Approval 1 month post discharge.

[berrymom35]

Just wanted to put this out there. Bought a car yesterday. A 2009 Chevy Impala with 20,000 miles...no down payment and financed with 16% interest from Americredit through a local Ford dealership. We expected the high interest rate and we went in there saying we wanted no down payment and payments at $380 or lower....we got payments of $375 and are on our way to re-establishing our credit. We don't want credit cards and will never get another one.....so we figure this was the best way to go about it. Also my 10 year old van's transmission was going out and it needed tires and the front was caved in during a hit and run in a store parking lot last month...it needed $2000 worth of work and we just couldn't see putting that much into that old of a vehicle with 162,000 miles! I was nervous about getting approved at all, but it was easy. We had to provide check stubs and proof of insurance, more than someone with great credit, but overall it was a good experience.

[Michigan1951]

Just wanted to put this out there. Bought a car yesterday. A 2009 Chevy Impala with 20,000 miles...no down payment and financed with 16% interest from Americredit through a local Ford dealership. We expected the high interest rate and we went in there saying we wanted no down payment and payments at $380 or lower....we got payments of $375 and are on our way to re-establishing our credit. We don't want credit cards and will never get another one.....so we figure this was the best way to go about it. Also my 10 year old van's transmission was going out and it needed tires and the front was caved in during a hit and run in a store parking lot last month...it needed $2000 worth of work and we just couldn't see putting that much into that old of a vehicle with 162,000 miles! I was nervous about getting approved at all, but it was easy. We had to provide check stubs and proof of insurance, more than someone with great credit, but overall it was a good experience.

That is great news, Berrymom35!! I am just behind you here on a discharge, hopefully.
We are attempting to keep our two fairly new cars and keep the low interest rates, but at least now I know there is hope out there to get another car, if turns the other way for us..................time will tell on 12/14.

[mom2three09]

Congrats!

We, too, are 1 month post discharge & were also just approved thru Americredit but at 18% interest We decided not to take the loan though for several reasons 1.) I currently have a 2006 Chrysler T&C minivan w/50K miles on it that a friend of ours who owns a used car lot financed us for 3 yrs @ 10% interest (so we don't really NEED a diff vehicle right now 2.) We didn't want to finance a 2004 for 6 yrs @ 18% interest -- not only because of the age of the vehicle but also how quickly we woould end up upside down due to the high interest rate 3.) We talked to our friend who owns the used car lot yesterday & he ran our app thru the local credit union and it would have been approved @ 8% interest had we been 90 days post discharge so ofcourse we decided at that moment not to go with Americredit.

Now, had we really needed something to drive right now then we would have likely taken the Americredit high interest loan and just paid more towards the principle every month. Thankfully we didn't have to go that route tho

Good luck to you... we all need to start somewhere in this rebuilding process... like you, we aren't getting ourselves back into the CC thing...we may get one secured card thru our bank purely to rebuild our credit but that's it... honestly, if we didn't want to sell our current home in the very near future and purchase another then I don't think we would even worry about rebuilding just yet

[bigtim6656]

congrats i file chapter 7 this summer with 30k+ in debt. My credit is like 400 something. I went to trade my truck in even money for a car and end up getting a loan for 10k on a jeep wrangler. I figured i was getting a nice car out of it plus the loan will help me post discharge. NO begging for a loan. Plus being a 24 year old college student it would be hard. Those dealers work the banks good. My mom and dad got turned down at the same place on there own. Better credit better income. Guess they like the dealer i used. I almost bought a 2008 impala 25k white soft clothes seats felt like a costly bath towel. But the wrangler was a calling

[dscurlock]

I find it funny that people coming out of BK jump right back out getting a 20k vehicle or something...you know if you are ever in a tight spot for a vehicle, you do not have to leap to the most expensive source right off the bat..you can get some very good deals on vehicles on craigslist.. I got a 1998 jeep in great condition for $3000 - I also got
a grand caravan for $2,000 - again, runs great, and great condition..I do not understand why people are coming out of BK just to land back into a 20k or more vehicle...I would have to bet at least 98% of all vehicles are used for work...so why spend a lot of money just to go to work, letting the expensive car sit there all day..then go home...does that make since?

[Flamingo]

I find it funny that people coming out of BK jump right back out getting a 20k vehicle or something...you know if you are ever in a tight spot for a vehicle, you do not have to leap to the most expensive source right off the bat..you can get some very good deals on vehicles on craigslist.. I got a 1998 jeep in great condition for $3000 - I also got
a grand caravan for $2,000 - again, runs great, and great condition..I do not understand why people are coming out of BK just to land back into a 20k or more vehicle...I would have to bet at least 98% of all vehicles are used for work...so why spend a lot of money just to go to work, letting the expensive car sit there all day..then go home...does that make since?

Some personal decisions are good and some are bad after discharge. A good portion of those folks going back into debt shortly after discharge will just find themselves back posting on BK forums in another 8 years wondering what happened.

[bigtim6656]

I think for some it might be the right choice. My debt has nothing to do with cars or loans. It has to do with a failed business mainly due to the credit card charging company and the bank i used both screwed me over and cost me my business. i was doing 20k to 40k in the summer. and 15 to 25 k in the winter working on jetskis. About 50% of that was in my pocket until some dam **** at the bank cost me 4800 on a check they did not check that bounced. I got a 21% loan on a 05 wrangler. I did it for the 4x4 and to help build my credit i will be filing this April or early may. I figure having the loan now will help me after discharge.

congrats i file chapter 7 this summer with 30k+ in debt. My credit is like 400 something. I went to trade my truck in even money for a car and end up getting a loan for 10k on a jeep wrangler. I figured i was getting a nice car out of it plus the loan will help me post discharge. NO begging for a loan. Plus being a 24 year old college student it would be hard. Those dealers work the banks good. My mom and dad got turned down at the same place on there own. Better credit better income. Guess they like the dealer i used. I almost bought a 2008 impala 25k white soft clothes seats felt like a costly bath towel. But the wrangler was a calling

[Brendon]

SURPRISE!!! Any car loan is debt. Debt is what put you in bk in the first place. There are very, very few people that NEED a new car and taking on a debt of convenience after a bk is just ludicrous. I'm sure I will get blasted for saying this, but C'mon and get in the game and starting making responsible and mature decisions.

[bigtim6656]

I will blast you a little. Getting aloan you can pay is a mature decision for some. Buying a old junk car that will not make it 100 miles might not be. I just got a loan it will be paid on time or ahead every month. If I loose my income we are all screwed. I see no reason to get a 30k loan when a 10k loan would do. Who needs a perfect brand new suv to get to and from work. My loan was 10k I would not think of a 30k loan like some. Though I did it more to help my credit then to get a car as I had a truck paid for that I traded in.

SURPRISE!!! Any car loan is debt. Debt is what put you in bk in the first place. There are very, very few people that NEED a new car and taking on a debt of convenience after a bk is just ludicrous. I'm sure I will get blasted for saying this, but C'mon and get in the game and starting making responsible and mature decisions.

[berrymom35]

I find it funny that people coming out of BK jump right back out getting a 20k vehicle or something...you know if you are ever in a tight spot for a vehicle, you do not have to leap to the most expensive source right off the bat..you can get some very good deals on vehicles on craigslist.. I got a 1998 jeep in great condition for $3000 - I also got
a grand caravan for $2,000 - again, runs great, and great condition..I do not understand why people are coming out of BK just to land back into a 20k or more vehicle...I would have to bet at least 98% of all vehicles are used for work...so why spend a lot of money just to go to work, letting the expensive car sit there all day..then go home...does that make since?

Not that I feel the need to explain myself, but......the car we bought was no where near $20,000, nor is it brand new. We got a programed car with 20,000 miles at a reasonable price with an affordable payment. This car replaced the vehicle that was falling apart and not worth repairing. I agree with the poster who couldn't understand buying a car that will last for a few thousand more miles before needing repairs. This works for us and our situation and we feel it will help re-establish our credit for our future. This board is about buying a car post discharge and I thought it would be helpful to post my experience. If you are looking to pick a fight go to the chapter 7 board...they love drama over there!

[Brendon]

I will blast you a little. Getting aloan you can pay is a mature decision for some. Buying a old junk car that will not make it 100 miles might not be. I just got a loan it will be paid on time or ahead every month. If I loose my income we are all screwed. I see no reason to get a 30k loan when a 10k loan would do. Who needs a perfect brand new suv to get to and from work. My loan was 10k I would not think of a 30k loan like some. Though I did it more to help my credit then to get a car as I had a truck paid for that I traded in.

I'm not picking a fight, just offering my opinion and it's worth what you pay for it.

but you shouldn't be SCREWED if you lose your income. It's a proven fact that every car reposessed has a loan on it. If you had a paid for car, or an emergency fund you would not be SCREWED. Part of maturity is learning to delay pleasure and taking a loan for 16% (or 21% ) is just not worth the worry or the problems associated with it. I can assure you, the rebuilding of your credit is worth far less than the interest you will pay every month for that car!

Do the math. $10k borrowed at 8% interest you will pay about $2100 in interest over the life of the loan. $10k borrowed at 21% will cost you $6200 over the life of the loan.

Again, I just offer my opinion for my situation. If you can live with that than you shouldn't listen to me.

[bigtim6656]

I think you are right. And you will blast me for this. I had a 2007 Chevy 1/2 paid for. traded it for my jeep with about 10k diff. At 21% I did this to fix my credit and get a vehicle that fits my needs I had another truck and not need the truck. I need the better space and 4x4. My hope is to refi after bk or pay it down to a few thousand and not be paying thousands in interest. I think paying 6k in interest would be stupid. I do not plan on it. It depends on alot of things. My brother bought a 2k car it burns oil and tans fuild. He totaled it the day he payed it off a month after he had gotten it. Ate 1k on the pay off and deductible. If my jeep wrecks I would come out about even due to the fact I am ahead on it. Though if I run the loan out I will lose my equity in interest.I would not be total screwed if I lost my income but my income Is SSDI and V.A education benefits from my dad being a disabled vet. If I loose that the country has finialy hit rock bottom and file chapter 7 like the rest of us. My plan is file in June be done in aug. and use my fall student loan to pay it down. Hey they told me I could use the loan for transportation.

I'm not picking a fight, just offering my opinion and it's worth what you pay for it.

but you shouldn't be SCREWED if you lose your income. It's a proven fact that every car reposessed has a loan on it. If you had a paid for car, or an emergency fund you would not be SCREWED. Part of maturity is learning to delay pleasure and taking a loan for 16% (or 21% ) is just not worth the worry or the problems associated with it. I can assure you, the rebuilding of your credit is worth far less than the interest you will pay every month for that car!

Do the math. $10k borrowed at 8% interest you will pay about $2100 in interest over the life of the loan. $10k borrowed at 21% will cost you $6200 over the life of the loan.

Again, I just offer my opinion for my situation. If you can live with that than you shouldn't listen to me.

[Brendon]

BigTim-

Best of luck to you and I wish you a speedy recovery through this process. Everyone's situation is different and when I offer my opinion I can't possibly understand everyone's situation. I just hope that others can learn from my mistakes. Good Luck!

[aces67]

Congrats to you! We bought a used 2008 Grand Caravan about 6 weeks ago at 12.75% with Chase.

I understand what people say about getting back into debt but for us it was the right choice. We only gave 13K for it and we have 2 small kids with another on the way so we needed all the space we can get.

We thought about buying something for $2 or $3K and for dh we did but for me we live in the country and dh really didn't feel comfortable with me driving so far every day with the kids in a clunker you know?

[Michigan1951]

Okay, I said in an earlier post here that we have chosen to reaff two newer cars instead of letting them go back. Yes, most do bk to attempt to clear ALL debt. Not in our case. We have two newer cars with low interest rates, and not behind on them. Why in the world would we let them go and sign on for new wheels with outrageous interest rates if we can avoid that. We all need vehicles before, during, and after bk. It was CC debt that was killing us. It may not work for some, but for us it made complete sense.