Just Approved, Amazing Rate!

[Scooter10]

So we had our chp 7 discharge 4/08. We went new car shopping a purchses a 26K vehicle with 5,500 down. We were preapproved through capital one at 9.25 percent but they did not approve the franchise dealer we bought the car with because it was not one of their authorized dealers. We were scrambling like crazy to get a loan the dealer ran us through everyone, but the finally found a local credit union that took our loan and got us a rate of 7.49%. This is a better rate than we received before we fiked bankruptcy!!

grant it we have 110K annual income, no debt, and a signigiant down payment, 671/623 beacons...but 7.59% is pretty damn good being only one year out of bankruptcy.

What i recommend everyone to do after their chp 7 discaharge is start building your credit immediatly. Capital one is a bk friendly lender for a credit card, and credit unions are good for shared secured loan. Most lenders are look for reestablished credit after bk with a minimum of 4 bew tradeline.

Good Luck!

[Flowers]

that's great.

drive it in good health.

do you suppose the rate is lower since you are a year out (versus applying just after BK)?

[Flamingo]

We received 0% financing on a brand new 2006 GM vehicle in 4/06 while still in Chapter 13 and prior to discharge after buying out of our Plan. We were told it was because we had great credit prior to filing, paid everything on time during our Plan, and also because we had prior loans with GMAC that were all paid on time and paid off prior to our filing. It all depends on what your situation is, how you handled yourself in the past as to any prior car loans and how you are handling yourself now. SOme places are just more BK friendly than others cause some will just not lend to anyone with a BK on their credit reports.

[debtmonster]

If you have $110k in annual income, why didn't you just put like $10k-15k down?

You make 3x what I make and I was looking to put $10-15k down. If they refuse to give me a low APR, I will simply hold out for a few months longer and pay cash for the car and not finance at all. I was being nice by letting the banks earn a little interest on me.

[Runnin on empty]

Better question would be, if you make $110K a year and have no debt, why not just pay cash?

[debtmonster]

Better question would be, if you make $110K a year and have no debt, why not just pay cash?

Exactly.

[Scooter10]

Exactly.

To re-establish credit. Also it is to protect an investment. If i pay cash and vehicle gets totaled. I am out what the insurnace wont pay, whihc is normally low blue book. I would be at a massive loss especially since i purchased a new vehicle.

But the 2 main reasons are I dont want to put 25K into an auto, even though i could, and to help re-estabish credit

By the way, how do you get notifications that someone responded to your post so i can respond in a more timely manner.

Thanks

[debtmonster]

To re-establish credit. Also it is to protect an investment. If i pay cash and vehicle gets totaled. I am out what the insurnace wont pay, whihc is normally low blue book. I would be at a massive loss especially since i purchased a new vehicle.

But the 2 main reasons are I dont want to put 25K into an auto, even though i could, and to help re-estabish credit

By the way, how do you get notifications that someone responded to your post so i can respond in a more timely manner.

Thanks

You go to "advanced" when you post a reply to this and there's a drop down box for "instant notification".

I may do the same thing. We're looking at a $17,000+ car in the future and I want to put almost $10,000 down next year and use it as a credit rebuilder.

[Scooter10]

You go to "advanced" when you post a reply to this and there's a drop down box for "instant notification".

I may do the same thing. We're looking at a $17,000+ car in the future and I want to put almost $10,000 down next year and use it as a credit rebuilder.

you can even do the car loan for 7K and the credit builder (share secured for the 10K) this way you get two installment loans on your credit report. it will help your score, but increase your DR%, because you have that extra loan.

[debtmonster]

I am hoping to put the $10k down and pay off the car within 6 to 12 months. I don't want car payments hovering over me any more in this uncertain market.

[bigtim6656]

Good point. A friend of mine totaled a new truck 6 months after buying. The insurance company wanted to pay him like half. His first respons was my banks wants it all. They had to pay off the loan. He walked away with a paid off loan and a new truck vs nothing.
I have the same plan as you. I am going to school and plan on making about 100k post school. My hope is i can get a auto loan and maybe a credit card to build up so in 3 to 5 years get a nice loan to build a home. I figure i can build one my self since when i get done with school i will be a general contractor/builder.

To re-establish credit. Also it is to protect an investment. If i pay cash and vehicle gets totaled. I am out what the insurnace wont pay, whihc is normally low blue book. I would be at a massive loss especially since i purchased a new vehicle.

But the 2 main reasons are I dont want to put 25K into an auto, even though i could, and to help re-estabish credit

By the way, how do you get notifications that someone responded to your post so i can respond in a more timely manner.

Thanks

[debtmonster]

I wish I could make $100k. I would not need credit other than for a house. I would pay cash for all cars. No more of this payment crap. I've learned my lesson BIG TIME.

I'm living within my means. Right now I am going through all bank statements for 2009 and hand entering all transactions into Quicken 2009 to see where all of the money is going. So far the majority of it has been automotive related. I need to buy cheaper cars.

[bigtim6656]

I agree but each persons needs or statis of living is differnt. i know people who make 150k a year and ask to borrow money. When you buy a house that cost 250k theres a 1000 plus payment. Two cars theres another 300 or 400 each. Figure two credit cards(one each) theres another say 150 a month. Student loans from school. Because how many people make 150k without college. So theres another 400 bucks or so. Then normaly living cost that vacation everyyear. For some a second house on the lake or beach. It adds up quick. I feel lucky i am in college i get paid 900 bucks a month to go. I have low month bills. If i get a loan the first reason will be to build credit the second is a motorcycle. Hey why can i not kill two birds with one loan. My mom and dad have bad credit. My dad is a disabled vet. Between the two there making about 5500 a mont free and clear no taxs. I keep telling them to fix there credit or file bankruptcy. They do not need to there money is safe no one can take it for bills or anything it buys. They pay cash for everything. Own three propertys a new care and a big nice tv. All paid for.

I wish I could make $100k. I would not need credit other than for a house. I would pay cash for all cars. No more of this payment crap. I've learned my lesson BIG TIME.

I'm living within my means. Right now I am going through all bank statements for 2009 and hand entering all transactions into Quicken 2009 to see where all of the money is going. So far the majority of it has been automotive related. I need to buy cheaper cars.

[debtmonster]

You're not supposed to be buying homes that cost $250k. That's just nuts. People need to haggle and make the price go down. This is the whole reason the economy is in the dumps because everyone in the country is living beyond their means.

I found a real nice condo with a 1 car garage for us for $55,000. This would be great for our needs. These same condo's were selling for $150-300k a couple years back.

Now if I can get approved for something like this a year or so after the discharge, I will be a happy camper! Finally, something AFFORDABLE! Then we'll have cheap cars or cars paid off to boot!! Then if we can make $100k/yr. and have a cheap house and cars with no payments, we will have money left to stimulate the ecomomy instead of pissing it all away on debt the way I have been my whole life.

Here's the condo, just in case you were curious.

$55k condo

Instead of me out looking at $150-200k homes, I want to downsize and live within my means for a change.

Just because you have a household income of $150-200k doesn't mean you need to go out and buy a $400k home or a $30,000 dollar mini-van. Just because you have the income today doesn't guarantee that you will have it tomorrow.

If you buy a $30,000 mini-van, then at least drive a beater for a while and save up $20,000 to put down on that $30,000 dollar vehicle.

[bigtim6656]

I do agree when my parants starting thinking about buying a new home. We looked at the cost range of 100 to 400k. TO get what they wanted it would cost them 200k. But it was a 400k house on lake cumberland. I showed my dad the payment he said ok not a proplem. But his income is from the fed govt. not going to go down or stop coming. But when he saw he was going to pay 450k for a 200k house he said no way. There plan is to build a home. I told them give me a year or two and i will build it for them. When i get out of college for construction. THere saving and will have a 250k house built for 175k free in clear in a few years. And god forbid one day it will be mine.
When i started thinking about post discharge my thought was i can buy a nice 4x4 truck crew cab. Only going to run 300 to 400 amonth but then i though when i get out of school i will lose over half my income and need to start freash. I have come the plan that any loans i get will be to make money i.e build a home sell it. Or a short term loan on something i just want to build my credit pay it of in a year or two. My bank offered me a loan to buy a CD a few years ago the rate they offered was 1% over the CD rate so i was going to pay 1% of the the 2500 for the loan and end up with 2500 when it was done. I doubt i will get near that offer after discharge but it is better then a 25% auto loan with me ending up paying 50k for a 30000 truck

You're not supposed to be buying homes that cost $250k. That's just nuts. People need to haggle and make the price go down. This is the whole reason the economy is in the dumps because everyone in the country is living beyond their means.

I found a real nice condo with a 1 car garage for us for $55,000. This would be great for our needs. These same condo's were selling for $150-300k a couple years back.

Now if I can get approved for something like this a year or so after the discharge, I will be a happy camper! Finally, something AFFORDABLE! Then we'll have cheap cars or cars paid off to boot!! Then if we can make $100k/yr. and have a cheap house and cars with no payments, we will have money left to stimulate the ecomomy instead of pissing it all away on debt the way I have been my whole life.

Here's the condo, just in case you were curious.

$55k condo

Instead of me out looking at $150-200k homes, I want to downsize and live within my means for a change.

Just because you have a household income of $150-200k doesn't mean you need to go out and buy a $400k home or a $30,000 dollar mini-van. Just because you have the income today doesn't guarantee that you will have it tomorrow.

If you buy a $30,000 mini-van, then at least drive a beater for a while and save up $20,000 to put down on that $30,000 dollar vehicle.