Ch 13...Get a new car? Huh?

[ekorB]

So I've been doing my reading here on the forum and have come across many threads where lawyers are recommending for people to get a new car...or at least a more reliable car. I understand the need for reliable transportation during the 3-5 years of the CH13. I just want to know how this is supposed to work.

We have a '99 sedan and a '98 truck. Both are paid off and they both have anywhere from 110k-125k miles on them. While they are reliable now, I know I'll have problems in a couple years with one and/or both.

Being that we stopped paying on all CC debt, and I'm sure others are doing the same thing, how are they/we going to get approved for credit to purchase another vehicle?

Edit: I haven't had to buy a vehicle since '99, so I may be out of the loop here. :-)

[TooMuchCredit]

I bought mine before any lates showed up on my credit report. I have a HUGE amount of credit card debt (maxxed on all of them), so my credit score was low. I had to take a 9% loan. I figured that was better than the 20%+ rates post-bankruptcy (plus several thousand $ down).

I was encouraged by this:
http://www.************************/...re-bankruptcy/

I was discouraged by this:
http://www.************************/...13-objections/

However, these are from over a year ago so fingers crossed things have changed!!!

[liz417]

Same here:

I purchased my new (actually used, '07) vechicle BEFORE I stopped paying the credit cards. I was never late, but I was maxed out on all cards, therefore, my credit score was low...I got an 8% loan.

Good Luck!

[mbutterfly]

We traded our old car (high miles) last month and got a 5.78% new vech for two reasons, first because we wanted a newer vech since we are going to be in a 5 years plan and second we had alot of left over on our DMI.
DH credit was still decent. We are filing next week.

[paradise lost]

We stopped paying a week and a half ago on the cc's. I am going to try to get a 2001 vehicle with 49k miles and an extended warranty to replace my 95 Tracker (160k) which is OK now but I can't see how it'll last 5 years. It's getting all to real. See the lawyer next Friday. In the mean time, all my money is going to fixing the house needs and filling the freezers and pantry with food for 6+months in order to soften the initial blow. My 2 kids (7 and 1 1/2) dont know what CH13 means... When we are out we will not return to the same cc mess up we did this time out.....

[filingin08]

By December 2007 we had stopped paying on everything (some things long before). We waited until March 2009 to buy a car. I don't know what our score was, but am sure it was low. We actually needed two cars - on the two we had one's lease expired and the other was starting to have issues. After being turned down at several places, we went to a high volume dealer who was able to push our loans through. According to the finance guy, if a bank wanted good loans from them, they would take a few of the risky. Not pretty interest - 18+ on both - but we couldn't walk away, they were the only ones who would deal with us. Besides, we figured the more we paid on the cars, the less that would go towards creditors. I wonder if we would have been able to do that now with the credit crunch. If you have decent scores, I suggest getting a car now. Don't go through the stress of what we did.

[albacore44]

Bought a car in october on advice of lawyer. no lates on credit report, but score was low due to high balances. GMAC had just stopped financing anything under a 800 score. Salesman told sales manager, if we can't finance this guy, 30 years on job, owns house, etc. then we need to close the doors and stop selling cars. They ran it through the internet, and it was accepted by Chase at 9.99 %. just made 1st payment.

I'm holding off filing for several months to try and fit into a Ch7. My hours were reduced and wife lost job 2 weeks ago so income will be much less over the next 6 months.

[TooMuchCredit]

I bought mine before any lates showed up on my credit report. I have a HUGE amount of credit card debt (maxxed on all of them), so my credit score was low. I had to take a 9% loan. I figured that was better than the 20%+ rates post-bankruptcy (plus several thousand $ down).

I was encouraged by this:
http://www.************************/...re-bankruptcy/

I was discouraged by this:
http://www.************************/...13-objections/

However, these are from over a year ago so fingers crossed things have changed!!!

After speaking to a lawyer today, it apparently was a bad move. Says no way it will fly in a 7 and will be considered abuse.

I did buy a "nice" car. low $30K range. Wasn't that much more than my last one, but apparently the brand stigmatizes it as luxury. Attorney said I could have bought a cheaper new car. Oh well.

I'll go see another attorney and see what they say...