Lease car question

[holycrap]

My attorney didn't have a strong opinion on this yesterday so I will ask here.

My wife and i have a 2008 Altima on a 3 year lease. We are 12 months into it and planning on filing CP13 in Oct/Nov. This means that the lease will run out less than 2 years into our anticipated 5 year plan. My questions are these:

Will Nissan be likely to allow us to keep the car and purchase it after we have filed CP13? i will have never missed a payment.

If we have to turn the car in what are the chances of us actually getting anohter car loan during our 5 year plan?

If i try and break the lease now and purchase/lease a car for 5 years i am going to pay some pretty steep penalties and most likely raise my current payment from a reasonable ~400.00 to something over 500.00. What will the court say about this? I can afford to pay more, but will the court laugh at us and take the car away?

I just do not want to get into a CH13 plan and have to try and find a car for my wife and not be able to. Trying to prepare for everything now.

[falken]

My advise.. buy a new car now and reject your current lease in the CH13.

You are going to a difficult time getting financing while in a 13. You need trustee approval and if you can do it you will be looking at a 20% APR loan.

[holycrap]

My advise.. buy a new car now and reject your current lease in the CH13.

You are going to a difficult time getting financing while in a 13. You need trustee approval and if you can do it you will be looking at a 20% APR loan.

So if i go out this weekend to get a new car do i still need to be concerned about the payment staying around the national average? i think i check and it is 489.00 or so. Would the court balk at my payment being closer to 600.00?

I wouldn't have much if any to put down.

Then i just return the altima to Nissan and roll the negative equity into my Ch13?

[falken]

So if i go out this weekend to get a new car do i still need to be concerned about the payment staying around the national average? i think i check and it is 489.00 or so. Would the court balk at my payment being closer to 600.00?

I wouldn't have much if any to put down.

Then i just return the altima to Nissan and roll the negative equity into my Ch13?

You are going to want to keep the payment under $489. If you are going to be in a 100% payback it would be less of an issue however.

The deficiency on the lease would be treated as a regular unsecured claim.

I don't know what your credit is like right now or what kind of interest rate you can get, but at 9% a car under $22k would put your payments where they need to be.

I had 2 car payments, one at $469 and one at $529. The trustee raised my payment $50 over what my projected DMI was to be able to confirm the plan because of the $529 one. It didn't help they were luxury car manufactures.

[holycrap]

You are going to want to keep the payment under $489. If you are going to be in a 100% payback it would be less of an issue however.

The deficiency on the lease would be treated as a regular unsecured claim.

I don't know what your credit is like right now or what kind of interest rate you can get, but at 9% a car under $22k would put your payments where they need to be.

I had 2 car payments, one at $469 and one at $529. The trustee raised my payment $50 over what my projected DMI was to be able to confirm the plan because of the $529 one. It didn't help they were luxury car manufactures.

After talking with my wife and doing some more thinking i believe we are going to keep the Altima and pray they let us keep it when the lease expires. At this point our credit score are in the low 600's and we have no real down payment so any car we could afford would be of less quality.

The possibility of getting in a jam in two years is real, but the wife seems ok with the risk.

Thanks,

[falken]

Let you keep it when the lease expires? The only way to keep it would to be to get a loan to purchase it from the bank, not an easy task in a 13. I can guarentee they wouldn't approve you for another lease (or to release that vehicle).

You will probably need to turn to buy here pay here type of places to obtain a new car after your current lease expires. But I understand you may be in the same boat now anyway.

Hope it all works out in the end!

[UpsideDownMI]

I am in the same boat. I have a lease due next August that will need to be replaced. You can extend the terms of the lease with permission from your lender and trustee.

In my case I was thinking of exercising my option to purchase at the time of filing and paying the purchase price of the car over the course of my plan. This would be my last resort if I can't get anything financed before filing.

[holycrap]

I am in the same boat. I have a lease due next August that will need to be replaced. You can extend the terms of the lease with permission from your lender and trustee.

In my case I was thinking of exercising my option to purchase at the time of filing and paying the purchase price of the car over the course of my plan. This would be my last resort if I can't get anything financed before filing.

That is a viable option also. The timeline for us is a little tighter becuase we can't wait to make the decision until filing day. We stopped paying unsecureds this week and fairly soon we will have that issue to deal with when checking credit. We probably need to move in the next 7 days.