Question about reaffirming vehicles

[gingerbug]

Our BK is in Louisiana and we have currently a chapter 13 that we are going to convert to a chapter 7 because my husband was just injured on the job and we will be on workmans comp for several months. I am trying to make a decision regarding our vehicles. Do I reaffirm? Is it easy to get financing for a new one after a chapter 7 discharge? I just dont know what to do. Any pros or cons?

[debtmonster]

Our BK is in Louisiana and we have currently a chapter 13 that we are going to convert to a chapter 7 because my husband was just injured on the job and we will be on workmans comp for several months. I am trying to make a decision regarding our vehicles. Do I reaffirm? Is it easy to get financing for a new one after a chapter 7 discharge? I just dont know what to do. Any pros or cons?

Don't re-affirm. Don't finance. Go to autotrader.com and find a car for CASH. Credit is NOT FREE. So don't give all of that interest to the banks any longer. Read all of the messages on here and don't give in to those banks. Live cheap and buy some used, crappy car until you can save up the cash for a better one.

Just keep doing what it says on here. BANK THE PAYMENTS into your own savings account until the number is high enough. Then sell that crappy car for the same money you paid for it and upgrade...

http://www.daveramsey.com/etc/cms/why_buy_a_used_car_5153.htmlc

[gingerbug]

the current market value of the two vehicles are pretty low, the trade in value is even lower, much lower than what we owe on them. Could we negotiate the price of the vehicles with the lenders?

[lolasaurus]

For those of you paying on vehicles, or planning to do so again

I went back through my financial statements, extrapolated a little bit, estimated a little bit, and realized that I've paid enough interest on non-mortgage related stuff over the past 10 years to buy a used supercar.



In cash.







Obviously everyone needs to make their own choices, but that just goes to show you how much the immediate gratification choices we've made really cost.

[debtmonster]

the current market value of the two vehicles are pretty low, the trade in value is even lower, much lower than what we owe on them. Could we negotiate the price of the vehicles with the lenders?

That's why you should just get rid of them. I owe about $12k on my car and when the bank sells it, they will be lucky to get $4-5k for it at the auction. You can bet I won't be re-affirming on that one.

Same for my other vehicle. I owe about $36k-37k as a payoff. If they auction it today, I bet they would be lucky to get $17-22k for it.

Once again, they can have it back after I file.

I plan on stalling or doing whatever I can to try to raise $3-6k as quickly as possible. We're foreclosing and will have some time to live here rent-free. I plan on banking those savings to use to save up cash for a car. If I can save $6k in the bank by December, then I am buying a $6k car. If I only manage to get $3k, then I will buy a $3k car. I have no intentions on re-affirming or financing another car again.

I recommend everyone on here do the same unless you have some insane equity in your car. Then I'd re-affirm. I would imagine that over 90% of the people on here don't have equity in their cars and we're all upside down. Many of us upside down when trading in a car that was upside down. I did that with my previous SUV. I was about $2,000 upside down. I paid on it for a year or so and got tired of the warranty issues so I gave it back. For $600/mo., they can keep it.

This is a new economy now. We all need to live on a CASH BASIS and forget credit cards and financing. Those banks have been scamming all of us for years. It's time for all of us to join up and boycott them all by not financing anything ever again. If you don't have the cash in hand, DO NOT BUY IT. Not everyone is like me in the middle of NOWHERE. Most all of you have access to public transportation. Buy some $500 beater car that you absolutely can't stand and drive it until you can save the money up to buy a good used one. There are THOUSANDS of good cars all over Auto Trader FOR CHEAP!! And if you drive around, you should find them. Every once in a while I'll see a nice looking car on the side of the road for $500-1500.

[relief13035]

Please don't reaffirm. I am living in reaffirmation HELL right now, all due to a stupid car. We are on Day 102 after the 341 meeting and it is all because I thought I would reaffirm (1) of our vehicles. THEN the lovely judge decided to get involved.

I called the court last week and my discharge is being held up because of this stupid reaffirmation. We tried to do a withdrawal, but since a hearing was scheduled they wouldn't take it off calendar.

Check this out - the reaffirmation hearing with the judge was on Wed. Our attorney told us to not show up so the judge would deny the reaffirmation. The attorney didn't show up either. What happens....the dang judge continued the reaffirmation hearing!!!

Can anything go my way??? NO

[gingerbug]

you convinced me. They can have the cars. Honestly, with what I have coming just from my state and federal taxes down the road that I no longer have to give to my chapter 13 trustee I can buy, with cash, a vehicle that is actually big enough for my family of 4, carseats and all, that is only a few years old. So, do they come and get them and make a big production for the neighbors of taking them away is it something that is arranged?

[debtmonster]

you convinced me. They can have the cars. Honestly, with what I have coming just from my state and federal taxes down the road that I no longer have to give to my chapter 13 trustee I can buy, with cash, a vehicle that is actually big enough for my family of 4, carseats and all, that is only a few years old. So, do they come and get them and make a big production for the neighbors of taking them away is it something that is arranged?

Get some P.O.S. car that you will hate for as cheap as possible and BANK the money. You will be DIEING to get rid of the car for as long as you drive it... then start saving $300-500/mo. away towards the replacement car. PAY YOURSELF! PLEASE STOP PAYING THE BANKS! I can't stand it!!

There are some okay $1500 dollar cars out there. Believe me, I hate them just as much as you will. I've owned well over 15-20 brand new cars. I'm spoiled rotten. But I have finally wised up after reading the posts on here.

All you have to do is sit down and do the math.

Is it cheaper to buy a $2,500 used car and (MAYBE) spend $2,000 on a transmission or is it cheaper to go out and buy some new $18,000 dollar car only for it to lose $9,000 in value 2 to 2-1/2 years down the road? Plus paying back maybe $20,000 to $25,000 (or more) back after interest!!!

It's cheaper to put new or rebuilt engines in a car than it is to keep spending $18k-28k for new cars. And once you put the new or rebuilt engine in the car, you should be good to go for at least 200,000 miles on it if you properly maintain the vehicle. Like I said in other posts, always use Amsoil as soon as possible and just stick to the one-year oil changes. You'll have the best oil on the planet and you'll spend the least amount of money on maintenance. 7 years of driving would be only 7 oil changes. That's dirt cheap in anyone's book.

Forget a Hybrid! Find an old 1992-1999 Honda Civic HX or VX. If you want, get the engine rebuilt and make it run like new. These cars sometimes get BETTER mileage than many Hybrids! And there's no expensive batteries to ever replace. You can often buy one of these cars for just what replacement batteries would cost in a Hybrid!

You could probably buy an HX or VX for $3,000 to $4,000 and spend $3,000 overhauling the engine and/or transmission. And then you'd have a car that would run like brand new for another 100,000 to 200,000 miles all for only $7,000!! You could have very 3 reliable cars for what ONE HYBRID would sell for at a dealer!!! And you could be getting 44 to 50 MPG without the Hybrid!!!

Follow my advice on here and you will be living dirt cheap and have lots of extra money in your pocket to stimulate the economy. The less money you spend on a car and the maintenance, the more money you have to eat out at nice restaurants, travel, invest, pay for college (without a loan), upgrade your house, etc. Stop throwing money away on depreciating assets. That's all a car is. My dad would always rag on me for buying a new car every time he'd see me in it. And ya know what, HE WAS RIGHT! I WAS DUMB for buying all of those cars. Don't copy my mistakes!

I may go after one of these old VX's or HX's even if I have to fly to the state where it's being sold to drive it back to where I live.

[gingerbug]

I have no problem driving a POS but I need to have room in it for all 4 of us and if we are giving up two vehicles and going down to one, I need to drive dh to work and back with me and the little kids. He works 2 1/2 hours a way. Granted, i wont have to do it more than every weeks cause he is gone for long periods of time then home (not 9 to 5 job) but I still need something reliable. My criteria is a used car that fits four as well as car seats and the large amount of gear dh has to bring to work with him each time. It wont fit in a trunk. My second criteria is that we pay cash for it. THEN, we can bank what we would have been paying for the car note and save up to buy him his own transportation.

[debtmonster]

I have no problem driving a POS but I need to have room in it for all 4 of us and if we are giving up two vehicles and going down to one, I need to drive dh to work and back with me and the little kids. He works 2 1/2 hours a way. Granted, i wont have to do it more than every weeks cause he is gone for long periods of time then home (not 9 to 5 job) but I still need something reliable. My criteria is a used car that fits four as well as car seats and the large amount of gear dh has to bring to work with him each time. It wont fit in a trunk. My second criteria is that we pay cash for it. THEN, we can bank what we would have been paying for the car note and save up to buy him his own transportation.

Almost every car can fit 4 people except for an expensive Saturn Sky, Mazda Miata, Pontiac Solstice, Corvette, etc.

Questions:

1. Any 4-door sedan should do fine. What is the most you will be able to afford cash out of pocket for a cheap P.O.S. (the temporary short-term car)?

2. Also, how long were you looking to drive the P.O.S. until you could save up a little more for a better car?

3. What is your nearest zip code and what is the absolute farthest you would be willing to drive to pick up a P.O.S. car?

4. Would you be willing to drive a manual or automatic only?

[gingerbug]

Almost every car can fit 4 people except for an expensive Saturn Sky, Mazda Miata, Pontiac Solstice, Corvette, etc.

Questions:

1. Any 4-door sedan should do fine. What is the most you will be able to afford cash out of pocket for a cheap P.O.S. (the temporary short-term car)?

2. Also, how long were you looking to drive the P.O.S. until you could save up a little more for a better car?

3. What is your nearest zip code and what is the absolute farthest you would be willing to drive to pick up a P.O.S. car?

4. Would you be willing to drive a manual or automatic only?

We drive a mid size sedan now and there is not enough room for dh's gear. He is an offhsore diver and he stuff takes up the trunk and the entire backseat and he HAS to have that stuff for work, he cant downsize. I live in the houston area so as big as this area is surely I could find something in this metro area. I can spend no more than 9grand. I can get an older dodge minivan on the cheap or even some sort of station wagon type car with a rack on the roof to strap his gear to, that would work. I also just checked the online thing that shows how our chapter 13 was managed and it looks like his current truck is almost paid for, if it is correct we have less than a grand owed on it. That would be sweet.

[debtmonster]

We drive a mid size sedan now and there is not enough room for dh's gear. He is an offhsore diver and he stuff takes up the trunk and the entire backseat and he HAS to have that stuff for work, he cant downsize. I live in the houston area so as big as this area is surely I could find something in this metro area. I can spend no more than 9grand. I can get an older dodge minivan on the cheap or even some sort of station wagon type car with a rack on the roof to strap his gear to, that would work. I also just checked the online thing that shows how our chapter 13 was managed and it looks like his current truck is almost paid for, if it is correct we have less than a grand owed on it. That would be sweet.

PLEASE DO NOT SPEND $9k on a mini van!! I've seen LOTS of nice Dodge Caravans for under $4,000 to $5,000.

I'm not much of a fan of them as the trannys frequently go out on them. I know somebody who works at a salvage yard and he said he's seen TONS of them where the tranny is shot. This is why I keep pushing Amsoil so much on all of you. This stuff keeps cars running like new. It's better than Mobil 1 or anything else out there.

Buy a $5,000 mini van, order the Amsoil ATF for it and bring it to a place to have the transmission flushed. It should drastically increase the lifespan if the transmission. Then you should be able to get a good 200,000 to 300,000 miles out of it before you junk it.

Just because you have access to $9,000 doesn't mean you need to spend it!! BE A SCROOGE and SAVE THE MONEY!!

Use the $4,000 for a vacation, investing, unexpected car repairs, etc.

It's better in YOUR POCKET than a car dealer's or bank's!!!

BE CHEAP!!!

The only thing you don't want to skimp on is the oils. For some reason the light bulb doesn't seem to go on when I talk about this.

Don't listen to those ridiculous articles about the 3,000 mile oil changes. You only need to do that when you use the "cheap" oil. You get what you pay for. Just do the Amsoil stuff as I highly recommend and your car will last way longer than you could ever dream about.

I push this stuff because car manufacturers and quick lubes absolutely HATE IT. They don't like selling stuff that keeps people away for a whole year. Well guess what... THAT'S NOT MY PROBLEM!!

What I like with Amsoil:
-10 years of owning a car - 10 oil changes
-100,000 miles of driving in 5 years... 5 oil changes
-I've NEVER heard of or experienced a single engine failure with this oil, EVER!
-Thumb your nose at car dealers, mechanics and quick lubes as you drive by without the need for spending thousands on rebuilding an engine, transmission or rear axle when you use this stuff.

What I don't like with the "cheap" oils that other people keep pushing:
-10 years of owning a car - a HECK of a lot more than 10 oil changes
-100,000 miles of driving in 5 years... 33 oil changes
-More wear and tear on the engine and seals
-Worse fuel economy
-More hassle and time wasted doing oil changes, sitting in lines, etc.
-Sludge build up once the car gets high miles
-Waxes and paraffins in the oil (remember, this crap came from the ground! -It has tons of impurities that can't all be removed during the refining process).
-I've known countless people who have done the 3,000 mile oil changes with Quaker State, Pennzoil, Mobil 1 and others to have engine problems once the car has gotten old and loaded with miles.
-I've known countless people who have had to rebuild or replace their tranny when using Dexron or Mercon V
-For the people who put a lot of high miles on their car using the "cheap" oil, there's TONS of people who were not able to make it. The junk yards are FULL of cars for people who refused to switch to Amsoil because they would not take the time to use it.

BE A TIGHTWAD! Spend your money on other things to help the economy! DON'T WASTE IT ALL ON CAR PAYMENTS AND REPAIRS!!!

Stay CHEAP and HAPPY!

Yes, Amsoil does cost more money than regular oil. Remember what I said, YOU GET WHAT YOU PAY FOR. One bottle of Amsoil's 5W30 is equivalent to 8 bottles of the cheap stuff you get in the auto part store. So to compare an $8 dollar bottle of Amsoil fairly, you'd have to compare 8 bottles of a $3 dollar oil that has to be changed more often. 90% of the people just don't seem to DO THE MATH.

Q: Doesn't the oil get all nasty with all of those miles?
A: NO! It's not loaded with waxes and paraffins that turn into sludge like the crap you're using now! Use an Amsoil filter that doesn't break down like a Fram or Purolator.

This should not be a debate. JUST USE THE OIL. SAVE THE MONEY. That's all there is to it.

Then put as many miles on your vehicle as you can stand (hopefully 400,000 to 500,000 and stick it to all of those rip off car dealers!!!)

Now you people need to SEND ME MONEY for me telling you about this stuff!! Otherwise, should I be a dealer and I could sell all of you the oil?!