Buying car BEFORE bk

[toomuch]

I haven't had a car since June. I've been using my dh truck when I need to but he works rotating shifts. I'm obligated to 6 weeks of radiation tx so I've been renting a car.

I finally got up enough nerve to ask my folks to co-sign. Man, was that ever hard. They said yes. I have asked them twice in my life to borrow money, which I paid back promptly.

So I had my eye on an 03 Camry with 60K miles. They are asking 10,999 for it which is below retail value.

They ran it through GMC....both me and my stepdad. I have a cs of 514 and his is perfect.

They came back with 9% interest. But, they are hemhawing around about selling it. I did a carfax and it looks good there. There was a slight vibration when at a redlight. So they said they'd take a look at it. That was Thursday evening.

Meanwhile, I stopped by another dealership and found another car I liked.....an 05 Camry with 70K miles. They told me they would *throw* in gap coverage and 100,000 mile warranty

So after spending half a day there (I loathe buying a car), they came back with a 72 month payment plan, $305 a month.....at 13.8% interest. I was furious. For one thing, they didn't *throw* anything in......it was all listed. Then they said because I'm on the loan, it brought the total score down. I can see 13% or higher if I was doing it on my own, but I'm not. Plus I have 3K to put down.

The loan was with CitiFinancial. I think it dawned on me right then and there how drastically my life has changed. No pity party, just a very rude awakening.

I wanted something I could get an extended warranty on (odometer tampering is a big thing) and feel safe traveling alone.

Something doesn't feel right witht the 03 Camry....the first one I was approved for at 9%. But you all know how stressful buying a car can be so maybe I'm being parnoid. I do know the car has been at the dealership since July and with low miles like that, in mint condition, it should have been sold long before now. Of course you can't get an honest answer about anything.

Anyway, just had to vent......and hopefully get some tips in the process.

Thanks for reading,

Too much

[JRScott]

If you are looking to buy a car before BK make sure it is a car that you can get through your states exemptions. If it was me, I'd take the 3k dollars and try to find a good used car in the local mags and buy the car. I'd try to probably keep it under 2k for the bk though. Depends on your state's exemptions.

[keepmine]

Ask the dealer to let a mechanic you trust inspect the car.

[WantToBeDebtFre]

Trust your instincts! If something doesn't seem right with the car don't buy it. I know it's hard to make a decision about such a big purchase but you'll be kicking yourself is you go against your instincts and then you have huge problems with it.

[toomuch]

If you are looking to buy a car before BK make sure it is a car that you can get through your states exemptions. If it was me, I'd take the 3k dollars and try to find a good used car in the local mags and buy the car. I'd try to probably keep it under 2k for the bk though. Depends on your state's exemptions.

I called the attorny's office and was told by the paralegal that Ga state exemption is 3500. So I was planning on buying the car on a 5 year plan, but paying it down a few thousand before filing.

You can't get a decent car with low miles here for 3K. I thought if you own payments on a car, you can reaffirm and include those payts in bk.

Thanks,

Too Much

[Bandit]

Something doesn't feel right witht the 03 Camry....the first one I was approved for at 9%. But you all know how stressful buying a car can be so maybe I'm being parnoid. I do know the car has been at the dealership since July and with low miles like that, in mint condition, it should have been sold long before now. Of course you can't get an honest answer about anything.

Anyway, just had to vent......and hopefully get some tips in the process.

Thanks for reading,

Too much

If it were me trying to do it the way you are and for what you need it for, I would be heading straight to the new cars lot & be getting a loan for 5 years at 0 zero % interest before dealing with that kind of interest & haggle. I don't know if you can do that though.

Even with new cars there is no absolute guarantee there wont be problems on the road. I see just as many newer cars broke down on the road as I do the old ones.

60k miles for an '03 is not that low of mileage, it is above average & 70k miles for an 05 is definately not low miles.

[Bandit]

If you are looking to buy a car before BK make sure it is a car that you can get through your states exemptions. If it was me, I'd take the 3k dollars and try to find a good used car in the local mags and buy the car. I'd try to probably keep it under 2k for the bk though. Depends on your state's exemptions.

That is how I would go also. It would still make a good trade in later.

[CindyLou]

If your step dad is co-signing and you are going to reafirm then go to a new car dealership (american made is easier to deal with...Ford is very credit freindly) and look at something entry level like the new Focus. You will get a brand new car base model for a around 14,000 at probably much less interest!!!! Probably at around the same monthly payment!! Get away from the used car lot FAST!!!!!! Its worth a shot at the new car lot. Also try the capital one blank check even on your own. You'd be surprised what you come up with!!!

[Bandit]

If your step dad is co-signing and you are going to reafirm then go to a new car dealership (american made is easier to deal with...Ford is very credit freindly) and look at something entry level like the new Focus. You will get a brand new car base model for a around 14,000 at probably much less interest!!!! Probably at around the same monthly payment!! Get away from the used car lot FAST!!!!!! Its worth a shot at the new car lot. Also try the capital one blank check even on your own. You'd be surprised what you come up with!!!

Hey I drove that little focus for a week last month. Ford had my truck in for repair & they gave that to me for a loaner. I was impressed with the pickup in the front wheel drive & the space inside for a small car. It handled very well. If I did not know better, I could have sworn they were trying to sell me one instead of loaning it

[SinkingFast]

Another thought for you is to apply for your own financing. See what kind of deals you get offered.

CapOne and RoadLoans both have a Blank Check program. You're preapproved up to a certain $$$ limit so you know the price range you can shop in. Another option is Christian Community Credit Union. There's a thread in the "Buying a Car" section of the Forum about them.

Go with your gut about that one car. If it's supposedly sooooo Cherry, it wouldn't still be sitting on the dealer's lot after all this time.

[Runnin on empty]

What the others have said. My wife and I both needed to replace our decrepit vehicles, so we consulted with our BK attny. He said that as long as we "don't go out get Cadillacs" that we would be fine and could reaffirm. Our credit scores are excellent (at the time I was 750-ish, the wife 700), so we both were able to get into brand-new 2007s at very good rates.

The way I look at it is this, we needed to make sure our transportation needs will be met for the next 3-5 years. As Bandit points out, there are no guarantees that new cars won't have issues as well, but it's always nice to know that factory warranty is still there, covering you.

If you're talking about a 72 month payment plan, $305 a month.....at 13.8% interest, it would make more sense to go new. American automakers are falling all over themselves to practically give away cars. You'll end up with a 60 month loan, a payment at or below the $305, and you'll have a much better vehicle. Not only that, but I'd be willing to bet your folks would feel better about co-signing on a loan for a new car.

Good luck.

[Runnin on empty]

Go with your gut about that one car. If it's supposedly sooooo Cherry, it wouldn't still be sitting on the dealer's lot after all this time.

Nail -> head

I always love how "stealerships" (as I call them) try and pull a fast one like that. I've seen cases where a car has been sitting for 6, maybe even 12 months, but they refuse to budge on it, because they're waiting for the right sucker to come along.

[toomuch]

Hey I drove that little focus for a week last month. Ford had my truck in for repair & they gave that to me for a loaner. I was impressed with the pickup in the front wheel drive & the space inside for a small car. It handled very well. If I did not know better, I could have sworn they were trying to sell me one instead of loaning it

I've been renting a focus for 3 weeks now. It has amazing pick up. I thought about buying one.
Originally when I asked my stepdad to cosign, I told him I would be paying it off within a year or so, explaining about bk and equity.

Since I have cancer, and although I believe in my heart I will be cured, I wonder if he thinks so. I wouldn't want him to be stuck with a large amount dangling over his head for 5 years.

I still don't know if we are going 7 or 13 bk yet. We are borderline 7. I am so confused now about all of this. It's stupid to keep renting a car at $200 a week.

As for my own financing, I don't think they will touch me with a ten foot pole. My credit score is 514. Probably less now that the auto inquiry is on there.

I am so desperate right now and just don't know what to do.

Thanks for your help.

Too Much

[SinkingFast]

The internet applications are pretty much the same as face to face. Your Dad's score would be considered there same as it's already been.

You can have a cluster of inquiries and it will be viewed as 1. As long as they're all auto loans and within a short period of time. Lots of people auto loan and mortgage loan shop before they choose their lender. So don't let one pull stop you from seeing what else is available to you.

[LoserBoy]

when you guys are talking about "state exemptions" aren't you referring to "equity" in the car? for instance, if you put $5000 down on a $20k car and financed the rest, you'd have $5000 in equity---which is more than most states will allow.

BUT, if you financed the full $20k with zero down, you'd have no equity in the car and it should be allowable---right?

Am I thinking about this the right way?


(I sure hope so)