Has anyone had any experience getting financed with KIA post BK?

[Helpful1]

We are almost 3 years from discharge (October) with credit scores in the upper 600's and did not include autos in the CH7 BK as they were both paid for but one is 13 years old and has become an unreliable money pit so I have been house bound with the kiddo's all summer while my husband uses car for work. I need to get something before school starts back up and am looking at Toyota because I heard they are BK friendly but was interested in also some of the low end cars at KIA. We had one 30 day late on our car loan prior to 2009 but other than that we have had always had good car loan history. No auto loans since 2009 and we always had excellant credit in previous car buying experiences. I am wanting to be prepared when we go in and am wondering what to expect and would prefer to work with someone who will not rake us over the coals.

So, I am wondering is KIA BK friendly? What other dealers are BK friendly? Ford, Hyundai, Chevrolet? What is the enhanced Auto Fico and how can I find out what ours is?

Is it possible to lease with a credit score in the upper 600's? We do own a home and have never been late on house payments either and have equity which I wanted to pull out and use to buy a car but found out we cannot get any home loans until it has been 4 years frm discharge. We don't want anything fancy, just something reliable with AC and are planning on looking at used vs lease to get a low monthly payment and will have a trade plus $1000 to put down. Any info would be greatly appreciated. TIA!

[mavric]

I know here in Atlanta , a tv station has a show that comes on fri at10 am called autoscoop. Ever week they have a diffent dealer , all say just come in it's doen't matter about credit.. heard of people with 450 scores getting new car;s . Kia is all ways on there . One of the Kia dealer said if your in a active ch 13 they can get you in a new car.

ps Google Autoscoop ,some of there show's are on youtube.

[AngelinaCat]

I can't speak of KIA, but we went with a local used car dealer that we had done business before we BKd, and purchased a good used truck, with financing through our CU. That was in February of this year. We were discharged August 2008.

[Helpful1]

Thank you both for the information. I will check out Autoscoop on youtube. I guess the next question is, will we be able to get reasonable interest rates with the credit score and being almost 3 years out and paying everything on time. What will it do to my credit score if I have a bunch of inquiries if I try more than one place? Is it a neutral impact if it is done within a certain time frame, like one month?

[LadyInTheRed]

If you have multiple car loan inquiries in a short period of time, they will be counted as a single inquiry. With your credit score, you won't get the best rates, but you will probably get something reasonable. You won't know until you apply.

[AngelinaCat]

If you have multiple car loan inquiries in a short period of time, they will be counted as a single inquiry. With your credit score, you won't get the best rates, but you will probably get something reasonable. You won't know until you apply.

Not necessarily. Before we settled on the truck we bought, we went to the three big name American brand auto dealers in town--all owned by the same person. Can you spell 'monopoly'? Each tried to manipulate us into financing through their companies even though we told them from the start, that we would only deal with our CU, and not any of their banks.

The result was three hard pulls on our credit, which put us back in the 500s when we had been near 700. That meant that our loan rate is higher than it needed to have been had those turkeys not done that.

[LadyInTheRed]

I guess I should have said multiple inquiries usually will be included as one. There seem to be exceptions to every rule. Apparently, inquiries are not always coded correctly, which can result in problems. Below are links to relevant information. The last is an L.A. Times article about incorrectly coded inquiries related to mortgage applications. The same can be true for auto loan inquiries.

http://www.myfico.com/crediteducation/creditchecks.aspx

http://www.experian.com/blogs/ask-experian/2013/01/30/multiple-auto-loan-inquiries-count-as-only-one/

https://help.equifax.com/app/answers/detail/a_id/136/noIntercept/1/kw/rate%20shopping/session/L3RpbWUvMTM3NDUyNDEwNS9zaWQvZTFuUGpUdmw%3D

http://www.forbes.com/sites/ashleaebeling/2013/05/13/five-credit-score-misconceptions-that-can-cost-you/

http://www.bankrate.com/finance/credit-cards/how-credit-inquiries-affect-credit-score.aspx

http://www.incharge.org/military-money/story/the-truth-about-multiple-credit-inquiries

http://articles.latimes.com/2012/jun/10/business/la-fi-harney-20120610

In typical cases where inquiries are properly coded, depending on the scoring model used, multiple inquiries for mortgages or auto loans within 14 days, 30 days or 45 days should be counted as only one inquiry.

[frogger]

You're looking at this the wrong way. Don't worry if Kia is bk friendly or not, for if Kia is not, they will have someone that is. With credit in the high 600's, you should have no problem getting financed for 48 months at under 3% by someone. If you go to the Kia route and they won't finance you, one of the banks will.

[Helpful1]

Thanks for all the helpful info! I bit the bullet and applied for a Capital One Auto Loan and we were approved for a 72 month loan at 4.3% for $19,200 at 110% financing which I thought was pretty good. We only asked for a loan amount of $16K because we want to keep our payment low and just need a reliable car for me to get the kids to school and appointments. I may still see if whatever dealer we end up at can get us a better rate but I am satisfied with the rates considering the past bankruptcy and now at least know that I won't have to pay some outrageous interest rate. :-) Now, I just have to decide on a car!

[tobee43]

i just used the cap one blank check and worked no hassle at all. we got 5.18% with a credit score of 711 but the dealer didn't even run our credit and said it's running between high 5's to approx 8% i asked why? i see all these 1.9 or 2.3 well it depends on the car. didn't much matter for us since i only took a part of the cap one check towards the car and will pay it off within 6-9 months, so the interest rate didn't mean that much to us since it will be paid off before the bank get much interest at all.

[Helpful1]

That's good to know! Did you tell them upfront that you were going to use it? I keep reading you are supposed to not give much information until the price is negotiated. Did you use a preferred lender to get the $100 cash back? Also, did they tack on an acquisition fee? I was told at the Kia dealer that they add a $795 acquisition fee to all their internet prices and even for the used cars which I thought was odd...

[IBroke]

The result was three hard pulls on our credit, which put us back in the 500s when we had been near 700. That meant that our loan rate is higher than it needed to have been had those turkeys not done that.

Wow, I've NEVER experienced before that 3 inquiries lower your score by about 100 points. Sine inquiries only account for about 10% of the score, that makes me think that something else on the report changed in that timeframe, too.

[Pjmax]

Wow, I've NEVER experienced before that 3 inquires lower your score by about 100 points. Sine inquiries only account for about 10% of the score, that makes me think that something else on the report changed in that timeframe, too.

I agree with this. I've been watching my reports and fako scores daily (ficos about monthly,) since discharge, and in my case, each hard deleted or added was 7 points. Just don't want anyone to be scared off of inquiries unnecesarily, although it's best to not get carried away with inqs.

[ksgirl38]

I just bought a car last weekend and from my experience I found that the dealership I had bought from before I filed my BK still gave me the best rate. That happened to be the Toyota dealership. I would recommend holding off on any credit checks until you find the car you want. There's no need to take any unnecessary hits on your credit score. I use Credit Karma and Credit Sesame and they actually ended up being fairly close to what my credit score was so I had an idea going in.

Mazda pulled my credit Friday night and then Toyota did it about 20 hours later, my score only dropped 7 points due to the credit check. Also, you can negotiate the interest rates. When Mazda first pulled my credit they gave me 4.9% and I told them that was high. My previous loan had been 0% so paying any interest to me seemed silly when half the dealerships in town offer 0% interest. Well they went back and called the home office and got me 2.9% through Wells Fargo. Unfortunately there was some miscommunication with Mazda about the car price and I ended up walking out, but I still got 0% from Toyota. Toyota has a tier system and even though I wasn't in the top tier they bumped me up because I was a previous Toyota customer and I had never been late on a payment. I was also buying from the same dealership so if there's someplace you've bought from before then they might be willing to work with you again. The car loan had been reaffirmed. I ended up getting 0% interest from Toyota and a payment that was $.08 less than what I walked in with. The only downside is I would have had the car paid off in 18 months - 2 years and now I'll be making payments for the next 5, but on the bright side the payments should raise my credit score even higher.

Oh, I was discharged last October so not quite a year after BK.

[SPalin]

Good information! If you already have financing lined up at your Bank or Credit Union and you don't think you can get a lower rate, DO NOT let the dealer run your credit report again to shop for a lower rate, I had 30 inquires and none were any lower than the Bank! I guess they were not coded as one inquiry (this was within a 3 day period 28 from the Dealer inquiry, shopping various banks) and it did lower my credit score 100 points to 592! I will be shopping for a new car in the next few months, I will be getting my loan though my CU and will not allow the Dealer to run my report and if they say they must (they don't) I'll be walking out and driving to another dealer! Unfortunately, none of the cars I'm interested in offer 0%!