Permission to Incur debt for car financing question

[tammygirl1]

I sent an email to my lawyer asking about the possibility of getting financing for a car and she is having the trustee send packet to fill out which has a 'budget' form included. I asked if this will rock the boat and cause them to increase my payments (recently picked up a small low paying 2nd job and reduced medical premiums since filing) She 'didn't think so'....but to forward paperwork before I send to trustee before to check out. Has anyone sent one of these packets in which in turn caused increased payments? I think we have it pretty good and don't want to rock any boats since we are still very fresh (almost 1 year in). We do need a more economical car (have guzzling Tahoe) but don't want to jeapardize a decent plan that is in place because of it..
Thanks in advance!

[Nicollette]

I got the approval to finance a car, but I didn't have to fill out any paperwork. I surrendered the vehicle that was being paid for in my plan, so the paralegal had to modify my plan since some of the money from my plan payments were paying for my car. She worked up a budget of what I could afford and submitted it for approval. Now that I'm paying for my newer financed car outside of my plan, my plan payments were lowered.

[MOMof3]

We didn't have to fill out paperwork, but the Trustee is probably just making sure you can afford the payment. Are you trying to modify your plan? We didn't modify our plan, just asked for the permission and got it. Trustee apparently didn't care where we got the $ to pay our new auto loan--LOL. We ended up NOT doing the financing because it was such horrible interest rate and bought a car w/cash instead.

[ValleYum]

@tammygirl1

Remember with a newer car you will "need" more/better insurance (GAP coverage, etc.) and this should/could cost you more.

[tammygirl1]

Hi all,
Update: Still waiting for lawyer to let me know if the budget I am submitting will trigger a revise of my payment plan....seems are less eager to respond to emails once confirmed. Ugh. Anyway, I spoke to the client services dept with Trustee and was told to secure financing (but not to sign anything) and fax that over with the dealer's write up and budget documentation. I am amazed that we were approved let alone approved by a credit union for 5.95% one year into our chapter 13! I was thinking it would be at least 14.99 IF approved at all.
New question to peeps that have financed a new car during their 13, what % did you pay? I am curious to know if we are actually getting a good deal or is this somewhat normal? We purchased a used car right before signing and got 2.9% (best % for used) so I know our credit wasn't horrible back then..

[papie]

Hi all,
Update: Still waiting for lawyer to let me know if the budget I am submitting will trigger a revise of my payment plan....seems are less eager to respond to emails once confirmed. Ugh. Anyway, I spoke to the client services dept with Trustee and was told to secure financing (but not to sign anything) and fax that over with the dealer's write up and budget documentation. I am amazed that we were approved let alone approved by a credit union for 5.95% one year into our chapter 13! I was thinking it would be at least 14.99 IF approved at all.
New question to peeps that have financed a new car during their 13, what % did you pay? I am curious to know if we are actually getting a good deal or is this somewhat normal? We purchased a used car right before signing and got 2.9% (best % for used) so I know our credit wasn't horrible back then..

Hold the phone!!! You got a loan for 5.95% one year after your bankruptcy?

We thought we were going to have to finance a car last year and we couldn't find anything under 18%. We'll probably have to get a car next year though, unless some other friend randomly decides to sell their car for super cheap because they need the cash. lol...unlikely. Anyways, I never applied to any credit unions, just big banks and dealers, I've heard that credit unions are much easier to deal with, that sounds about right. Good for you!

[jetsfan2010]

Your overall banking relationship with the credit union definitely helped regarding the rate on the car loan. Congrats!

[tammygirl1]

Thanks jetsfan2010! Funny thing is we were not members of the credit union until after approved for the loan ?!? So, when we went in to sign the membership papers the rep told us my husband came up a tier 2 (over 800) which sounds impossible. She said we are actually approved for 60k (no thanks....). Anyway, since she told us that we decided to apply online at the dealship and see if we qualified for 0%. Their assessment came back WAY different. All three of my scores mid 600 - 500s (expected) and my hubby's only had one come back others were blank??? The one that came back was mid 600. The sales guy says the credit union prob uses a different score structure and other factors plus they prob got the one that came back over 800?? He said we would need a significant down since it was Chase. I am very confused but still very pleased to get 5.95 at any rate. Neither application asked if were or have been in BK but we did disclose it to the credit union AFTER we were approved since we still need to submit it all to trustee for approval.