car loans before discharge bad idea

[timewalk169]

Hello out there
Well I filed chapter 7 July 7 2014
We choose to not reaffirm our car no problem there.
Like many people who have filed bankruptcy
After filing you get about 30 offers in the mail for new car.
So me and the wife decide let's check a few out bad idea!
Every dealership was asking 2k down and 20% interest,
One other was asking 3-4k down I had to laugh walking out.
I think car loans during bankruptcy are almost predatory in nature.
So thinking about waiting till discharge.

[no_it_all]

Car loans before discharge are a bad idea...Now that I think about it, car loans in general a bad idea unless you have a specific purpose in mind (like rebuilding credit).

[justbroke]

If you can wait, I would wait until six months have elapsed after discharge and closing of your bankruptcy case. I was able to get a rate around which I think was 7.45% (don't quote me, it may have been 7.9%) 6 months after discharge. Of course I had excellent pre-bankruptcy "auto lender" payment history, no late payments to auto lenders, and no repossessions, so my enhanced auto score was in the high 600s.

[flaguy]

If you can wait, I would wait until six months have elapsed after discharge and closing of your bankruptcy case. I was able to get a rate around which I think was 7.45% (don't quote me, it may have been 7.9%) 6 months after discharge. Of course I had excellent pre-bankruptcy "auto lender" payment history, no late payments to auto lenders, and no repossessions, so my enhanced auto score was in the high 600s.

what's this "enhanced auto score" and how is it determined? I hadn't heard of that before and was wondering a way to determine it, my history with anything other than real estate has been perfect

[timewalk169]

Car loans before discharge are a bad idea...Now that I think about it, car loans in general a bad idea unless you have a specific purpose in mind (like rebuilding credit).

I do agree with you on that.
I'm at a point in life where no car payment each month
Has been very nice.
I think I'm going to just keep saving and buy a car outright.

[justbroke]

what's this "enhanced auto score" and how is it determined? I hadn't heard of that before and was wondering a way to determine it, my history with anything other than real estate has been perfect

You can not find what your "auto enhanced score" unless you apply for a car loan. Any lender that uses this type of score must reveal the score upon which they relied. Most larger lenders use this Fair Isaac (FICO) branded auto enhanced score for lending where the collateral is an automobile.

It just looks at different factors and weighs more heavily on existing and previous automobile loans, their disposition, and history of repossession. It is typically much higher (40+ points higher) than your FICO score.