Trying to be WISE...

[miracle198]

I'm smack in the middle of my BK (have my 341 in 6 days!!). I drive a 1994 Nissan Altima with 136,000 miles on it. I commute about 80 miles a day to work. My car is worth anywhere from $500-$900 according to KBB. In the last 2 months I've had to put about $1250 into repairs, including almost $600 today after my car shut off in the middle of the road as I was driving last night.

I was hoping that my car would make it to the summer before having to purchase a new one, which would give me at least 4 months after my BK is discharged to rebuild. But it is KILLING me to have to keep putting money into this car! Not to mention just the uncertainty and unreliability of driving an old car.

What are your thoughts on purchasing a car (used of course, $10K or less) before discharge or soon thereafter? Please share adivce and experiences...Thanks!

[dasherkin]

im not discharged until the 27 i applies the only place that approved me was roadloans 12,000 credit with 2,000 down would cost me 10,000. so basically 20,000 for a 10,000 car needless to say im going to wait to build my credit then apply,why don't you get a new car 10,000 i was looking at nissan versa for 9,900

[RichM]

The trustee at my 341 came down pretty hard on people who bought new vehicles between filing and the 341. Not that there's anything illegal about it, but he did tell one woman that he was continuing the meeting in 30 days -- and to make sure she brings proof of every single expense she listed. His rationale was that her car payment could have been put to better use paying off her creditors.

As for after discharge, I'm inclined to agree with dasherkin: Why spend $10K on a used car when you can buy a cheap new one for about the same money? Nothing fancy, and probably won't impress the chicks (or guys), but at least you get a warranty.

-Rich

[miracle198]

Very true! I hadn't even thought about the cheap new cars that are out; I just sort of resigned myself to accepting that I won't have anything "new" or nice for a few years. I will definitely look into it. I'll just have to pray that my car holds up and doesn't suck anymore $$ out of me!! Thanks for the advice and info!

[dumpinmydebt]

I agree. There are some very affordable, brand new cars out. I think even Hyundai has one for like $11k. Nothing fancy, but great on gas mileage, plus they have a great warranty so you won't have to keep paying so stinkin much on repairs. Honestly, when we had crappy credit and applied for a loan they required us to get a newer (3 years old at the most) car, with low miles. The bank wouldn't finance anything else.

I'm more for waiting 4-6 months after discharge at least, and putting down a large downpayment, however, I understand the need for a reliable car. Just keep in mind, your interest rate will stink. I think if you show proof of the money you have had to put in repairs, the Trustee will understand.

[RichM]

I personally won't spend more than $2,000 - $3,000 on a used car, and will not take out a loan to buy one. By "used" I mean, well, used, with no warranty. I might finance a "certified pre-owned" car from a reputable dealer (yes, there are a few of them around) if it had a comprehensive warranty with a life as long as the note's.

I found my last two cars on Craigs List and paid for them in cash: an old Saturn for $600.00 that I drove for maybe six months, and an old Mercury Villager minivan for $1,100.00 that I'm still driving.

Now that my BK has been discharged, I'm debating whether to buy a slightly newer used car off Craig's List, a cheap new car, or a certified pre-owned car from a particular dealer whom I know for a fact is honest.

But I probably won't do anything until the minivan I'm driving needs a major repair or fails state inspection. Hey, it runs, so as long as it keeps running and doesn't require any major work, I'll keep putting my money aside.

Then again, I'm a middle-aged fart who feels like an old one, and I like the minivan because I can take all the youngsters in my life fishing at the same time. If I were a young buck again, I'd buy something sexy to pick up broads in.

-Rich

[LSUTiger32]

Well I am in the middle on this.

1. Never again put $600 into a $500 car. If the car repair is more than the car is worth, it's time for a new car. Hopefully now it can last you a few months to get you to a "newer" car.

2. That said, I do not believe you should be going back into debt before the BK is even finished. Learn the lesson! I haven't borrowed one cent since late 2008. Our credit cards were maxed out so we couldn't and then we filed in 2009. I know you need a car, but you do not need a $10K car. You can get something for $2-3K that will be reliable and that's something that you can save up fairly quickly for. Once you get there, keep saving and then keep moving up in car when necessary or when you have enough saved to make a nice jump. I got my $2,500 car in January of 2009 and it's still running perfectly today. I put $600 into it when I bought it for maintenance stuff and a new set of tires. Haven't spent a cent on it since except for gas and oil changes.

You can do this without going back into debt. Debt is not the answer!

[strummerfan]

Here's my unsolicited opinion. You can buy an almost mint 2000ish Volvo for $4000-$5000 parts are cheap and if you find the right repair shop cost of ownership is very reasonable, given the safety, luxury and driveabilty of the cars I would not substitute them for a newer car. 150,000 miles is not many miles for one on top of that they are better winter cars than most monster SUV's.

On top of all that a non-turbo model will average 28-30 mpg in the city and if you compare it the the cost of owning a Prius, its more economical to own the Volvo..plus you OWN it..no car payments involved.

[RichM]

Here's my unsolicited opinion. You can buy an almost mint 2000ish Volvo for $4000-$5000 parts are cheap and if you find the right repair shop cost of ownership is very reasonable, given the safety, luxury and driveabilty of the cars I would not substitute them for a newer car. 150,000 miles is not many miles for one on top of that they are better winter cars than most monster SUV's.

On top of all that a non-turbo model will average 28-30 mpg in the city and if you compare it the the cost of owning a Prius, its more economical to own the Volvo..plus you OWN it..no car payments involved.

Thanks! I've never had any experience with Volvos. Vuvuzelas, yes. But never Volvos. Now they're on my short list of cars to consider.

-Rich