Do not want to be in the dark with buying a new car

[Flowers]

I have to get a new car in May.
The lease on my Mercedes-Benz is done then. I had that car from my marriage and I ended up with it.

I never bought a car in my entire life.
I have no idea how to do it.
Cars were always luxury-class and the good service and reliability that came along with it.

I will have $10,000 for a down-payment.

Do I have to go to a bank and ask for a "car loan"?
I do not want to be embarrassed at the car dealer when it comes up that I am a discharged BK.
Is that a normal down-payment? Or do I have to have more. I have more but I prefer to do as little as possible.

Please help a gal who feels vulnerable and stupid and scared.

I can not even imagine going to a Used Car Lot. I wouldn't even know what to do or ask or offer and would feel taken advantage of no matter what.

[Trixie007]

Wow! Research like crazy, see what's available, and pay cash! You can get a pretty nice used car for 10k. It may not be a Mercedes, but you could definitely find something that you can drive for years and not have a car payment.

[ansky0007]

Have you spoken to your lawyer yet? It would seem to me that if you had $10,000 cash laying around there might be fraud issues brought up by putting so much down on a new car.

[Flowers]

This is for a payment I am receiving. i do not have this cash i my possession.
I just do not want to get a poor engine or i a car situation that will end up costing more in the long run.

[Logan]

Why would you be embarrassed at the car dealership? You need to get over that....

[Flowers]

Because i may be turned down for credit since MB may not extend credit to me. I have always dealt with the same car salesman for 12+ years and now with a divorce and a BK, well he'll have to turn me down. Despite fact that I have cash for 1/3 the cost of the car.

[StartingOver08]

I'm sorry - did you say you are going to go buy another new MB?

Why did you turn in the one you had if you are just going to get another new upside down one?

[Flowers]

This was the car I had (leased in the marriage) when I became divorced. It stayed with me throughout that legal situation and also the BK.
I am wanting to get one of lesser cost, and much smaller.

[Flowers]

There is no fraud involved with the cash down on the car.
I am just getting myself on firm land.
When the ex-H left me he took everything and left me with little or no cash on hand for some time. I began to charge everything - auto insurance, food, repairs, medical. And then filed for BK.
Now that the settlement is complete, I will be able to move on, fresh, with a new start. I look forward to getting rid of the car leased during the marriage. Getting a smaller one, less costly, and keeping the relationship I had with my dealer.
I get so angry that he had access to so much, mainly my cash, during the divorce process (2yrs) while I was figuring out how to pay the electric bill.

[hippyguy]

There is no fraud involved with the cash down on the car.
I am just getting myself on firm land.
When the ex-H left me he took everything and left me with little or no cash on hand for some time. I began to charge everything - auto insurance, food, repairs, medical. And then filed for BK.
Now that the settlement is complete, I will be able to move on, fresh, with a new start. I look forward to getting rid of the car leased during the marriage. Getting a smaller one, less costly, and keeping the relationship I had with my dealer.
I get so angry that he had access to so much, mainly my cash, during the divorce process (2yrs) while I was figuring out how to pay the electric bill.

I don't mean this to sound rude but where was your dealer when you where trying to pay your electric bill? Shake the stigma of getting denied for credit. It comes along with the BK. 10K goes along way towards a used car or a new car at almost any other dealership. Keep your chin up if you get denied for credit, knowing that in a pinch you have the means to buy a car outright with no payment.

[Flowers]

I think the dealer was selling my ex-H and his new wife his-and-hers.

Anyway, ok, will keep the chin UP!

[HHM]

http://www.bkforum.com/showthread.php?t=22326

Read this first.

A couple of decisions you need to make
How much can you really afford. If you are going to finance, your monthly payment should be 10% or less of your gross monthly income.
However, with $10,000 cash coming your way, I would STRONGLY recommend you simply pay cash for a car.

New or Used
With a BK and if you are going to finance a car, you will probably have a little better luck getting financed on a new car (more back end manufacturer incentives to work with). But, with $10k to work with, I don't know where you live, but I just ran an autotrader search in my area and found 204 listings for sedans 2001-2004 for under $10,000...good cars too, Honda Civics, Nissan Altima's, Volvo S40, Toyota Camry etc.

Big picture, you would be financially better off simply paying cash for a solid used car, let your credit recover for a couple years and then, if you want to, sell the car you have and finance a newer one.

[Flowers]

thanks, the SUV I am driving now is $939 mo., and I am making that.
I'd like to get down to the $500 range per mo.