Got Financed w/Honda 2 days after Discharge

[jribe]

Hi Everyone,
So it is possible!

I was able to get a loan with Honda Financial (albeit at 13.99%) after being discharged for less than 2 days.

It was a bit of a hassle- one dealership declined me, before i found another local one that said "they work with BK, Challenged credit, etc" on their website.

I got a good deal on a new car; and have a 7 year, 100,000 mile warranty (extra $1500 bucks) bu totally worth it!

Also- my fico was only 500 according to them.

[Flamingo]

While it's good that you were able to get financing, your deal is not that good as 13.99% is usually around the high rate given to folks right out of BK or with really bad credit (can also go way higher) and you had to pay extra for a warranty which should have been included with the vehicle to begin with as most 100,000 mile warranties now are. So you financed a new car, high interest rate and included $1500 for the warranty and you will be paying the 13.99% on the warranty also for the duration of the loan. You owed way more than the vehicle is worth as soon as you left the lot with the vehicle immediate depreciation and the extra warranty. You don't state the length of your loan nor the price of the car...

[LimpDisc]

Happy to hear about your financing success, but I agree with Flamingo about the warranty. Why would a car dealer need to sell a extended warranty on a new car? Are they unsure of the product they sell?

Think about how much that warranty actually costs when financed at 13.99% over the life of the loan.

$2093 @ 5 years
$2224 @ 6 years
$2360 @ 7 years

[jribe]

i paid the warranty cash. The reason i opted for the extra warranty is that i wil be keeping this car for over 100,000 miles, and any breakdowns are covered by the warranty. If i was going to only keep it 3 years- i wouldn't have gotten it.

- I don't appreciate being chastized for buying a car. I know my own situation better- and based on my miles driven, length of ownership and as well as the cost of the comparable car used- this was the better deal.


I also put 35% of the car's price down - and will have it paid off within 2 years.

[LimpDisc]

i paid the warranty cash. The reason i opted for the extra warranty is that i wil be keeping this car for over 100,000 miles, and any breakdowns are covered by the warranty. If i was going to only keep it 3 years- i wouldn't have gotten it.

- I don't appreciate being chastized for buying a car. I know my own situation better- and based on my miles driven, length of ownership and as well as the cost of the comparable car used- this was the better deal.


I also put 35% of the car's price down - and will have it paid off within 2 years.

I don't think you were "chastized" for buying a new car. I said that I was happy for you and your financing success. I just don't believe in buying an extended warranty for anything.

If the extended warranty gives you peace of mind then you did the right thing for you.

And Congrats on being able to put down 35% of the car!!! It's awesome that you will be able to pay it off in 2 years.

[tigergem]

Well since you didn't give all the facts, your OP sounded like you dove head first right into a mountain of debt as soon as you possibly could after discharge, just because you could.

I have an extended warranty that is an absolute godsend. In most cases they aren't worth it, but sometimes they are. It just depends.

I had a $3000 sudden emergency repair that was covered for me with only $250 out of pocket and my extended warranty coverage costs me about $86/month. It's a separate policy, not financed. So yeah it is worth it to me.

[mikemike]

seems good to me...need to start somewhere. also what was the price on the car? and your monthly payments? i know u said u put 35% down how much was that exactly? im planning on getting a honda as well so some info will be greatly appreciated