Has anyone had any luck recently with purchasing/being approved through a GM dealership for a loan? Just curious--we have been driving a borrowed car through the bk process and will need to purchase soon.
Thanks.
Thanks.
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I hear ford has been bk friendly not sure about gm but i believe they might be as well...keep us posted on the process as i am looking as well but wont be getting it until another 3 months or so -
As an associate of a GM dealership (not in finance), I am not sure if they are friendly or not. GM just purchased Americredit, so I don't know if that will help any or not.
So much with auto lending depends on the credit score that they use. It is a score that is focused on your performance with auto loans. You can have credit cards written off left and right, but if you have always been current on auto loans, with no issues, you are likely to be able to finance a car, even if you have had bankruptcy. If you BK'd a vehicle, or have a repossession, or multiple late payments on auto loans, you will have a harder time.
Most dealership finance departments have lenders who specialize in "special credit." Prepare for high down payments, high interest rates, and the like, if you need them.Filed 8/08 - Discharged 11/08! Not tracking FICO.
Pre-Bankruptcy Net Worth: -$72,000... Today's net worth: $142,000.
If your FICO score just went higher than your net worth, and you are happy about this, you might have a financial problem!Comment
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Thank you for your replies. I just wanted to report back on how it went at the dealership. Please, I know from reading other threads that many think that purchasing a new car at this point is unadvisable, but we are very comfortable with our decision and situation at this point. So, at risk of being judged, I want to share our experience in case it might help someone else.
We did apply at the Chevy Dealership for $25,000. With $5,000 down payment, we were approved through Americredit at 11% for a 60 month loan. FYI--We are one week past discharge. GMAC and Wells Fargo did decline us first.Comment
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Can I ask if you had a repossession or included an auto loan in your BK? Also do you know what your credit scores were? And do you know if they weighed more on your scores or your employment and income? I too will be looking to attain a loan shortly after discharge. Thanks.Comment
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Our scores range from 580 - 630 for my husband and mine are about the same at 587-610. We have not had any repos and had good payment history in the past with Chrysler. I had turned in a lease car right before filing and have been driving a friend's car for the past six months. My husband has a company car, so we don't have any other recent auto loans.
I think the larger down payment definitely worked in our favor and my husband's work history/income. Obviously, it didn't make any difference to GMAC, but even with Wells Fargo (although they inevitably declined us), they did call us and ask about "our story." So, it appeared that at least the sub-prime lenders may be looking at the bigger picture.
Of course, we will try to refinance it with a credit union as soon as we can establish some good credit history to reduce the rate, but we are happy with the rate that Americredit gave us today considering the situation.
I hope everything works out well for you, too. Good luck.Comment
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I applied also one week past discharge and was able to get a loan.
Was declined by Capital One, my bank,my credit union, but approved by Wells Fargo and Santander.
Interest is a little high at 16%, and a max loan of 27,000 and told them I could put 5k down. Will probably go with Santander at a Dodge dealer but don't intend to spend that much.
Credit scores were between 580 and 620, with a repo (IIB)Comment
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Still deciding what to do.Originally posted by mikemike View Post
I do know though that they would be about 580 if I used the max, at 72 mths.
Since I am debt free now, the payment would be ok, but really want to go for half that.Comment
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