Is zero down possible?

[Confused33]

I filed Ch7 and was discharged in 4/09. Since then I have received a $1000 Citibank card which I used once and paid off when the bill came. I did that just to show some pay history. I have also used Conn's credit (12 mos 0% interest on $1000 for a washer and dryer). My scores last month were 630 - 660.

Can I buy a car with zero down? I'm looking at a used one for about $18K and a new one for about $22K.

[Tbornetun]

I highly doubt it, but who knows. Most creditors are not even approving people with scores in the 700s without a substantial down payment. (husband in the car sales biz) Your best bet would be to try going to a credit union, they may be able to help you.

[AngelinaCatHub]

Hey Confused. Don't be confused with this credit stuff. You just got your new start and you are hitting the CC and cars already? What is wrong with a $2500 car? I got one at auction worth 6K, 95K miles and everything on it worked including the electronic dash. BE CAREFUL, not confused. 'Hub

[Confused33]

I didn't "hit the credit cards". I got a pre-approval in the mail and knew it was the first step to rebuilding + they were offering me 0% for 6 mos. I charged a few hundred because I knew I had the cash and paid it off the next billing cycle. Just trying to rebuild.

I bought an 05 Dodge Ram in December, right after I filed for $8500. Been driving it but I've put tons of money in gas in it, $600 in new tires, $250 in a back window that got broken this week, and it needs about $500 in front end work. I went to the dealer to see what they'd give me and they said $8000. Why wouldn't I trade it for something that gets 29 MPG when I'm getting 15 and spending money on it?

I attempted to put it in my wife's name (who didn't file) and they wouldn't finance her because of a student loan issue.

I gave up on it. My score was 660 last month when I was dealing with Bank of America on the MHA bullsh*t. Today it was a 590. I haven't done a damn thing with my credit since last month (when I spoke with BofA) so I don't know what the hell happened to my score.

I'm just gonna keep dumping money into the Dodge and forget about it.

[HHM]

Auctions are a great way to get a car, especially if you can find a city or county auction that is off-loading "their" vehicles (actual city vehicles), those vehicles tend to be well maintained. You can get pretty good deals at impound auctions, but buyer beware.

I think for post chapter 7, zero down is unrealitic.

For purchases of cars, any score above 620 can get financed, but zero down...fat chance. Maybe with Pontiac (i.e. going out of business), aggressive incentives, and a new car, but even then...???

[rex444]

Just fyi, i could not get approved for an 04 Sequoia that I got for 16k and had 4k down plus my trade of $2500. My scores were 610ish. Each case is different and I got approved for a newer car with less down but not with zero down.

[bxphae]

This isn't a real scenerio but can work for a used vehicle and never once have I had to put any downpayment towards a used vehicle...

Lets use a 2006 Mazda 6s Grand Sport sedan 5speed manual with 19,500miles (actually a car I'm looking to possibly finance after discharge)

Lets say you were approved for a $16,000 loan (maximum amount)
Banks guidelines will only loan you 115% of the vehicles trade-in value
The used vehicle you are looking at is $12,950 but you were able to negociate it down to $12,100 OTD (including dealers overpriced B.S. "filing" fee). NADA trade-in value is $10,900

Loan value is $10,950 x 1.15 = $12,593

That means you are 100% covered with no downpayment.

[debtmonster]

I've learned my lesson after a bankruptcy. NO MORE of those zero down deals for me. That's what got me into trouble all this time. From now on I will either buy a cheapie no frills car for cash or I want to put at least $5,000+ down.

[lifelesson]

AS for the down payments I heard this weekend that the cash for clunkers $4,500 is some how gonna be attached to income for taxt purposes. So be carefull if you planned on using that plan at all.
Good luck with the Dodge.

[teacher]

This isn't a real scenerio but can work for a used vehicle and never once have I had to put any downpayment towards a used vehicle...

Lets use a 2006 Mazda 6s Grand Sport sedan 5speed manual with 19,500miles (actually a car I'm looking to possibly finance after discharge)

Lets say you were approved for a $16,000 loan (maximum amount)
Banks guidelines will only loan you 115% of the vehicles trade-in value
The used vehicle you are looking at is $12,950 but you were able to negociate it down to $12,100 OTD (including dealers overpriced B.S. "filing" fee). NADA trade-in value is $10,900

Loan value is $10,950 x 1.15 = $12,593

That means you are 100% covered with no downpayment.

The purpose of banks requiring a person to make a downpayment is not always directly related to the loan amount. Putting a hefty downpayment shows that you "have something to lose". Anyone post ch7 is going to need to put money down (except in rare cases in which I think there is some funny business going on) to show that they are financially stable enough to go through with a car loan.

Some lienance managers (finance managers) like to skim around this practice by bumping the price of the vehicle and then saying the customer was making a down payment for that amount.

Example
Car = $10,000
Buyer = $0 down
Bank says no

Car = $12,000
Buyer = $2,000 down
Bank says yes

In both cases, the individual actually did not put any money down. The dealership just rearranged the numbers.

[debtmonster]

The mortgage broker did something similar when I bought my house. He bumped the price and did something so that my own payment at closing would be less, but we ended up financing the extra money.

[Mi Bankruptcy]

The purpose of banks requiring a person to make a downpayment is not always directly related to the loan amount. Putting a hefty downpayment shows that you "have something to lose". Anyone post ch7 is going to need to put money down (except in rare cases in which I think there is some funny business going on) to show that they are financially stable enough to go through with a car loan.

Some lienance managers (finance managers) like to skim around this practice by bumping the price of the vehicle and then saying the customer was making a down payment for that amount.

Example
Car = $10,000
Buyer = $0 down
Bank says no

Car = $12,000
Buyer = $2,000 down
Bank says yes

In both cases, the individual actually did not put any money down. The dealership just rearranged the numbers.

This is pretty much how I always had my cars financed.. I reversed the mental game on the sales people. Tell them I have 1500 to put down get their time invested in me and then last minute tell them I had to use the 1500 for something else and I wouldn't be able to buy the car.

Now.. that being said I would never do that on a new car. I only buy used cars and their better be plenty of room for the cost of the vehicle. I have never been upside down in a vehicle.. come to think of it.. in my house either. I have only had one dealer call my bluff.. I walked on them and went to another dealer.

[debtmonster]

I have only had one dealer call my bluff.. I walked on them and went to another dealer.

How did he call your bluff? Can you give us a scenario? I like reading this stuff.

[Never_Again]

0 down is probably not possible, nor should it be possible!

As far as re-writing the numbers as stated above, that probably won't work either! Most banks will lend a percentage of the retail value of the vehicle. Just saying that I sold it for $12K instead of $10K doesn't mean the retail value is any more than the $10K that it is.

A lot of people doing that with houses are getting real rude awakenings now. It is called "loan fraud."

[debtmonster]

A lot of people doing that with houses are getting real rude awakenings now. It is called "loan fraud."

(Using the voice of Buford T. Justice from the movie, "Smokey & the Bandit") "Ooooof!"