Need an auto loan right after BK7 discharge

[Klesko]

I thought I was going to be able to pay cash but I am not going to have the time we need a car pretty soon after discharge. We need to replace one we let go a few months before filing. I will have about 5k to put down, and I want to keep my payments low so about a 14-17k car.

Will it be a problem getting a loan a few days or week out of discharge? Also who should I look at going with?

[RBisDebtFree]

I was wondering about that myself. We are now decided whether to 1) buy a car outright if we can and if we can't 2) finance the car with a sizable cash reserve left on hand.

If we go the financing route, I would try local credit unions, especially the small ones with one, two or three branches -- they will be most willing to work with you, I have small CUs being very interested in growing the business so they would be willing to do creating financing. I would recommend that you only get a loan through a bank or a CU not at the dealership or some questionable financing companies -- it might cost you much more in the end especially that they know now you don't have the BK option for next 8 years...

[TBLTZ]

If i remember correctly a while back(searching forum) a person was able to get a car loan from carmax a few weeks out of bk for a decent interest rate in the teens. Im sure other people can chime in.

[aces67]

We were discharged in July we just got approved with Cap ONe and Chase. We went with Chase. Our interest rate is 12.9% with 1500 down.

[NoMoreCards]

Another option to consider is buying a used car for the 5K you planned to put down. You should be able to find something decent to last a while, and not have car payments. Another good point about this is you will not be required to carry the full coverage insurance if you decide not to.

I suspect your interest rates coming right out of BK will be fairly high, and just wanted to give you another option to consider.

[Klesko]

I have been debating just buying something with 5-7k but I really hate to spend that and on something with 90k+ miles and it have issues and then go to trade it in or sell it next year and end up eating 3-4k that we put down.

[NoMoreCards]

If you go that route, look around. I just recently seen a 2000 Grand Marquis with 70K miles on it, for 3500. These cars tend to run a few hundred thousand miles before they die. The car itself blue booked at about 8K.

There are wonderful deals out there, but you gotta look around and be picky.

[ecsclb1724]

we're going to be in the same boat, we don't WANT a new car, we're going to NEED one. I'm pregnant with baby #3 and 3 carseats will not fit in the back of my Camry (and I am not willing to forgo my 4 year old's safety by moving him to a booster seat before I feel he's ready). We'll need a minivan and will need financing. I'm praying someone will work with us, we're filing early next week, probably won't get discharged until the end of Jan, baby is due beginning of April, so we'll have about a 2 month window to get a new car. Scary!

[startingovr]

I got financed one week after discharge. My interest rate is 13.9% and I had to put $1000 down with Wachovia of all places. Believe it or not, when they pulled my credit report my score was 660. I ended up going to one of the larger dealerships in town and talked to the finance director. He personally handled everything for me and it was a very painless process. I hope this helps.

[mkuki]

...I will have about 5k to put down, and I want to keep my payments low so about a 14-17k car.

Not to be insensitive, but You are filing BK due to inability to service debt, but then you jump right back into debt again...LOL!

I bet the debts incurred were never your fault to begin with, right?

You need to listen to this advice below...

..I just recently seen a 2000 Grand Marquis with 70K miles on it, for 3500. These cars tend to run a few hundred thousand miles before they die. The car itself blue booked at about 8K.

There are wonderful deals out there, but you gotta look around and be picky.

^^ This is what YOU REALLY NEED to do. I went and purchased an 2004 MPV with 68K miles for $5000 in March'08 - So far ZERO trouble, and now has 78K miles from happy family trips.

Yesterday, 2 days after my 341 meeting, I just purchased a SUPER CLEAN 1999 Buick Century, fully loaded with 75K mile, all regular maintenance (Belt & water pump done) for a measly $1,800. KBB/NADA is at $4,500. I plan to drive that car for 2 yrs then sell it for $1,500. Total depreciation = $300.

Best case scenario is that I spend $0-500 on repairs; worst case is that I spend $2500 on a new motor. So, all said and done, I still dont have a note to service every month...or get in debt all over again..stress free, and happy in a reliable geezer ride....life is good

Your $5K could take you a long way, only if you took the blinders off. just my $0.02. Good luck

[RBisDebtFree]

My middle score is 560, and it doesn't say discharged on my credit report yet -- I wonder if I'll be able to get financing and if I will be able to, I wonder what terms I'll get. Anyways, there is hope!

[Klesko]

I guess another question would be, do you need the discharge showing on your credit report before even attempting a loan?

[RBisDebtFree]

I was told that banks want to see your discharge papers as your proof of discharge anyways, so it looks like it doesn't matter...