Buying 2 cars

[ssboy81]

Can a person buy two cars after discharge

[mountanddo]

Probably need more information to answer this question. Do you mean are they allowed to or is it possible with your credit? I'm sure you are allowed any purchase but just be sure not to get yourself into a financial bind because if you filed Chapter 7 you have to wait 8 years to file again.

[ssboy81]

I know that. I just did not want the trustee to reopen my case cause I bought two cars. Could they do that?

[mountanddo]

Again, you need to provide a little more information. Were you discharged 2 days ago or 2 years ago?

[ssboy81]

A month ago

[HHM]

Yes, you can buy the car...

Whether you "should" is another question.

If you are talking about saddling yourself with 2 sub prime car payments (since your right out of BK), not exactly a smart move.

[ssboy81]

Is it a un smart move cause having to car loans n my name is not a good idea or the trustee would reopen my case? The only reson why cause my wife just got a new job far from the house she need a better car. And her credit is shot. And I also need a car. We can make both payments want b over 300 bucks

[mountanddo]

The trustee will not re-open your case. He's saying it is a bad idea to saddle yourself with debt right after BK. If you can afford the payment then you won't have any problems.

[HHM]

If you can afford the payment then you won't have any problems.

That is the real kicker...car payments should be no more than 5% of gross income, and that is assuming you have a car payment in the first place. It is actually quite easy to save up money and pay cash.

Also, "a better" car. Short of a "true" lemon, you always come out financially better by repairing older cars than buying a new one...but hey, no one wants to believe it, they just want a new car.

[mountanddo]

That leaves someone making $40/hour with a car payment of $160/month. Is this even realistic? How many people actually make $40/hour. With my income I should only pay $80/month for a car payment. I'd never be able to have a car payment. Actually if this formula was used for everyone on this forum I would suspect a lot people shouldn't be having the car payment that they have now.

Reality is that I will need a car before or at least right after my Chapter 13 is up. If I followed this I'd be screwed because I know I won't be making much more than $20/hour, if that. I am hoping to keep the car I have going at least 3 more years but that is iffy. It's 15 years old now. I'm pretty sure any money that I will save will go towards any emergency car repairs I'm sure to have in the next 3 years. Let's hope I can save enough to at least cover that. If I lived on a good bus route I wouldn't worry so much but my bus only runs weekdays, 3 times in the morning and 3 times at night. Any suggestions?

[HHM]

First, your math is wrong, if a person were making $40 per hour with a full time job, that would yield a car payment of $346.66 per month.

It's all about financial balance, what are you giving up, financially to have that car.
This is the phrase I wish people would remember...

"Give up want you "want" today, so you can afford what you "need" later"
The more compelling version is, "Buy what you need now, so you can afford what you want later" But that version is a bit more unrealistic; most people are destined for a social security, poverty level existence because they are overspending during their working years.

Keep in mind, transportation expense is more than just car payment, you will eat up another 10% of your gross income in the operating costs (gas, insurance, repairs etc). By keeping the car payment at 5%, you keep your transportation cost under 15% (the average in the US is near 30%, which is way too much). That expense is only second behind housing in most people's budget. That is a huge expenditure. But, the irony is that it is also the expenditure that is MOST in one's controls. There are all sorts of ways to cut down on transportation expenses
-pay cash for cars
-do your own maintance (although, recently I have found a place that does oil changes for cheaper than I can buy the oil and filter on my own).
-live closer to your work
-commute by other means, (bike, walk).

Also, how hard or unrealistic is it to save up 4-6K to pay cash for car that will "easily" run for 4+ years, remember, the NEED is transportation, that NEED does not need to be met with a $28,000 car.

Suburban living and car culture of lulled us into the idea that car payments are a reality, just like taxes and student loans, that is not the case.

(rant over, now go on and enjoy your new(er) car; because nothing I say, or anyone will say that will cure new car frenzy).