I am self employed and need advice - keep car or get new one?

[ohbrother]

I need to make a decision about my car. As of right now, I have included it in the bankruptcy (no asset Ch 7) and said I was not intending to keep it. It has been tough getting a car loan (I am self employed, albeit for 20 years, but think that is the issue here). So I am considering three options:

Option 1 - accept a modification on my car to lower payments (but is this the same as affirming?) payments would be $280 instead of $350, but spend a lot on gas (it is a 05 Honda Pilot).

Option 2 - make a deal with the lender on my car and pay 3 past due payments and they will roll the rest back into the loan (am I going to have to sign anything? Does it matter if I sign it now or after discharge in two weeks?) This would get me current so I can ride it out, provided I don't have to sign anything that is binding, not sure if they will make me sign on this.

Option 3 - surrender the vehicle and get a used car through the dealer at 18% interest, already approved, though this is very high. Wondering how easy or hard it will be to refinance it, being self employed (income of 50K)? Would it make a difference to wait a few weeks and try again after discharge? Would I get a better interest rate a few weeks after discharge or should I wait a few months, not knowing if or when the bank will come take my car ( which I need for work).

Anyone else self empolyed that has gone before and can give advice? I really do not want to keep my car. I would rather get something with better gas mileage. I know not to affirm, but can I make a deal with option 1 or 2 and then ride it out and wait until my credit score is better so I can get the new car then? By signing an agreement like this, is this the same as re-affirming? My current credit score is high 400's and I am 2 weeks from discharge. Do I have to have my attorney make an ammendment that says I am now intending to keep the car or can I leave things the way they are and ride this out a bit?

Need advice fast. Oh one last note - I will be going to the beach right after my discharge. If I keep the car and ride it out (by getting current on the loan using option 2) can I take it to the beach for the week? I just don't want to do anything illegal! This is all so confusing!

[tikiman]

I'd love to hear anything on this subject. Husband and I are both self-employed. Converted our Chapter 13 to a 7--had the 341 meeting on June 22 and are awaiting discharge.

[humuhumu]

Buying a car at auction

I'd love to hear anything on this subject. Husband and I are both self-employed. Converted our Chapter 13 to a 7--had the 341 meeting on June 22 and are awaiting discharge.

So this is a real story, no BS:

Find the local auction house where your city/county/government vehicles are sold. I bought a 2004 Durango with 100k miles for $3600. Paid cash and was out of the door with tags, title and keys within 30 minutes. No embarrassment, no financing tricks, no haggling. Other cars available were newer Ford SUV hybrids, American sedans, etc. There was a lot to choose from. The 2007-2008 SUVs brought the most bidders so be sure to bring your KBB.

Rather than spend money on finance fees, get a used car and spend that money on painting it to look like new. My reasoning is that these cars are well-maintained, might have higher mileage, but if they check out mechanically...you win.

For the first time in 10+ years, I now have a car that is worth more than I paid. What a concept!!

Reading some of the posts on other threads...I cannot imagine just coming out of BK, to buy a slightly used or new car for $30k financed over (GASP!) 72 months at double digit rates!! To me, this is like starting the process of bankruptcy all over again.

PLEASE...look into the public auctions. In my humble opinion...the prices of cars these days are just another brainwash on the American public.

p.s. I filed ch 7 three (3!!!) days ago, and just today received an offer in the mail from an auto dealer. It is postdated the day I filed!

If your FICO is higher than your net worth, THAT is insanity.

[Cathold]

I like the auction idea. Can you tell me a legitimate sight for finding these in my area. There are a ton of auction stuff on line but I want to make sure its not a scam. How did you find your local auction locations?

[humuhumu]

Hello,

I hope I can help...I would google "restaurant auctions YOURTOWN, STATE" and "car auctions" in your area. For example, I am in denver and Roller Auction house handles restaurant auctions, state seizure auctions, bankruptcy auctions, city/county/state vehicles, etc.

the auction house is in an industrial part of town, so would not want to hang there at night, but during the auction is it mild enough.

What town are you located? I could look for you...

[Cathold]

I'm located in Manchester, New Hampshire. I do see a ton of auction sites on line - just don't want to end up at some shady used car dealership that calls themselves a car auction site:/

[humuhumu]

I did some looking myself and the legitimate places have cars from local governments, seizures, etc. Personally, i would not go anywhere near an auction house that handles insurance salvage (flooded, collision vehicles). Also, I have been to the dealer auctions, and they were so cutthroat there, I would not try it again. So, good luck!

In your area, I pulled up Interstate Auto Auctions

http://www.interstateautoauction.com

[Cathold]

Thanks! I appreciate it. I will take a look.

[Pandora]

you can also call your local police dept and find out when they auction off their vehicles They do it alllllll the time! You could get a nice V8 Crown Vic - loaded LOL

[bigtim6656]

I had a buddy find a newer police car for 4800 with 45000 miles. It had nothing wrong with it and he is loving it. He had a payment and paid it off and gave the car to his wife then got his police car. He now has a newer nice suv2008 I think. nice big payment and a low 22%.