RoadLoans Experience / Advice?

[zakaddy]

I know that they've come up time and time again in this forum - but I was wondering if anyone has had a good / bad experience with them, both in the dealer buying process and the loan overall.

I applied this afternoon since I desperately need a new car (the total to fix my old one was twice its total value - its hosed).. As much as I enjoy taking the bus (cough cough). Well, I got an email saying "You've been pre-approved for a maximum loan of $15,000 - you're getting overnighted the check package..." etc. etc.

So assuming that this isn't bull (heh, pardon my skepticism when dealing with these subprime lender dudes), exactly how "smoothly" does this go?
Has anyone gotten burned this way?
What if the APR / monthly payment is more than I bear, can I just tear it up and be done with it?

Sorry for all the questions. Thanks again everyone - this site kept my sanity through the BK process and awaiting my Ch7 discharge (2 months ago).

[justbroke]

I've used them (Roadloands) and Capitol One Auto Finance and HSBC for those types of checks pre-bankruptcy.

I've never had a problem with them. I have purchased 4 cars on "blank" checks. The dealerships liked them. So long as they call in and everything is in order, you'll have no trouble with the draft. Make sure that you comply with the mileage, make (some don't like KIA), and age (most don't like vehicles over 5 years old).

Also, make sure the LTV (loan-to-value) is not over what they tell you... which is usually 110-120% for new vehicles... so that you can register it.

The only think to watch is the APR.

[lab]

I don't understand why everyone else seems to get approved with road loans declined me my discharge was in july.
Lee

[justbroke]

I don't understand why everyone else seems to get approved with road loans declined me my discharge was in july.
Lee

There are other post-bankruptcy (and post-petition, pre-discharge) companies out there that will loan money for cars.

Basically, the Debt-To-Income ratio (DTI) is taken seriously. The more you have in income, and less you have in bills you pay (including your Chapter 13 payments, if you're in a Chapter 13), will be significant in what they'll loan you. I think the most is $25K anyhow.

[Stilltheone]

I was denied Capital One RIGHT out of bankruptcy, but Roadloans approved me.

We were approved for a loan amount of $15,000 also. We called up and they upped us to $16,600.

Our rate is crazy (20.09%), but I expect it to be crazy anywhere. The nice thing that I like about Roadloans is NO DOWN PAYMENT was required with our loan.

We still have our check and it expires next week Thursday. We have enough equity to bury alot from our old car, but we just need to find someone to BUY our old car first.

If you don't want to use the check, you don't have to. Simple as that.

Only thing I thought was interesting is that they didn't approve me for MORE. Our check will only be approved if we have proof that our old car was traded in. Since our current car payment is $460, I thought for sure we'd get approved for a car payment equal to that. Nope. If we use all $16,600, our car payment would be only $397. I guess it would be nice to have the extra $60!

Good luck to you!

[lab]

Do they call someone in your area because they someone called and said i was approved and email?
Lee

[lab]

There are other post-bankruptcy (and post-petition, pre-discharge) companies out there that will loan money for cars.

Basically, the Debt-To-Income ratio (DTI) is taken seriously. The more you have in income, and less you have in bills you pay (including your Chapter 13 payments, if you're in a Chapter 13), will be significant in what they'll loan you. I think the most is $25K anyhow.

I have no bill except my mortgage i filed chapter 7.
Lee

[zakaddy]

Thanks. I'm going to try it out this week since I need a car asap - I'm supposedly getting my FedEx package tomorrow. There is some scary stuff out there with people complaining about problems with RoadLoans online... but then again, you can find people complaining about just about anything online these days. I'll give them the benefit of the doubt for now.

Also, I was flat-out denied Capital One auto loan too.. I tried them first.

[mnepitjr]

I didn't have any trouble with Roadloans. All my trouble happened with Escrow.com the company they use to pay the seller. It took two weeks exactly and I was approved for the loan a week before. So I guess that means it took 3 weeks to buy the car. Roadloans has already sold my account to someone else and I have gotten the email stating that. The paperwork didn't finalize until Friday the 19th. So make sure you realize this is not a quick turn a round to buy through Roadloans or at least not using Roadloans to buy from an individual anyway.

[justbroke]

So make sure you realize this is not a quick turn a round to buy through Roadloans or at least not using Roadloans to buy from an individual anyway.

That's the kicker. Third-party transactions take longer because they are trying to prevent FRAUDULENT transactions. Those take longer. I've used Roadloans, HSBC Auto, and Capitol One Blank Checks on several car purchases. My car transactions occurred on the day I walked into a dealership and completed and signed the check.

FWIW, RoadLoans always sells their loans off. HSBC Auto and Capitol One write their own loans, so you will have them as your servicer.

[zakaddy]

Oddly enough I just got an email from Cap One regarding my "Cap One auto loan application" (that had been outright denied last week) saying that I have been approved through on of their 'preferred vendors' which just happens to be RoadLoans. I had to chuckle at that.


I've been running over the math all morning regarding my budget and all that, and while a new car is sorely needed and I CAN afford it... is it the right thing to do? I mean, if I use the whole RoadLoans check - that's $15,000 at 17.69% for 72 months... which means that I'm going to end up paying $24,443 when all is said and done.

Obviously its a personal choice in where your priorities lie, etc. but I for someone who just went through BK it seems like a huge decision and financial leap. I'm sure people will have all sorts of opinions regarding this...

I guess if I overpaid it each month I could pay it off early and possibly negate some of the interest...
(but still... 72 months on a used car... I'd better pick one that's damn near bulletproof...)

[justbroke]

I've been running over the math all morning regarding my budget and all that, and while a new car is sorely needed and I CAN afford it... is it the right thing to do? I mean, if I use the whole RoadLoans check - that's $15,000 at 17.69% for 72 months... which means that I'm going to end up paying $24,443 when all is said and done.

Assuming Oct 1, 2008 loan start date.

Your payments would be $339/month, and you'll pay some $9,444 in interest. Your loan would be paid off in October 2014.

If you pay $25 extra a month, you would be done in February 2014 with interest paid of only $8,241 (a savings of $1,200).

[mnepitjr]

The previous owner still had a loan on the car. I also paid 4k less than what the car was worth. So these two things sped up the process because they could verify the car was legit by going through his bank to verify it. There was no inspection of the car by some one certified because of it's location near me. So I was told this process was a lot quicker than most. I would have gladly did the Cap One but no dealer in the surrounding area would accept the check as payment. But all worked out. I have known this car since new and got a great deal on it.

[zakaddy]

Well, I got my check, and just faxed all my stuff to the RoadLoans people. We'll see what happens. I plan on going after work assuming that they call me and tell me that the check is "activated" and all that. So far its been a decently smooth process I suppose.

Hah, forgive me if I don't seem to have any faith in stuff like this - it seems that nothing ever works out as planned, so its better to not get your hopes up until the proof is "in your hands", so to speak.

[Stilltheone]

I faxed in my Roadloans stuff this morning and was denied.

My husband got a promotion Aug 1 and, since our year to date salary wasn't up, they denied us. They refused to look at his commissions and his upped salary. Sad part is, the income is there to be "approved".