Buying Car before Filing Chapter 13 - question about interest rate

[ccmisery]

I think it is only used in your file if a deal is made.

I was shopping at BMW which BMW FS is very conservative (strict) on their lending criteria.

I would avoid luxury brands as that is a big red flag.

[SMinGA2]

I imagine marking 'yes' would be an automatic denial. On the other hand, can you honestly say you're 100% certain you're filing in the next 90 days? I was about 90% sure we'd file by mid to late 2010, and that hasn't happened yet. (Holding pattern, as long as no one forces my hand - we won't file. Been almost 3 years now.)

My attorney recommended making 3-4 payments, letting 3-4 months pass between purchase of car and including in ch. 13. I don't think there is a hard requirement but local attorneys know what might or might not cause trouble.

[debtinohio]

I think it is only used in your file if a deal is made.

I was shopping at BMW which BMW FS is very conservative (strict) on their lending criteria.

Avoid German Luxury car brands at all costs. I can't begin to explain the load of crap I was given about my new Mercedes at the time even though it was just a C-300. I turned it in on lease a few months into the plan and was approved for a Toyota by the Trustee. (which was actually more $$ than the Mercedes).

I also don't recommend having a nicer car than your Trustee (my other car) lol.

[paulsk]

I did the same exact thing, was going to file in the next two months and wanted to replace my 10 year old car. Was turned down everywhere except VW.

That's a tough one, as I'll be in the same boat soon. I hope I am not asked that question on filing in the next 90 days.

Read the fine print on liability, it's probably a means of filtering but you can always say, well I did not think I was but you know.

Who are you shopping with, auto make? I heard some are worse then others on bad credit scores and you won't even get a loan.

[ccmisery]

I did the same exact thing, was going to file in the next two months and wanted to replace my 10 year old car. Was turned down everywhere except VW.

Was it sign and drive? VW Credit or someone else? My FICO is under 600 and I don't see how I can keep my payments under $500/month even on a $18K base or so new car.

[paulsk]

VW Credit, I applied online first, then they called and confirmed that i was qualified. I had to go to the dealer to see what the interest rates were. But, I did not follow through.

Yes, you are correct, you cannot get anything above 18K, with a 18-20% interest rate which comes to around the 500$ limit for 60 months. I would have gotten a Jetta or a similar car at that time for that amount.

I have a 670 score and got rejected with everyone else, except RoadLoans with CarMax.

[ccmisery]

I know Honda credit is tough, but knew someone who filed 7 and then leased a car with them after discharge in around 6 years after still was on their credit report. They did not even have a job at the time either, this was in 2006 back when credit was given to anyone.

I may try VW but the reliability and maint costs are a concern.

[Sammie]

We are 6 mos. into our Ch. 13, have a 10 yr. old vehicle & keep it well maintained. Our Trustee allows $7,000 Max. on purchasing a car while in the plan. Hopefully, since we keep the car serviced we will not need to do so. sammie

[ccmisery]

I have a 14 year old car and a newer leased car that has less than 2 years left on the least, talk about being in a dilemma! I don't know if I can even finance it right now or during the end of the lease when we will be in the middle of the process. I am the only one working right now, but we need 2 cars regardless and when my wife finds a job well then that's obvious. My 14 year old car may last 3-5 years but it's going to need work that cost over $500 I estimate. The biggest cost items on older cars tend to be transmissions, I know my car and that's the only thing that concerns me.