Car max???

[midnightrocket]

WILL THEY FINANCE US FOLKS AFTER FILING.....DISCHARGE...ETC...

[optimistic1]

I work with someone who has a credit score of 530, with open charge offs, and seriously delinquent activity on her credit file.

Walked into a company called DRIVETIME, and was approved for about a $18000 car.

Im not too sure about CarMax though.

After your discharge, you are less of a risk then you were before, so you should have no problem getting financing.

The interest rate on the other hand, will be high, but, after you pay on it for about 6 months to a year, apply with a re-financing type lender, and you will get a lower rate and payment. Dont continue to pay on a 15% loan for the full term, that would make them so happy.

[coloradomrg]

Carmax does not have a lender that can work with open BK currently(suck)... but the day after discharge they can get you financed typically(yay).

Shameless plug... I work for Carmax part-time and if anyone is interested in buying a vehicle from us, please let me know. It would be cool to have some extra business come from other BKers I can do the majority of the work on the phone or through email, and send you in to just pick your car up at the closest store and sign papers I started there so my wife can stay home with the little guy after our bk, but still work full time as an electrical engineering designer.

ALSO we can sometimes get you a better rate if you apply at our stores than if you go through roadloans or cap 1 on your own, and they are 2 of our lenders!

Drivetime = rent to own. Approve 18k, sell you car worth 10k for 18k. Not really a great plan, although if you don't have another option, it may be for you.

[simon2020]

Optimistic, I am close to filing for chapter 13 and I was wondering if you could explain how Drivetime works? When they say rent-to-own, am I assuming the payments would be lower than on a lease or if I bought the car with a trade-in? And how long would I be renting this car -- what are the typical terms 36 months? 48??

It looks interesting and I would appreciate your comments on the program.

Thanks.

[optimistic1]

Im not aware of their rent to own policy, but I can tell you that my friend financed her car for a total of $18000, at 48 months, and her payment was only 360.00, so the interest rate sounds like it would be around 10%, which is very fair.

I would just try them out and see what happens, it cant hurt.

[simon2020]

ok - thanks

[optimistic1]

Drivetime = rent to own. Approve 18k, sell you car worth 10k for 18k. Not really a great plan, although if you don't have another option, it may be for you.

Drivetime is not rent to own, they actually finance you the vehicle, with their own credit corp.

http://www.associatedcontent.com/article/242832/need_to_buy_a_car_an_introduction_to.html

[simon2020]

They sound a little like carmax accept they have their "own financing" as oppose to carmax where they finance through third parties.

[coloradomrg]

If you buy-here-pay-here, as you do with drive time, you are essentially renting to own.

The finance process, the quality of the cars, level of service, and selection are not anything alike. There is definetly a reason that drive time does not spell out their warranty online, nor their pricing, or even give you a picture of the car. They give you a link to the vehicle history report... but make you sign up so they can call you, email you and generally harass you until you either buy from them or talk to enough managers to get removed from the system.

They do fill a niche and as such provide a service that is unattainable to some people any other way, not knocking that. But they are not the BEST option when it comes to purchasing a car. If you can't get financed elsewhere or with your own bank, they may be worth a try if you HAVE to finance a car.

[optimistic1]

Honestly, no matter where you go, or what bank you get a loan with, you are essentially renting to own.

If I dont pay for the car, they come take it away.

Similar to any rent to own store, if I dont pay for the washer and drier, they come take it.

So no matter if I have a loan with DriveTime, or with XYZ bank. If I dont pay, they take it.

I dont see how your trying to differentiate the two. You dont technically own a car until the title is in your hands, or they take it from you.

Further

Drive Time Car Dealership finances most loans threw their own loan company, Drive Time Credit Corporation, instead of a traditional car dealership that submits your applications to outside banks, thus causing numerous inquiries on your credit report. Drive Time Credit Corporation prides itself of financing 99% of all car loans that come to their dealerships.

Not only does Drive Time Car Dealership finance most of its own loans, it also has different programs that benefit future customers. All vehicles that Drive Time Car Dealership sells are newer model vehicles. Most of these vehicles are 7 years old or younger. All of these vehicles have a Car Fax report that is included with them for free and also go through a 53 point inspection before they are placed on the lot. This inspection is not as good as a dealer inspection, but how many used car dealerships do an inspection that is this thorough?

So, if you cant find one anywhere, go to DriveTime.

And again, it IS NOT RENT TO OWN, it is financed.

[Confused33]

If you buy a car at CARMAX you will, without a doubt, pay more than you would if you went and found the EXACT same care at a dealer that welcomes negotiations. Sure they are no negotiation and they offer "fair" prices but fair can mean alot of different things to alot of different people.

[optimistic1]

Correct, but the last time I bought a brand new car, it was worth less than what I paid for it the moment I drove it off the lot.

And the last time I bought a used car, it was upside down over 4000.

So they will get you every time, its what they do, granted, at Drivetime, they might get you for a little more, but its because your credit stinks. A dealer will play the same game and say the discharge is the reason why.

Just shop around, that is the key, and dont be afraid to just walk away.

[jeb]

OK - if USAA takes my car back, do they auction it off or do they have people they work with all the time that takes and resells the car?

Is there a way to purchase the SAME car back if they won't deal with you and you let it go back?

I spent a week looking a cars to replace my 05 Kia Amanti with only 22,000 miles on it and there is nothing out there that I would swap it straight across for - except another Amanti.

I do need lower payments and am upside down by about 4 grand. - jb

[coloradomrg]

A dealer will play the same game and say the discharge is the reason why.

Not true at all dealerships... We've all had different levels of experience, and it's good to bring them all to the table. I've owned 4 brand new cars and 4 used cars in the past 10 years.... retarded I know, but I've seen it from both sides now. I've seen both sides of dealerships now... its hard to understand what the industry does without being somewhat on the inside.

I have seen atleast 15 customers since August (when i started) that have bks discharged ranging from Feb. 08 to Aug. 08. The highest rate we offered was 12% and the best was 4%! We only have 2 lenders who offer 21% rates, and they are pretty picky about the car they will lend on, and they HAVE to have $$ down. I have hard of post bk being offered 21%(CO's highest allowable rate) from some of the other salesmen, but its not common by any means. We make NO money on financing, so it is always in my customers best interest to send them to the credit union next door who can offer better rates since they are not a "bank".

As for Carmax pricing... it can be a bit higher, but locally it is better than any other dealership in town unless it's something like an 08/09 with < 2k miles on it because new dealerships have rebates to (ab)use. If you are comparing identical used cars, check what inspections and guarantees the other dealership offers, or is it AS-IS? We do a 120pt inspection and kick any cars that we can't fix(usually if it's cost prohibitive) back to the auction. We haven't sold a car "As-is" since 1993 and we won't start now. Carmax is a store, not a dealership, and that is why we don't negotiate. Personally, I sleep great at night knowing that I didn't have to screw someone to make a buck. The same can't be said for many traditional dealerships.

Do your research. That is the bottom line when it comes to buying any car. Research for the car you want first, then research where to buy it. I'm obviously biased, but not only because I want you business. If I never see a dime, I still don't want to see/hear of people getting screwed! I have heard some really horrible stories. If you dont' have a good vibe from the salesman... walk away, your intuition is probably right!

[brokenbuthealed]

OK - if USAA takes my car back, do they auction it off or do they have people they work with all the time that takes and resells the car?

Is there a way to purchase the SAME car back if they won't deal with you and you let it go back?

I spent a week looking a cars to replace my 05 Kia Amanti with only 22,000 miles on it and there is nothing out there that I would swap it straight across for - except another Amanti.

I do need lower payments and am upside down by about 4 grand. - jb

You can try to redeem it for the current value. There are a couple of companies that do redemption loans that will finance the redemption purchase of the car. Also, I was talking to my attorney today and he said he has seen cases where people have negotiated reaffirmation agreements for lower principle balances.