Is it possible to get an auto loan for 36,000 after 5 months of BK discharge?

[Yunior4GT]

Hello,

I was wondering if anybody has been able to get approved for an auto loan after ch.7 BK discharge.

I know today you can get approved almost anywhere,(with mostly high interest) but can you get approved for a loan of 36,000?

Can you try to get an interest rate between 6%-8% if you were to put a down payment of $7,000.

Keep in mind that the car is going for 39,420 and after taxes and fees and the down payment of 7,000 it goes for $36,000.

I've heard many people online stating that they have been able to get even 4% of interest after applying for a car loan right after BK discharge.

Anyways, let me know what you guys can share on this.

Thanks

[TXskyblue]

You just discharged all your debt. Are you sure that you want to get into debt again and that a 40k vehicle is a good investment?

COAF may be willing to finance it.

[Drazil65]

Anything is possible and all you can do is try. A lot will depend on what your credit looks like (and what it looked like when you filed). I have to agree with the above post, a $40k vehicle? Really? Hopefully you learned something with a chapter 7 but if not, good luck to you!

[Yunior4GT]

Anything is possible and all you can do is try. A lot will depend on what your credit looks like (and what it looked like when you filed). I have to agree with the above post, a $40k vehicle? Really? Hopefully you learned something with a chapter 7 but if not, good luck to you!

Thanks for your replies.

I need a car as I dont have one right now. This is why I need to get into an auto loan. You may ask yourself why get into a 40k car or why not something less expensive or why not a used car. Well, one is because I want to buy a new car which will stay in the family for years, I am not looking to be buying different cars every 4 years like the average people do. Secondly, the only reason I got into financial problems was because I overwhelmed myself with credit cards and debts as a teenager. Me getting this car will be the only debt i will have besides my rent which is 600(splitting rent of 1,200 with my brother) and some minor utility bills. So yes, I know what I am doing this time around. I think the point of getting BK is to get a fresh start and do things smart and step by step. It doesn't mean you can't get into another loan. Just got to make sure you be smart and be positive that you can afford it and have plenty left over. Yes, 40k is a big loan but I know I can afford it and still have huge amount of money left over in my account. Plus I plan to payoff the car within in 4 years and like I said, keep it for as long as possible as I do not plan to buy another car for myself in many years. So as for me, I intend to do things step by step with my new opportunity. If I can get this loan then I will work on oaying it off early while I wont get into any other debts. Once it is paid off then I can get into whatever other little thing I want to buy with credit like a tv, or a living room sofa. Step by step and one thing at a time. This is the mistake I made the first time where I was just buying too many things and letting debts pile up. Rest assure it wont happen this time around.

[Yunior4GT]

You just discharged all your debt. Are you sure that you want to get into debt again and that a 40k vehicle is a good investment?

COAF may be willing to finance it.

Do I just apply online or through the phone? Which would be best or is it all the same?

[LadyInTheRed]

Once it is paid off then I can get into whatever other little thing I want to buy with credit like a tv, or a living room sofa. Step by step and one thing at a time. This is the mistake I made the first time where I was just buying too many things and letting debts pile up. Rest assure it wont happen this time around.

If you are already planning on using credit for tvs and sofas, you haven't learned enough. Those are purchases you should only make when you have the cash to pay for them.

I don't buy new cars every 4 years and I want a car that will last. I paid $17K, including taxes etc., for a make of car that has a good track recorded of holding value and running for years and years. You know what you can afford and there is nothing wrong with satisfying wants that you can afford, as long as you don'lt use unsecured credit to do it. Just don't get in the habit of justifying your wants with rationalizations. The reasons you give don't require a $36K car.

How much you can borrow will depend largely on your income.

[avengers]

Hate to pile on, but buying a $40k car right after bankruptcy is incredibly stupid. Yes, you can afford it now. Can you afford it a year from now when you get laid off? You plan on buying a TV and furniture, wouldn't you have more money to buy TV and furniture if you paid $20k for a car?

Look, I'm not saying don't buy a car. I'm not even saying don't buy a new car. I'm saying don't buy a $40k car. There's a sweet spot for cars that starts right around $20-25k. Above that, you're really not getting anything more than status.

If you learned anything from bankruptcy, you would not even be thinking about buying a $40k car. I'm filing this month and I need a car. Guess how much I'm budgeting for it? $7k cash. $8k cash if I decide to splurge. A 2007-2008 used car.

A $36k loan at 8% for 4 years is $805/month. Even when I was making $200k/year, I wasn't paying $800/month for a car. That's just stupid.

[kornellred]

I just have to jump on the bandwagon here. The automotive playing field has been level for quite a number of years now. All late model cars are ultra-reliable if taken care of properly. Some cars are so darn reliable that you will get bored with driving them before anything major goes wrong.
Nobody cares what you are driving. And if they do, they do not care about you, so it still makes no difference. Get an economy car. You will be surprised how nice they can be.

[Yunior4GT]

Hate to pile on, but buying a $40k car right after bankruptcy is incredibly stupid. Yes, you can afford it now. Can you afford it a year from now when you get laid off? You plan on buying a TV and furniture, wouldn't you have more money to buy TV and furniture if you paid $20k for a car?

Look, I'm not saying don't buy a car. I'm not even saying don't buy a new car. I'm saying don't buy a $40k car. There's a sweet spot for cars that starts right around $20-25k. Above that, you're really not getting anything more than status.

If you learned anything from bankruptcy, you would not even be thinking about buying a $40k car. I'm filing this month and I need a car. Guess how much I'm budgeting for it? $7k cash. $8k cash if I decide to splurge. A 2007-2008 used car.

A $36k loan at 8% for 4 years is $805/month. Even when I was making $200k/year, I wasn't paying $800/month for a car. That's just stupid.

Clearly did not answer my question but thanks for giving me your personal opinions.

If I'm saying that I want a 40k car is because I know i can afford it.

Not like before where I overwhelmed my self with credit card debts.

Did you read my question before you posted a reply on here?

The car will be financed for 72 months for a total of around 35,000.

So where do you get from that I would pay more than 800 dollars a month for a car.

Anyways, thank you for your opinion. Even though it did not answer my question.

[avengers]

Clearly did not answer my question but thanks for giving me your personal opinions.

Did you read my question before you posted a reply on here?

The car will be financed for 72 months for a total of around 35,000.

So where do you get from that I would pay more than 800 dollars a month for a car.

In post 4 you said, "Plus I plan to payoff the car within 4 years."

[Yunior4GT]

In post 4 you said, "Plus I plan to payoff the car within 4 years."

Yes, i plan to pay it off in 4 years because I will be paying extra every month to get rid of it quickly. But not, that I am trying to sign a loan for 4 years paying 800+

Sorry if there was any confusion.

[TXskyblue]

I just want to let OP know that one needs to wait 8 years to file a second chapter 7 bankruptcy. That may be the most helpful information to give in a thread like this.

[Drazil65]

I just want to let OP know that one needs to wait 8 years to file a second chapter 7 bankruptcy. That may be the most helpful information to give in a thread like this.


My thought exactly! Life happens and things rarely go smooth, rarely....you are obviously young and I am sure you believe you have it all under control....until you lose that great JOB, have a medical issue or break a leg (something that prevents you from working), room mate moves out and you are stuck, you girlfriend gets pregnant, whatever life has in store. All we are trying to tell you is it is imperative you take steps to avoid a tight or impossible situation in your financial future. It can change so very quickly for you, you have no idea!

[avengers]

Yes, i plan to pay it off in 4 years because I will be paying extra every month to get rid of it quickly. But not, that I am trying to sign a loan for 4 years paying 800+

Sorry if there was any confusion.

You realize that's the same thing, right?

Running numbers through http://www.bankrate.com/calculators/...alculator.aspx

A 6 year loan at 7% for $36,000 gives a payment of $613.76 per month. In order to pay it off in two years, you need to pay an additional $250 per month. Meaning you're paying $863.76 per month. I wasn't a math major, but that sure seems like 4 years of $800+ payments to me.

[Crawley]

To answer your question, probably not. For the bank, it's a risk question question. That and you'll need to have re-established some credit after the bankruptcy and 5 months out you will not have reestablished enough to qualify for a loan of that size. if you don't mind me asking what kind of vehicle were you looking at the cost $40,000? I've been selling pre-owned vehicles for years and if its 40,000 new, you can get it in a year or two old for thirty thousand or less. Depreciation is a *****, especially on more expensiversatile cars.