Getting a car loan Before filing chapter 13

[sheilaE]

I've posted a question on this before, but want to check again and ask if anyone has done this... and if so, who did they go through to get their loan?
When I asked our atty about getting a new or used car he said yes-it's a good idea to not go into a chapter 13 without a reliable vehicle, but he had no suggestions for who would finance it for us That being said....how can we get one when we are delinquent on ALL our cc payments? We haven't made any payments since January. It shows on our credit report. I applied 2 days ago with a company that deals with people with bad credit-they haven't responded and I'm thinking they never will. Is it better to wait and do this after you file bk? At least the BK explains why we haven't paid. Right now I think we look like a BIG risk
All Suggestions welcome

[SMinGA]

Who did you apply with? Roadloans & Capital One Blank Check are my suggestions.

[sheilaE]

It was web2carz.com. I never heard back. I'll give yours a try.

[Amadan]

We just did it today at carmax. got approved at 7.9% even being 3 months late, and it did show on the credit report. Finance guy said bad credit is the new good credit. It was suggested we not enter a 5 year chapter 13 with 2 unreliable cars, so we traded in the old one that was paid off (and in worse shape) and used what was left after legal fees from our tax return to pay TT&L.

Somehow this feels very messed up, but apparently its all legit.

[sheilaE]

Good for you Amadan! That makes me very happy to hear

[LostNFound]

We haven't paid on our cr. cards since Feb 2009. We had an auto that was a lease and due to be returned in September 2010. The attorney we spoke with suggested that we get a loan for our leased auto and use my husbands auto as collateral on the loan. Needless to say, I went EVERYWHERE online and NO ONE was willing to consider giving us a loan for any term. Both my husband and I have credit scores in the 560's (It was 750's about a year ago).

Anyway, we ended up financing with our local bank. This is not something I wanted to do, but they knew us and were willing to do it. I still feel that it was short of a miracle, but very relieved that we got it accomplished. Good luck to you!

[LadyInTheRed]

If you can, I suggest you disclose your credit score to any other lender you apply with and ask them to determine whether you qualify before they actually run a credit report. Running the report will lower your score.

I'm still current on all debt, so I knew I could get a loan. My score with Experian was 735 3 days before applying for a car loan. I filled out an online application with the dealer and one at lendingtree.com (in case I didn't qualify for the dealer's low APR offer and they offerred too high a rate. Eventhough you get online approval, they don't tell you the rate). When I was signing paperwork at the dealer, the finance manager handed me a disclosure of my Experian score and it had dropped to 721. There were no other changes that could have caused that. I don't know if your score will drop for each application within a short period of time, but don't risk it.

[Lissy]

I filed my Chapter 13 one month ago. I was in a bad car accident last Friday and my car was totaled, so I'm now in the position of needing to get a new car loan. I have a nice down payment available due to my car being worth more than I owed on it, but CarMax wouldn't approve me. I did get approved through Roadloans, but the interest rate is 18%. That sucks, but I may have no other choice. I was surprised anyone approved me. I have no idea what my credit score is, but I know it has to be in the toilet.

[sheilaE]

Oh how I wish we could finance through our bank, whom we've been with for over 25 years, but 2 of our cc are through this same bank, so that probably won't work.

I've already made the terrible mistake of applying at 3 different places, not even realizing I was lowering our already low credit score even more. I'dlike to try Roadloans, but I don't know what our credit score is and so they'll run a credit report and lower it even more.

The other problem for us-besides being delinquent, is our debt to income ratio is SUPER high. I think that may be more of the problem then the delinquent cc payments. The late payments probably aren't even showing up so much yet. What is showing up is that we have a massive amount of debt and not enough income to support it. We may end up scratching this whole thing and pray our cars make it another 5 years with no major problems, although last year we sunk over $1400.00 into one of them

[SMinGA]

One thing about credit score & car loan apps... All pulls for car loan apps in a short time period count as one. (Works the same for home loans, but that may be a 30 day period.) They know your credit is going to be run multiple times when car loan shopping...

Here is backup:

http://www.myfico.com/HelpCenter/Autos/Car_Decision_Credit.aspx

[bkstuff]

My understanding about applying for credit is that if you are searching for a car (or whatever) and the credit applications are within a very short period of time, the multiple applications are treated as one. Not sure if this is true- but it makes sense....no dealer is going to take a customers word for it

edit: SORRY - SMinGA's post was not on when I posted. Good to know what I heard is true

[bkstuff]

On the Carmax site it looks like they only finance for the Carmax stores...is this true? (We do not have one in our state)

[sheilaE]

I just applied with Roadloans and was denied for the following reason: No open auto finance trades. Not sure what that means. Maybe we need to trade in a car? We have a small down payment we could have used. Oh well

[SMinGA]

It means you have no loans (now or previously) for vehicles. Odd reason for a decline - but I guess they're saying they can't judge your future likelihood to pay because you have no car loan payment history???

Did you apply with your just, or joint w/ spouse?

I just applied with Roadloans and was denied for the following reason: No open auto finance trades. Not sure what that means. Maybe we need to trade in a car? We have a small down payment we could have used. Oh well

[sheilaE]

We've paid off 2 cars within the last 5 years. Back when our credit was still good. I filled out the app with just my husbands info since I don't work.