Recent Dealer offers for a new/used car

[wisecrow]

My BK will be discharged in a few weeks. I just got offers from 2 Toyota dealers in town, both guaranteeing financing with proof of income. I've been driving a clunker 2001 Mitsubishi (also paying $250/month for it) just to get back and forth to work. Spoke to a guy today at one of the dealerships. He explained that they have a special deal with Prestige Finance to finance BK's. Yes the interest rate is higher (not sure what yet), but he claims he can easily get me into an '09 Corolla for a little more (maybe $100) than I'm paying now (to a roadside car lot - no positive credit bureau reporting). It seems that this is a good way to get a decent car and to start rebuilding credit. Thoughts?

[Kuya]

My personal recommendation: hold off for just a few more months.

I am in the same situation. At the end of my Chapter 13 . . .been a long road, and had the same car. It finally died. I have had no car since November. Yay ME! lol. I have tried and researched almost every angle possible in order to get financed. I have worked miracles on my Credit score and actually have a Fico Score of 684, which is damn good considering my bk is still open.

After months and months of research and contacting dealers and banks and credit unions . .. . I have made the decision to just be patient for a few more weeks. On May 12th, my BK has it's discharge hearing, and then I will manually ping the big 3 (Experian, Transunion, and EQ) to pick up the closure. I have found that once ALL 3 have registered the bk as closed, it will be much easier (but still no walk in the park) to gain financing, but more important . . . the rate I can get today compared to the rate I can get AFTER discharge will literally save me thousands of dollars.

I will wait the 3 or 4 more weeks and save the money. You may think "but yeah, you only have a few more weeks to go " . . but remember I have not had a car since November . . . been juggling rides, buses, etc for months. I hate it and I am going insane . . but it just makes sense to sit tight.

With your BK still open, you will have one chance and that is with the Dealer through Prestige. You will have no bargaining power and you will have to take or leave whatever rate they offer . . . could be good . . or it could be over 14% which is silliness. Once your bk is discharged, you will be able to go to places like Capital One and get pre-arrpoved .. . maybe for 8 to 10%, then you take that to the dealer and say that you are pre-approved, and that you will accept dealer financing IF they can beat it (and most likely they will because they make money off the back end of financing if you go through them). Now you have bargaining power to ensure you get the best rate possible . ..and,I kid you not . . this could be the difference of Thousands of dollars

Just some thought. Good luck with whatever you opt to try.

[BKIN2010]

My BK was closed a few weeks ago. applied for cap 1 blank check and was approved at 12% for a new car ;((

[Kuya]

My BK was closed a few weeks ago. applied for cap 1 blank check and was approved at 12% for a new car ;((

IF you don't mind . . what was your credit score? Do you know?

[BKIN2010]

High 500's none in the 600 yet. Cap checks all 3 bureaus... i think

[Kuya]

Yes, Cap 1 checks all 3. Not sure which one they actually use to make their decision but they do pull all 3. I have seen people here get anywhere from 5.4 to 16% from Cap1 . . . depending on time from BK Discharge and score.

My discharge will happen this month, and I currently have Fico scores ranging from 634 - 701, and I am hoping and praying for something under 8%, as I have no car (died in November . . . ) and have no choice but to pay whatever rate I am given.

You might find a better rate via the Dealer . . . They should, at the very least be able to beat the Cap1 rate . . . and often times if you have a significant amount of cash to put down, they can leverage a better rate. Good luck!

[BKIN2010]

I applied at two local dealers also and I am waiting to hear back. i told one of the dealers that I have the capital one offer so hopefully they try to beat it. Good luck to you too.

[dneil]

12% !!!!! Robbery! What a shame you weren't offered a better deal! I am sorry.

[BKIN2010]

12% !!!!! Robbery! What a shame you weren't offered a better deal! I am sorry.

12% i quite high...have u filed? discharged? applied for a loan? what was the rate?

[dneil]

I filed last July (2010) 401 hearing was in September and we were discharged Jan 4, 2011 and the case was closed less than a month later. I was able to get a Capitol One card with no annual fee. $2,000.00 credit limit but interest rate is 22.9% (ouch). The first 6 months is zero interest. I just pay the card off every month. They also offered the blank check for a new/used car, but at this point I am not interested in even applying. My car is a 1999 Jeep Grand Cherokee and luckily my husband is a mechanic and can fix any issues and does proper maintenance. I would love to have a new car, or something newer, but it isn't logical. Instead of taking on a new car loan and adding cost to auto insurance, I am paying 100 extra on our second mortgage that was basically set up by a loan shark.
My second mortgage is 200 dollars a month for 15 years. It was for 22,500 and after I pay for 15 years I still owe a baloon of 19,000.00. I was notified of this when I got to the title companies office to close on the house. My purchase agreement was to expire that day and they knew it. I didn't have a choice but to sign because I had done a 5 thousand dollar deposit to the owner who had paid cash for the home I was buying. She also had a back up buyer if I didn't sign that day. I had excellent credit when I bought this house, so they didn't do this because of my credit. It was a sham. They split the mortgage into 2 loans and set the second one up to just about an interest only loan. I think 11 dollars goes toward my principle each month. It is probably the one thing that remains to be a lead anchor on my back. I will never again let myself be hustled. Lovely banks!