WE GOT APPROVED 1 day AFTER BEING DISCHARGED!

[fltoo]

I am a very caring person and actually have made alot of friends that I talk to on a personal basis off of this web-site and by phone......

I guess its ok to voice there opinions but I cannot say anything. You of all people have been rude to ALOT of people on here. Stop being a bully. I have a right to say my opnion just like everyone else. I do not have to agree with people just like they do not have to agree with me....

This will be my last comment on this matter.
Have a great day..........

Snap. Maybe my connotation of "rude" is different than yours? A LOT different.

[Doghouse]

Really, everyone's situation is different. My last 3 cars I have bought new. First one I kept for 9 years(4 yrs payment free). Second one for 11 years (6 yrs payment free). My 3rd car I also bought new and am 3 yrs into a 5 yr loan (and the car does have equity in it). Will not re-affirm but plan to renegotiate to lower payments.

Point is everyone's salary and affordability level is different. Responsible spending after BK is key. Absolutely nothing wrong with getting a new car after bk, imo, if the payments are affordable. Now that we may be debt free after bk does not mean you live life like a hermit. Enjoy your stress reduced life. Just do it responsibly and within your affordability capacity.

[IBroke]

I'm new here and I don't want to cause trouble, but I'm not sure why everybody is so happy about someone starting the debt cycle right after bankruptcy? A brand new car even at 0% interest has got to be in the $400/mnth amount. In 10 months you could buy a 4,000 car in cash. You'd have a decent car, and another 4 years of an extra $400 a month in cash that you wouldn't be spending on a payment. It's just me, but if and when we get pulled out from this crushing debt, I'm going to do everything in my power to never do it again. Again, I don't want to rain on anybody's parade, everyone has been so nice to me on here, but I guess I'm scared it will be too easy to get back in the place we're trying to get out of, and I want to remind myself how much I hate it.

First of all, the monthly amount you come up with is quite high. There are cars out there that cost less than $30K - even new ones.

Second, you have to have the option of being without a ride for a whopping 10 months. What is she supposed to do? Walk for 10 months? Following that logic, she could save that money for the next 10 years and should buy a house instead. That makes more sense.

And third, don't underestimate the repair- and maintenance costs/risks of your suggested $4000 car. A new car comes with a warranty - what about that $4000 beater? Who will be paying for the new brakes, new tires, a potentially broken transmission? If you own an old car, it certainly doesn't mean that you're good to go and have no monthly expenses. Consider a new car to be some kind of insurance. I know what I'm talking about - being stuck with an old ride.

[blankslate]

Jessegirl - congrats on getting something good right after bk. I hope it's the right path for you and works out completely.

I just posted in the "buying a car after bk" forum about this same subject. I'm going for a "gently used" vehicle with $4000 and debating on whether or not to just pay cash for one or finance $1000 with the $4k as a down payment.

I'm wrestling myself with need vs want and being practical. In LA I don't really NEED a car. I had to take the metro to work for a day while my current POS was at the mechanic. It really wasn't that bad and only took about 10 min more than driving to work. My daughter is a teenager now so she could take public transportation too. When I was 19, divorced, had a baby and was going to college while doing an internship and working part time - I had no car at all. Those were long days and I walked through a lot of rain and snow but I did it all without a vehicle. I walked my daughter in her stroller to her day care and took the bus to everything else. The grocery store was 1 mile away and I could cram two bags of groceries in with my daughter in her stroller. It was just how things were and what I had to do and I didn't think twice or cry about it. I enjoy having a car now and not having to worry about missing the bus, but thanks to where I live it isn't an absolute need. On the weekends I don't even drive. Everything is within walking distance and I have a cart to carry things home from the store. I think back to how awesome my figure was back in those days and think maybe all of that walking and pushing the stroller wasn't so bad ;) I guess that's something good that comes of struggling my way through life. I know exactly what I can live without and how to get through these rough times.

[eddiep]

I am happy for you Jessegirl. I find it encouraging that you were able to get 0% interest. I for one am concerned about my credit score and ability to get an affordable loan in the future if I need one. I have learned alot from filing for bk, lessons I will never forget, but being able to get a reasonable rate is one way of avoiding getting back into this mess if I ever take out a loan again. I am keeping my car and my house, both have loans, I can afford them, and that is my choice, does that mean I am headed for trouble again?

[B65]

I would say

If you can afford your house and car now, then I would say yes....

I was discharged a few months ago and I cannot afford my house.... I am letting it go and have found a cheaper rental..it is not nice having to take my children from their home but I have to do what i have to do for my future. We need a new car because we have been bitten with old ones and hubby drives to work 3 hours a day with it so without that he cannot work.
Every case is different, We did our budget and worked out what we can afford to spend on cars and pay utilities and bills and after putting away $800 a month in savings we do not touch what was left for a house.. and we found a rental in that price. I will never use a credit card again and if it means leaving my home so I can save i will.

You said you can afford both so I think you answered yourself Good Luck!

[meinnc]

I agree with all sides of this discussion.

I personally am glad Jessegirl shared her story because that's what this forum is all about- sharing what could be useful information. I'm glad to know that if I needed it, I might be able to go out and get a 0% loan from FORD for a new car. Like somebody said, everyone's situation is different, and while I personally am a fan of buying a few years old vehicle and driving it into the ground, I can also see how in many situations, buying a new car isn't the worst decision in the world.

Plus, Jessegirl's story gives hope to many people that there IS life after bankruptcy......

On the other hand, I agree with the idea of being cautious with new debt after bankruptcy. With today's economic climate, I think it will be harder for people to jump back into debt, seeing that most places are not into loaning money right now, good credit or not. But, yes, I agree that we should all be cautious of getting into new debt, especially considering the fact that we can't file again for 10 years. There's no way in HADES that I want to get myself back into that situation of not being able to pay my bills and knowing that I can't even declare bankruptcy to get out of it. NO THANK YOU!!!!!

[mermaids614]

I'm new here and I don't want to cause trouble, but I'm not sure why everybody is so happy about someone starting the debt cycle right after bankruptcy? A brand new car even at 0% interest has got to be in the $400/mnth amount. In 10 months you could buy a 4,000 car in cash. You'd have a decent car, and another 4 years of an extra $400 a month in cash that you wouldn't be spending on a payment.

I just joined this forum a month or so ago. What I've noticed is that lot's of people assume that EVERYONE who filed bankruptcy is someone who had ton's of credit cards and just charged a bunch of crap. I saw the thread on here where people listed their debts, and several people charged hundreds of thousands of credit card debt. That's a "High Roller" lifestyle, and I've never had that. That was not what I filed for. I was never good with credit cards. I got my first credit card freshman year of college with NationsBank (Now BOA). This was back in 1995, when you could just sign up for a card on campus with some guy outside of class. The limit on that card was $700.00. I also was sent an Eddie Bauer card I never applied for, as I never shopped there. It had a $500.00 limit. I bought a watch from Eddie Bauer, a back pack and a few pair of jeans--yes, I remember!LOL I started missing payments and such probably within the first year, and essentially ruined my credit by age 20. I never made it to a point where I could get high limits on cards. The only few credit cards I could get later on were those predatory ones that approve you for $300.00 limit, yet only $50.00 is available on the card when you receive it due to fees. I ended up never even paying one of those back to the limit and it charged off without me ever using it.

I got into a cycle of cash advances.........paying just the high renewal fees every two weeks. I would literally spend my lunch hour every pay day, driving all over town, paying on 3 cash advances, then It got so bad that I got a few online, and the fees are even higher. This went on for years. Figure anywhere from 3 to 6 cash advance renewals costing at minimum $30.00 to renew every two weeks? Just to borrow $200.00. I do not feel guilty at all about putting 3 of those things in bankruptcy because I literally spent thousands on them in a 6 year period. Trying to pay a car payment, rent, other living expenses, supporting a child on one income, is hard to do with all the cash advances. I'm rambling, but I'm just saying, not everyone who files bankruptcy does so because they blew thousands of dollars on vacations, high-end handbags, plastic surgery and electronics. I've never been able to afford many luxuries. Cable tv is a luxury to me. As for the "you could save $400 a month and pay cash for a car".....I don't know about you, but I need a car. I can't be without a car for months trying to save up to pay cash for one 6 months down the line. Times are hard. I'm lucky if I can save $80.00 a month, let alone $400.00. I'm sure it's possible, but I'm sure the odds of a car you paid $4000.00 not needing costly repairs is probably slim. Of course new cars can have problems as well, but most people who aren't wealthy have to rely on auto financing.

[SMinGA]

Mermaids, I agree to some extend. I imagine most bankruptcy cases are a combination of poor decisions and 'life happens' type of events. The balance in there will vary from person to person - as to how much was 'poor decisions' and how much was due to 'life happens'.

I agree with Cantwait in theory, but the extreme (save up and pay in full) is not realistic for most as you point out. But that does not mean a brand new car is a good idea. Not saying you do, but just wanted to mention there is an inbetween. Our next car will be a 3-4 year old used car, for about $10k or so. Reasonable payments, still under factory warranty for the major stuff. Decent gas mileage but nothing fancy. Not buying today, but researching now so that when the time comes (and our $3500 cash car-from a one time bonus-costs more to maintain than is worth putting into it) we'll have done our homework.

[mermaids614]

Mermaids, I agree to some extend. I imagine most bankruptcy cases are a combination of poor decisions and 'life happens' type of events. The balance in there will vary from person to person - as to how much was 'poor decisions' and how much was due to 'life happens'.

I agree with Cantwait in theory, but the extreme (save up and pay in full) is not realistic for most as you point out. But that does not mean a brand new car is a good idea. Not saying you do, but just wanted to mention there is an inbetween. Our next car will be a 3-4 year old used car, for about $10k or so. Reasonable payments, still under factory warranty for the major stuff. Decent gas mileage but nothing fancy. .

Same here. I have never had a brand new car, only newer used. But I would like to get something about 3 to 4 years old, with somewhat low miles, and decent with gas mileage. I am converting to get rid of my 01 Jeep because it needs a transmission, along with other things.

[JackBondLove]

I'm wondering if you had the option of a cash rebate in lieu of the 0%. IOW, someone with good credit could get a car loan from a bank for 5%, and take advantage of the cash rebate. Obviously the regular underwriting market for a person in your situation is 17% (probably a little lower than that for a new car), but Ford Credit has decided that if you take one of their new cars, they will eat that interest. I think this is more of a situation of very desperate car manufacturers then underwriters determining that you are actually a good risk worthy of a low interest rate.

But hey, good job in stripping the lease and getting a new car!