Leased a car

[downwardspiral]

During the bankruptcy we gave one car back to the bank. I work from home so my husband used the other to go to work. We survived like that for 18 months. My husband got a new job that didn't have the flexible schedule he had, so we decided it was time to get another car.

We were nervous. We went to Hyundai because the cars weren't very expensive. I was upfront about the bankruptcy to the first salesperson who came to us. He immediately got us with the Fianance Manager. He told us that normallly you can't get a car loan until it's been at least 2 years since your bankruptcy. But they would try to help us.

So we didn't get approved to buy the car. But we got approved to lease it for 2 years. We got a 2010 Hyundai Elantra. Nothing fancy, and with payments at $145 it's easy to pay.

Since we didn't keep a mortgage this is the first installment loan we've had since the bankruptcy, so hopefully it will help raise our credit score even more.

Just wanted to share. I know when I was starting my bankruptcy hearing how it went for others always helped.

[ROB37LAW]

"He told us that normally you can't get a car loan until it's been at least 2 years since your bankruptcy" - That's completely false. That's true for an FHA mortage loan but not for a car. Did you shop other dealerships? I and many others on here had no problem financing cars right after discharge. I was approved by multiple lenders, granted the interest rates weren't that favorable. I settled on 16% with a local credit union. At least your car payment is manageable and you have reliable transportation. It sounds like the dealer took advantage of your situation and put you into a contract in which the dealer benefits financially. Buyer beware.

[Amy26]

Yes, that was indeed a lie. I got a car loan 3 days after my bankruptcy was discharged. I think getting a car loan with bankruptcy is actually one of the easiest things to get after discharge. The rates and terms of course may suck but you can generally get approved at a dealership days after discharge. If you're really happy with the deal then I am very happy for you. Did you have to put any money down on the lease?

If in fact you really did want to buy something and only took this deal because you thought you had to, when did you get it? If its been less than a day or two you may be able to take it back and get your money back etc and go somewhere else. Cause they did indeed tell you a falsehood. Being that you were discharged in 2008, you might be able to get a decent deal on interest rate/etc... mine was 17.9% with nothing down and as I said, days after discharge and a really crappy credit score at the time.

But, otherwise... it sounds like a decent deal.

[downwardspiral]

It's been over a month, so I can't return it. I applied for auto loans with Capital One and Roadloans, but with interest rates at 15% or higher it didn't seem worth it to me.

[Amy26]

Ah, no biggie then. As long as you're happy with it.

15% seems a bit high for the length from your discharge...but yea that's the ballpark for loans post discharge. Credit unions seem to give the best deals to BK people for car loans.

I imagine the rate on your lease is also a bit out of whack... did you put anything down on the lease?

[ROB37LAW]

I, too, went through bankruptcy but kept my leased car until the end. I was able to buy a car with no problem (except a little higher interest rate) after I turned in my leased vehicle. The key was that I kept the car payments current. Granted, I didn't have much of a choice which car I got, but I was able to purchase a car at the first dealership I went to. Just remember, don't go to several places and have them run credit checks on you. That only worsens your credit rating.

Multiple auto loan inquiries within a 14 day period only count as "one" inquiry in regard to your score. You're expected to rate shop. That's taken into acccount.