car buying before filing

[Jacinta]

My atty said as long as I can get a lower car payment than I'm paying now then the trustee would be ok with it. He said I can't put down $1000 but $500 would be ok. The dealer came back with 12% interest for 6 years. That is the highest I have ever paid! I guess I could always pay it off early. Plus buying it now I can deduct the sales tax on my taxes next year.

[Brighterdays]

My atty said as long as I can get a lower car payment than I'm paying now then the trustee would be ok with it. He said I can't put down $1000 but $500 would be ok. The dealer came back with 12% interest for 6 years. That is the highest I have ever paid! I guess I could always pay it off early. Plus buying it now I can deduct the sales tax on my taxes next year.

Yeah that is high, how is your credit score(funny question on this board)? I was a new car sales manager a few years ago. The finance manager(guy who does the paper work) makes mony if he jacks your rate up and a fortune on extended warranty(don't waste your money). I would tell him he needs to do better(unless your credit is whacked). Ask him what bank he is going through(if hyundai, see rates below). He will probably leave the room for a minute(called a pause), then come back and either lower a percentage or ask you what rate you want. If its a new car, then I would ask, "what about those 0% or 1.99%? Shop around, prices/rates always go down when you bring competition into the equation.
Here are the current nationwide interest rate specials.

http://www.hyundaiusa.com/financing/specialoffers/special_offers.aspx

When times are tough these people prey on people who aren't familiar with the whole process. His sole job is to charge you as much as he can, especially in these hard times. they try to make every deal count.

If you need any other help pm me.

[StartingOver08]

Don't finance a car for 6 years. 72 months is forever! It is how we get into this negative equity situation to start. Don't buy into this "got to have a new car" mantra.

You can get a very nice car for the $3500 to $7000 range and finance for less than 2 yrs. It is a shame to ruin your fresh start with a long term high interest loan on a vehicle that will be permanetly upside down....

[Brighterdays]

Don't finance a car for 6 years. 72 months is forever! It is how we get into this negative equity situation to start. Don't buy into this "got to have a new car" mantra.

You can get a very nice car for the $3500 to $7000 range and finance for less than 2 yrs. It is a shame to ruin your fresh start with a long term high interest loan on a vehicle that will be permanetly upside down....

I agree with startingover, as I would never finance a car over 36 months. But in jacintas case, she need to get her payment lower than her current car(according to her lawyer). The reason dealers like longer terms is they can hide addons at a lower monthly cost. Ie extendded warranty on a 24 month loan is $90, on a 70 month loan its only $29 a month. Common trick of the trade.

Shop around, unfortunately most dealers are sharks and in this economy they a very very hungry sharks.

[Jacinta]

I do agree. My only concern with buying a used car is my commute is 110 miles a day. About 2500 a month. If I at least start out with a new car and have to go Chapt 13 then the car might make it to the end.

I am shopping around now and acting disinterested for a bit with that dealer. Car buying sucks! Such scheming people. They are hungry. You think they would want to make the sale but they still want to take you and I can't afford to be taken.

I am waiting on another dealer right now. I approached it a little differently this time. I told him to let me know at what rate I am approved at and then I'll let him know if I will be stopping by tonight to deal. I'll keep ya'll posted.

[chad9162]

Have you looked at places like carsdirect.com...even if you don't use them they give you the invoice price. Dealership hate it when you mention carsdirect and try to say the invoice is incorrect. BS!

[Jacinta]

No. I will do that now. Thanks!

[ShouldWeFile]

Jacinta, you are using your driving needs to justify taking on long term high interest rate car debt...

The reason most comsumers are filing in the first place is because of poor credit decisions in the past... don't go into this thinking that you NEED a new car financed over 6 years (a Hyundai at that)

A better decision would be to buy a used Honda for under 10k; it will last a long time... and shorten the term of the loan to no more than 36 months as other have suggested.

I don't know exactly why, but I suspect you will still buy the new(er) car on a long term loan. Update this thread with the details of your purchase after you move forward.

Good Luck

[Jacinta]

I am trying to get a lower rate so I can shorten the term. Right now they are offering 4.9 for 36 months. But I will look at the used ones as well. Honestly, I never bought a used car. Will they sell me something that might blow a head gasket in a week? I like warranties.

[ShouldWeFile]

I might agree with a short term loan @ 4.9 on a new vehicle. What type of vehicle are you considering? Accent, Elantra, or something else?

[Jacinta]

Either Accent or Elantra. Need something good on gas yet inexpensive. I also am looking at the Kia's. I like the 10 yr warranty.

[Brighterdays]

In your case I would go new. In your financial situation you don't need the hassle of repair bills or things like new breaks, tires, blets alternator. If you don't have the credit to take care of things that could pop up out of the blue then Go new. Used car prices aren't cheap anymore as the avergage1-2 year old used car prices are approacing that of a new one. Hyundai are not the best built cars, but they compensate by giving you a very low price.

a $13000 car @ 4.9 for 48 months will run you $284 a month.
Here is a finance calculator to help you figure payment.

http://www.cars.com/go/advice/financing/calc/loanCalc.jsp

Remember you are just looking for a bridge to get you over this difficult time in your life.

[Jacinta]

Yes. thank you! I am going to work with Cars Direct. I'll letyou know. Thank you all for the advice.

[Jacinta]

Well I did it. I did not go through Cars Direct but they did help me. The dealer gave me the 4.9%. It was for 60 month though. They also gave me the $2k rebate when I told them the price Cars Direct gave. So my payments are a lot less and I will have piece of mind. I just hope the trustee doesn't throw the book at me. Oh, I didn't put any money down.

Well I guess there is no turning back now. Next I have to find a place to live that will accept a few greyhounds!

[spearmint]

Well I did it. I did not go through Cars Direct but they did help me. The dealer gave me the 4.9%. It was for 60 month though. They also gave me the $2k rebate when I told them the price Cars Direct gave. So my payments are a lot less and I will have piece of mind. I just hope the trustee doesn't throw the book at me. Oh, I didn't put any money down.

Well I guess there is no turning back now. Next I have to find a place to live that will accept a few greyhounds!

May I ask what sort of credit score you have? I am trying to find a different vehicle before I go into Ch13 but am having an awful time finding something below about 20%