722 Redemption dilemma

[ela805]

Hi guys! I'm looking for my Ch. 7 to be discharged soon. I have NO car. I surrendered my car and I am borrowing a friend's car right now. I applied for a 722 Loan and got a call on my answering machine yesterday stating that I had been approved. When I talked to the guy on the phone Thursday, he said all I'd have to pay down are the taxes. So he's saying that if they sell me a car for $12,000 @ 8% tax lets say, I'll have to pay $960 up front.

Here's my feeling/question:
I'm torn b/c I really need a car. I don't have $960 lying around due to paying attorney's fees and continuing to pay my house payment and such. I'm wondering if I should go for it since it may be difficult to get a car otherwise. Should I go to a buy here, pay here place? Should I try for traditional financing as soon as my bk discharges and hope for the best? Should I take an offer from the mail?

Any words of wisdon would be greatly appreciated. I am bound and determined to do things right this time around. I am downsizing my life to guarantee that I no longer squeeze every penny out of my paycheck. Thanks in advance!!

[OhioFiler]

How long can you borrow your friend's car? Maybe you could "lease" this car from your friend for a modest amount for a few months until you are able to save enough for a downpayment and see your FICO score improve.

[LuciluS]

I agree with OhioFiler; however, a 8% car loan in BK or immediately after discharge is a decent interest rate along with only $960 down payment.

You might check some used car dealership in your area. If you are using US Bank's 722 wholesale replacement program, their website says you find the dealer, if one is available in your area. So, I would not mention the replacement program on initial contact with the dealership.

I don't believe you are going to be able to buy a used vehicle without some $$ as you don't have a car to trade-in.

[OhioFiler]

I think the poster meant 8% sales tax rate.

[bkmaggster]

May I ask, how did you go about surrendering your car? I keep asking and haven't gotten a clear answer. Where did you take it? What kind of paperwork did you sign/receive?

[OhioFiler]

Call the creditor and tell them where to come pick up the car or keep driving until they repo it.

Who is it financed through? If they have a local branch take it there and give the keys and the memorandum title to the manager. Ask for a receipt.

Whatever you do get your personal belongings out and don't have a full tank of gas in it!

[LuciluS]

I think the poster meant 8% sales tax rate.

You are so right! OP didn't state interest rate, which would be much higher.
When I first researched 722 redemption plan, US Bank was the only institution offering it. Wouldn't deal with us as we are an 'old customer' & offered only to new customers.

[ela805]

Thanks guys. To be honest, I didnt actually SURRENDER the car. I tried and tried to work something out with HSBC and they were sick of dealing with me, I guess so they came and got it. There was no call. It was just gone when I got up for work one morning. I filed bk during that "grace period" that you can work something out with them before it's auctioned off. So in essence it was still mine and not yet fully and officially repoed. So since I filed when it was still in that status, it just reads, included in bankruptcy on my credit report and not repoed.

Yes, I meant 8% taxes. I expect a high interest rate but figured I could try to refinance after a year or so of flawless payments. ??

I have been borrowing my friends car ever since. BTW my friend has a son who is now of the age to get his driver's license and the car is for him. She graciously let me use it til I can get something else but they are waiting for it. I've had it for 3 months already!


I do have an uncle that is selling a car for $2500. I've asked through my grandmother if he would allow me to make payments to him, but I haven't heard anything back. He's hard to get in touch with.

I feel like I may be screwed.

[LuciluS]

I do have an uncle that is selling a car for $2500. I've asked through my grandmother if he would allow me to make payments to him, but I haven't heard anything back. He's hard to get in touch with.

I feel like I may be screwed.

Check the your Local and/or State Newspaper. I usually don't read the For Sale Ads as we don't have any money This past Sunday, I was bored & read the Help Wanted and Used Car Ads. Lots of private party for sale on used cars.

Just a Suggestion. Hear ya on 'maybe screwed'

Luci

[OhioFiler]

If you're pre-approved for the 722 redemption you're not screwed. Maybe you can negotiate with the seller or provide something else as a trade-in in lieu of the $960 downpayment. Think outside the box. No one is going to offer you all the options. What the dealer offers you is the option that fits him best.

[ela805]

Think outside the box. No one is going to offer you all the options.

You're absolutely right. That was the kick in the a$$ I needed, thx. I'm going to put my big girl panties on and return the call the the 722 guy. I'll let you know how it goes.

[aces67]

You're absolutely right. That was the kick in the a$$ I needed, thx. I'm going to put my big girl panties on and return the call the the 722 guy. I'll let you know how it goes.

Yes check it out thoroughly and just see what happens.

You've made me a little nervous though. I plan to keep my current vehicle but it is through HSBC. I do hate, hate, hate dealing with them.

[ShorterSN]

There's always options.

Not saying it would work for you, but after my wife's '05 Grand Am was repo'd through Ch7, I watched the local online classifieds like a hawk. We hardly have any money, but I was determined. One Saturday at 8am, I refreshed again and saw a just-put-up ad; a 1999 Saturn SL1 for $800. Got there before anyone else, talked them down to $500 (the AC didn't work, and had high miles) and drove it home.

Oblig. car pic:

http://www.myplanet.net/memero+bigplanet.net/1999_saturn.jpg

$100 later, the AC is recharged, it passed safety and emission tests, and is titled / registered. It gets about 38MPG highway. It's not a powerhouse, it has a few dings, dents, and nicks, but it's reliable, clean, and there's no monthly payment other than insurance ($26). If it lasts a year, it's paid for itself ten times over. If it lasts two... by then our credit will be healthier, and we can decide if we want to go back to owing instead of owning

[aces67]

There's always options.

Not saying it would work for you, but after my wife's '05 Grand Am was repo'd through Ch7, I watched the local online classifieds like a hawk. We hardly have any money, but I was determined. One Saturday at 8am, I refreshed again and saw a just-put-up ad; a 1999 Saturn SL1 for $800. Got there before anyone else, talked them down to $500 (the AC didn't work, and had high miles) and drove it home.

Oblig. car pic:

http://www.myplanet.net/memero+bigplanet.net/1999_saturn.jpg

$100 later, the AC is recharged, it passed safety and emission tests, and is titled / registered. It gets about 38MPG highway. It's not a powerhouse, it has a few dings, dents, and nicks, but it's reliable, clean, and there's no monthly payment other than insurance ($26). If it lasts a year, it's paid for itself ten times over. If it lasts two... by then our credit will be healthier, and we can decide if we want to go back to owing instead of owning

You got a great deal there! My SIL bought a Saturn used. That was one tough car. It lasted forever!

[ela805]

There's always options.

Not saying it would work for you, but after my wife's '05 Grand Am was repo'd through Ch7, I watched the local online classifieds like a hawk. We hardly have any money, but I was determined. One Saturday at 8am, I refreshed again and saw a just-put-up ad; a 1999 Saturn SL1 for $800. Got there before anyone else, talked them down to $500 (the AC didn't work, and had high miles) and drove it home.

Oblig. car pic:

http://www.myplanet.net/memero+bigplanet.net/1999_saturn.jpg

$100 later, the AC is recharged, it passed safety and emission tests, and is titled / registered. It gets about 38MPG highway. It's not a powerhouse, it has a few dings, dents, and nicks, but it's reliable, clean, and there's no monthly payment other than insurance ($26). If it lasts a year, it's paid for itself ten times over. If it lasts two... by then our credit will be healthier, and we can decide if we want to go back to owing instead of owning

Wow! Congrats on the super deal. I've been scanning Craigslist daily. I haven't come across any super deals like the one you found but there have been some good ones. Thx. I'll let you guys know how this journey ends.