New car

[sap720]

Me and wife are in the process of chapter 7, I'm wondering how hard is it to finace a new car after bk .

[gmk]

Within weeks/days of filing we received all kinds of car purchase deals from local auto dealers in the mail. They all referenced our BK. What the interest and terms are I don't know but I assume they would be high? So idon't think you'll have problems buying a new car but it could be at usurious rates.

[DebtHater]

I too received correspondence after filing and for the fun of it I made a few phone calls. If I remember correctly the interest rates offered were in the 15 to 20% range.

I personally think it's irresponsible for anyone that had just filed BK to commit to car payments right away. What I'm doing is paying myself a car payment every month ($300.00) I'm estimating by this time next year I'll have about $5000 saved. That along with my current car as a trade in I should be able to buy a new (for me) car for about $6,000. This way I'll avoid high interest rates and give myself interest keeping the "payments" banked.

[adm]

I personally think it's irresponsible for anyone that had just filed BK to commit to car payments right away.

I know you were just making a personal statement, but there's lots of reasons for needing a new car during/after BK- so gettting one even w/high rates may be the only option.

I will use myself as an example We have 2 cars; one paid off (with 200K+ miles) and a newer car w/reasonable payments. We need 2 reliable cars (we have 2 young kids and I have a very long commute). I tried to get financing right before filing but was unable to qualify for any car loans due to high debt-to-income ratio (DUH!) but I will try again after discharge b/c we will be up a creek when the old car dies. It's just our reality. I hope to qualify and then maybe after a year refi w/our credit union. The problem is when I read the fine print on road loans, etc all say you can only have 1 car payment (for them it's obvious why) and that's where I have a problem b/c my name is on both cars and I can't get off the one w/the payments (plus I am the only one employed right now so it def needs to be getting the loan).

Anyhow, just wanted to share a circumstance that I don't see a irresponsible but an example of...life?

[adm]

ps- and public transport isn't a viable option for 1) where I work (the bus would be 3 hrs each way) or 2) for the routes we go for school, daycare, etc.

[DebtHater]

I know you were just making a personal statement....

Correct!

Regardless of what happens you do have to be careful of applying for loans multiple times close together. This could work against you in getting one.

[ROB37LAW]

Correct!

Regardless of what happens you do have to be careful of applying for loans multiple times close together. This could work against you in getting one.

As long as your multiple auto loan inquiries are within a 14 day period, it's only counted "once" in regard to your score. You're expected to rate shop for an auto loan.