good luck to you!

[Mi Bankruptcy]

Maybe I am lost? Why would a bank refinance or consider financing something that is not worth the value of the loan? You might want to try to buy the same vehicle at another dealership and let this one go back in bankruptcy.