I am filing in July can I buy a car now?

[Kansas1960]

I am going to be filing in July or August. I am currently having my driveway replaced since it is leaking into my foundation. This is going on my HELOC for 4,000. I just called my credit union and I am approved for a car up to 15,000 at no money down. Is this a stupid idea? My current car is worth only about 300 and has no reverse, no ac, window won't roll up or down and has 193,000 miles on it. It won't last long. Should I buy it now or pay big time rates this fall when BK is done?

[TEW]

I would get the car. Is the HELOC in the same CU as you want to get the loan for the car?

[Kansas1960]

Yes. Does that make a difference? I will keep the house and the HELOC and the "new" car all with the credit union. Everything else is unsecured CC so hopefully they will be gone with the Chapter 7.

[StartingOver08]

Yes it makes a difference because of the cross-collateralization that CU's do with the debt. Since you plan to reaffirm the house, the HELOC, and the car is sounds like a non issue for you.

[Duke89]

If you can afford the payments on a car now and will be able to continue to afford them after bankruptcy then it would make sense to get the vehicle before your credit becomes worse. Additionally, buying a new car can actually improve your odds in the means test if your an above median income filer because the means test formula gives you an automatic expense if you have a car payment. This is beneficial for folks that are driving old cars that are paid off as the means test does not cut them any slack for keeping the older car. I went out and purchased a new car 3 months before filing and it improved our means test such that we were able to go CH7 instead of CH13. The car I was driving before was almost 9 years old and was at the beginning of some costly repairs. You'd be wise to look over the means test criteria and plan as best possible so that you can be successful with your filing.

[danaf]

Getting the car now is not a problem. But I'd think twice about doing it with the same c/u who has your home and other loans. The thing is - you say you want to keep the home now but no one knows what the future holds. Having all your loans in one basket gives them more leverage so to speak. I would definitely look around for another CU or bank that will finance the car for you just in case you change your mind about the home in the future.

[jribe]

I am going to be filing in July or August. I am currently having my driveway replaced since it is leaking into my foundation. This is going on my HELOC for 4,000. I just called my credit union and I am approved for a car up to 15,000 at no money down. Is this a stupid idea? My current car is worth only about 300 and has no reverse, no ac, window won't roll up or down and has 193,000 miles on it. It won't last long. Should I buy it now or pay big time rates this fall when BK is done?

i would get the car now. Obviously you will need a new one (or new to you!) in the near future and you might as well get one while you can get a decent interest rate. If you get one after you file you're looking at some outrageous rates!

Just be careful on what else you have with that CU. There's a lot of people here that have been hit with cross-collateralization clauses.. Basically that they have to pay all accounts with the CU- or they'll repo your car. Even if you're current it seems.

I actually went through a dealership and got a certified used car about a month ago at 4.9%. It was a stellar deal- the BB for the car was about 4k more than i paid too. It's a great time to be car shopping. Just make sure you shop around.

Good luck!