Buying a car before bankruptcy.

[ccmisery]

My score is in the low 600s, so it may or may not work for me to go shopping at this point. I had thought about going to Ford, however, as the dealer near where I live has a good deal on the base model Fiesta.

I had a mid 500's at the time, it has dropped down to the low 500's now and was able to get a 9.99% APR from Ford Credit, but I had to put a lot down and also I had an existing lease with them that was current and in good standing. Not the greatest APR but not the insane 15 to 25% I was reading I would get. I can also pay it off early with no penalty and/or refinance down the road. Odds are I'll just try to pay it off earlier to save some $ if I can get a job soon.

Santander and several others rejected my application. Maybe for the better, since I read nothing but negatives on them.

I do not know what the longest lease is for Ford, maybe 39 months? Not sure? It is risky to lease because even after 39 months, you may difficulty getting credit or a good rate on a replacement vehicle. I would not be afraid to try Toyota, but I read they are pretty finicky on the FICO.

If you can get your wife to co-sign (and she has a better score) you may be able to get something quite easily?

[LadyInTheRed]

Lady, do you have any thoughts about him qualifying for a car payment with a broken lease? Will that affect ability to get a loan?
Or with an unbroken lease, might make qualifying harder. No?

I don't have any experience with car leases. But, I suspect the broken lease will show up on the credit report and hurt the chances of qualifying just like defaulting on a car loan. So, it's probably a good idea to get the new loan before breaking the lease, or within 30 days -before the deliquenty payment on the lease shows up.

[IBroke]

I don't have any experience with car leases. But, I suspect the broken lease will show up on the credit report and hurt the chances of qualifying just like defaulting on a car loan. So, it's probably a good idea to get the new loan before breaking the lease, or within 30 days -before the deliquenty payment on the lease shows up.

+1.

I can copy that!

[LadyInTheRed]

+1.

I can copy that!

Typos and all!

[wellnowwhat]

What about getting a small loan, like $5-6000 for an older used car? I've been looking at some older Volvos and I have to say that I'm quite enamored with them...

[keepsmiling]

What about getting a small loan, like $5-6000 for an older used car? I've been looking at some older Volvos and I have to say that I'm quite enamored with them...

Sure, why not?
Are we talking Bricks here by any chance? They have a huge fan base. I bought one last year. Solid as a rock but an electrical nightmare.

[keepsmiling]

I'll sell you mine!

[wellnowwhat]

Sure, why not?
Are we talking Bricks here by any chance? They have a huge fan base. I bought one last year. Solid as a rock but an electrical nightmare.

I'm actually eyeing up the Volvo 850. I've seen some fairly decent deals on them in my area and I actually like the look of them quite a bit.

[keepsmiling]

Sleeker than the bricks
However.... I'd think you'd still have the same issue with a cr (?)
Well, whichever you do, do it soon. Explore your options and let us know what you learn!

[keepsmiling]

@ccmisery----I would hazard a guess that 39 months after a 7 one could get a good rate. That seems like plenty of time to pull your CR back up.

[ccmisery]

@ccmisery----I would hazard a guess that 39 months after a 7 one could get a good rate. That seems like plenty of time to pull your CR back up.

That's probably more than enough time, for me a 13 was the original plan so I decided to finance instead.

[ccmisery]

I got an update on leasing, well the attorney representing Ford Credit sent an "assumption of lease" paperwork to my attorney who in turn sent it to me to be signed. In the letter to my attorney, they mentioned that the Trustee will probably not approve it and the automatic stay will be void, thus we will lose the leased car even if we are current payments. It ended with, that Ford wishes for us to assume the lease and continue.

I am guessing if the Trustee rejects it, it falls back to the creditor to allow or repo it, but this is something I am going to check with my attorney. The last line is confusing.

I would say a fresh lease with Ford Credit and a Chapter 7 discharge a few months later, might be risky with Ford Credit?

[stevie2012]

It was the best decision I did - getting a car pre filing. In fact, it helped me qualify for a Ch 7.