Best car buying situation....

[sassiebaz]

Question

Would there be an issue if someone bought the car for me then transfered the title to me? Would the value of the vehicle, say it was worth $8K, be an issue?

[spearmint]

Okay, so is your dad expecting you to return the money while you are in the Chapter 13? I would expect that it wouldn't be a problem... I would pay the car outside of the plan and not even mention to the dealer that you are planning on filing BK... in case that isn't already a given. Most attorneys will "suggest without suggesting" that you purchase a new car to get through the 5 years if your current car will not make it and to get the financing while you still can. I would second BigJohn's suggestion of purchasing a new 2008 model and stay in that 10-15k range on the price. DO NOT go to one of those "your job is your credit" kind of places and get stuck with a craptacular interest rate. That is no good at all. I would consult with your attorney, if you have retained one (I'm just catching up on everyone and not familiar with your situation).. but I would probably take the money for the down payment and purchase the car in my own name as long as he is not considering this a loan due back in the immediate future, like someone you might list as a creditor on your plan. Your father is right to not to want to cosign right before you go into a 13 that could be very bad for him.

Gees! I didn't realize you could buy a new car for 10-15K anymore.

[sassiebaz]

OK, it's not a "new" car, just new for us! I thought I made it clear, we are buying a used car as we are letting our "new" Durango go back to the bank(who happens to call me like 10 times a day) I am buying a used minvan and trying to stay under $9K out the door.

[pcn]

If you own it free and clear (by someone gifting it to you before you file), wouldn't the amount of your allowable exemption come into play?

[sassiebaz]

If you own it free and clear (by someone gifting it to you before you file), wouldn't the amount of your allowable exemption come into play?

I guess that is what I'm trying to figure out. I don't know alot about this kind of stuff.....

[NowImDownInIt]

Gees! I didn't realize you could buy a new car for 10-15K anymore.

You can right now.. Dealerships are giving HUGE discounts on "new" 08 models that are just sitting on the lot... And Hyundai (which even though I am a GM girl myself.. is coming up in the world) has several cars that are already in this price range. They also have a 10 year/100,000 mile warranty which is really helpful in a ch 13.

[NowImDownInIt]

I guess that is what I'm trying to figure out. I don't know alot about this kind of stuff.....

What state do you live in? Have you looked up your allowable exemptions? That would be an issue. Use the NADA to find out the value of the vehicle that's what most attorneys use.