Best Dealership and Bank Ever

[calco86]

Okay so our truck is dieing and I have been shopping around for a new car. We got our bankruptcy discharge on 4/19/2011 and our scores took a huge hit. Two days after I got a $1000 Secured Loan with my bank and a $1000 Secured Credit Card to rebuild.

Today there was VIP event going at one of the dealerships. I stopped in and saw a 2010 Jeep Wrangler Sport 4dr with 5K miles on it, loved it until I saw the price. 28K. I have been declined at a couple different banks. So I applied, thinking I would be declined. The business Manager said he would call me back today. Scores today 535, 540

RING RING... Hey Mr. CALCO are you sitting down - thinking I was declined, CONGRATS got you approved. $2k down on 30K Loan...

Terms:
66 Months
at 11.45%,
I also got the warranty, GAP Insurance
Monthly Payment 585.00

Could not believe it!

Now I am building Credit Again!

[HHM]

Let me ask you this...what is the percent of your net worth the purchase price of this vehicle makes up.

For example, if you had $280,000 net worth, the vehicle purchase price is 10% of your NET worth.

I hate to piss on your parade, but I think this was a dumb purchase. It is a lousy deal no matter how you slice it. You have just saddled yourself with tremendous debt, on a depreciating asset, with a lousy deal.

[iswmle]

Calco, did you seal this deal? If you did not, I do hope you would rethink it. 11% interest for 5 1/2 years is a LOT of interest to pay! And that is not including the cost of carrying full coverage on a financed Jeep as well as the cost of fuel. Just because someone approves you does not make it a good deal. Car fever clouds the mind, but please step back and review your financial options before making hasty decisions.

[msm859]

Let me ask you this...what is this percent of your net worth the purchase price of this vehicle makes up.

For example, if you had $280,000 net worth, the vehicle purchase price is 10% of your NET worth.

I hate to piss on your parade, but I think this was a dumb purchase. It is a lousy deal no matter how you slice it.

Okay HHM I perhaps agree with your conclusion, however, I would look at other reasons why - high interest rate, long note, extra warranty and gap insurance. Besides percentage of net worth I would also want to know what percentage of net income is the car payment. I suspect most people coming out of bankruptcy have a modest if any net worth. So my question would be what criteria do you use to determine an appropriate amount to spend on a vehicle?

[747LUVR]

In HHM's defense, the logic is, ok, 'you JUST got out of being under so much debt, why would you go and buy a $28k car'? If you make even $56k a year, thats 6 months of wages, to each his own but...the last thing i'm doing now that we just got out of bk is going and being on the string/hook for so much. $585 a month buys a decent used car in 12 months....but we live in a free society.

[Kuya]

Calco86,

Let me be the FIRST person to actually congratulate you (if you did go through and make the purchase). The only person who knows and understands your current financial situation is you.

For these others to jump in and scold you and put you down is WRONG. Your forum post was not asking for permission from anyone.

I really like sharing information on this site . . but I am getting so tired and disappointed in all the "hating" and "judging" It is really uncalled for. Suddenly people who finished BK become dictators and experts . . Hog Wash!

Me for example: I make a good living . . . above the median. I have no bills except paying half the rent ($500/month) . . leaving Thousands of dollars spendable each month. So yeah . I could afford your payment and would not expect anyone to jump on my back if I made that decision.

Realistically 11% is to be expected after BK. You are not magically going to get a great rate with bad credit. I recently applied for an auto loan and was offered almost 15% from a bank called Santander. And myFico was over 700! It's hard after BK. Luckily, my local credit union agreed to reconsider my loan (they initially declined me) and I talked them into approving at 5.74%. . . but that was not easy.

Best advice I can give is to stick to your budget, whatever that is. Only you know if this payment is ok or not. And certainly, look into refinancing in 8 or 12 months . . you can probably lower that payment by about $120 month or more.

If you bought the car . . .congrats. Ignore the BS.

[calco86]

Calco86,

Let me be the FIRST person to actually congratulate you (if you did go through and make the purchase). The only person who knows and understands your current financial situation is you.

For these others to jump in and scold you and put you down is WRONG. Your forum post was not asking for permission from anyone.

I really like sharing information on this site . . but I am getting so tired and disappointed in all the "hating" and "judging" It is really uncalled for. Suddenly people who finished BK become dictators and experts . . Hog Wash!

Me for example: I make a good living . . . above the median. I have no bills except paying half the rent ($500/month) . . leaving Thousands of dollars spendable each month. So yeah . I could afford your payment and would not expect anyone to jump on my back if I made that decision.

Realistically 11% is to be expected after BK. You are not magically going to get a great rate with bad credit. I recently applied for an auto loan and was offered almost 15% from a bank called Santander. And myFico was over 700! It's hard after BK. Luckily, my local credit union agreed to reconsider my loan (they initially declined me) and I talked them into approving at 5.74%. . . but that was not easy.

Best advice I can give is to stick to your budget, whatever that is. Only you know if this payment is ok or not. And certainly, look into refinancing in 8 or 12 months . . you can probably lower that payment by about $120 month or more.

If you bought the car . . .congrats. Ignore the BS.

Thank you so much, I make great money, I own a business, work and also get a disability payment from the government, so the payment isn't a big deal. I was just excited to get approved for that much with my low score. I am looking forward to rebuilding credit. I am young and my credit got screwed from being in the military and a divorce. THANK YOU ALL FOR THE RUDE AND DISCOURAGING COMMENTS!

[rustymich]

I agree

In HHM's defense, the logic is, ok, 'you JUST got out of being under so much debt, why would you go and buy a $28k car'? If you make even $56k a year, thats 6 months of wages, to each his own but...the last thing i'm doing now that we just got out of bk is going and being on the string/hook for so much. $585 a month buys a decent used car in 12 months....but we live in a free society.

[IBroke]

11% interest for 5 1/2 years is a LOT of interest to pay!

...unless the OP refinances at a lower rate which is not unlikely.

[msm859]

Thank you so much, I make great money, I own a business, work and also get a disability payment from the government, so the payment isn't a big deal. I was just excited to get approved for that much with my low score. I am looking forward to rebuilding credit. I am young and my credit got screwed from being in the military and a divorce. THANK YOU ALL FOR THE RUDE AND DISCOURAGING COMMENTS!

One of the purposes of this forum is education. I don't think any one was trying to be "rude or discouraging". Buying a car is often times a very emotional act despite being the second largest purchase made. It should be a purely business decision - as should filing for bankruptcy. You started the thread "best dealership and bank ever". Some of us who have no emotion in this and look more objectively do not see this as the best deal - dealership or bank. Many people (Not saying you) got into a credit mess resulting in bk because of a string of financial mistakes i.e. buying more things than they can afford or getting poor deals. Many would argue it would be better to buy a used car until your credit gets better and you can get a decent interest rate. If you keep your loan to term you will pay $10,000 + in interest. After going through the bankruptcy process many of us here think we should perhaps be a little more conservative in our financial future. Yes, everyone is free to do what they want. But how many people use to rack up their credit cards, get a home loan pay them all off and then in no time have them racked up again. You say you make great money and the payment is no big deal yet you/they extended the term to 66 months only to lower the payments. You admitted you were "excited" i.e. emotional about the transaction which is a bad way to enter into a business transaction. You say you are young - then take this as constructive criticism/education. Car dealerships are full of sharks and most people are minnows -- they are wrapped up in emotion and don't even realize when they have been swallowed whole.

[Kuya]

I don't think any one was trying to be "rude or discouraging".

I beg to differ . . . . How about THIS quote from a Site Moderator, none the less:

"I hate to piss on your parade, but I think this was a dumb purchase."

It's stuff like that . . . from the moderators and "wizards" that take away from the integrity and purpose of this site.

Furthermore . . The Site Moderators and Wizards designated this Forum Area to be called : "Buying a Car after BK" so that we can share our experience with others in the same situation. This was not labeled "Let's jump on everyone who buys a car after BK".

If you are going to talk down to everyone who buys a car and shares their experience - then nobody will share.

The Thread is called "Best Bank and Best Dealer" . . Maybe that is not 100% true - However 11% after BK is not that bad. People on here have purchased cars as high as 15-20% !!!! Financing a car after BK is not easy. I know. Instead of scolding and calling it a dumb purchase, let's help him with good advice . . . such as goals of refinancing to get out from that high interest, and making extra payments every time he can to pay off sooner and pay less interest.

msm859, you make some very valid points and I don't debate them. It's just that this Forum area "Buying a Car after BK" seems like it should be used for just that. People sharing their recent car purchase experience . . . after discharge.

[747LUVR]

Calco86.....however I do wish you the best, and I do hope you enjoy your new set of wheels. I'm not judging you..or anyone...and after having gone thru the experience also, it is nice to 'treat oneself', just be careful out there, and be discliplined ;)

[locolady]

I beg to differ . . . . How about THIS quote from a Site Moderator, none the less:

"I hate to piss on your parade, but I think this was a dumb purchase."

Hey add me to the dumb purchase group. I also not need put wanted a new car. So I got a brand new (3 miles) car. My loan term are 10% on $30k x 60 months $640.30 monthly Cap 1 lender. But you know what I'm will be paying bi-weekly plus $100 extra each time. This way instead of $8,401 in interest I'll pay $5,400 with the affected Apr of 6.78% paying it off 3 years 4 month.
I really doing because my plans are to trading it at 30 month for the car I really want to buy this time. My next car will cost $55k maybe even more. Hopefully my interest rate will be nil or close to that after faithfully paying this loan. The advice on here is great for information and education for filers and post discharge people. But in the end most will do what they want to bankruptcy or not.

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[daxtell]

my bankruptcy hit me hard during my mid life crisis.. lost my high salary job, nice home and beautiful suv and when i had to discharge all that credit card debt and saw all the figures in the end i was devastated. yes for many years i enjoyed good credit, high salary, nice things ... but i lived beyond my means. during the year of filing and judgments and driving a run down 20 year old jeep and worrying when my bankruptcy was discharged i was grateful to get a cap one auto loan. but i did not run out and use it all up. i searched for months and settled on a nice used 9000 dollar car. the loan is far less than what they offered me. the car is beautiful to me. and today i do not make very much money at all. i rent and i will work overtime to try and pay that loan off as quickly as possible. i was truly embarresed by the whole situation of having to discharge that much money to people. and when i signed the loan for this car i took the contract very seriously. the economy sucks. millions of people are without jobs and homes. my frame of mind today is far different than what it used to be. i was at an outlet mall on sunday watching people pay hundreds of dollars for a coach purse that i used to do as well!! i looked at those people and thought to myself gosh, i cannot believe i ever thought i could afford a 100 dollar purse. today i have a 10 one!

[sequinfamily]

Congrats on the new car. I'd work really hard and make double payments on it till you can get it refinanced though. I just bought a 2011 Aveo at 19% interest, made at least double payments every month and after only 3 months I was refinanced by a local credit union for 4.5%. My payment went from 380 to about 250 a month. I'm still making 800/month payments though.