01-30-2013 02:23 PM
Hi everyone and thanks in advance for any advice you can give. I just joined myFico and my EQ score is 653 (woo hoo!!!!) even though I was just discharged from my chapter 7BK on 12/19/12. I talked to the finance manager at a Honda dealership last week when I thought my scores were much lower and he said to expect 14.9-21.9 interest rates. I did not have them pull my credit report.
I want to keep payments around $350 or less and I obviously want a decent interest rate. Where should I go to look for a loan? What type of interest rates should I expect? Should I try to get approved from a bank before I go shopping or should I find the car I want and then go through the dealers finance department?
I currently have an auto loan from 7/2011 (wells fargo dealer services) that was discharged in bankruptcy. We tried to reaffirm and never heard back from the bank. They sent a letter last week asking us to surrender and then it started buring oil (mechanic estimates 2k to fix). I owe about 5k more than the trade in, so we aren't going to fight them and surrender the car. I had a few 30 day lates on the car loan before we filed chapter 7.
01-30-2013 07:06 PM
01-31-2013 11:22 AM
02-01-2013 02:08 PM
Thank you for your replies.
My father mentioned another option. Since the car is only worth $7500 in good condition and the debt is discharged, do you think the bank (wells fargo dealer services) will take a reduced payoff? Since they would only get about $6000 at an auction? We owe about $13000 on the car and I thought we would offer $6500. Or I could take the car to Carmax or another dealership (with it's current issues, burning oil) and get an offer then offer them that?
My father had never heard of anyone doing this but thought it might be an option since they can't go after us for the deficiency since it was discharged in bankruptcy and it might be finacially beneficial to the bank.
02-01-2013 02:31 PM
aside from boutique lenders at 16% to 22% rates, I don't like your chances of getting approved. The fact that a BK has been discharged doesn't remove it from your CR, and you are heading into what sounds like it will be a voluntary repo. After that happens, there will be no auto financing for quite some time, from pretty much anybody.
Best advice if you just can't rehab the exiting loan (and it sounds like WF isn't interested) is to find an affordable car that you can either buy for cash or finance buy here pay here.
02-02-2013 12:01 PM
But the repo will be after the loan was discharged in bankruptcy, so they can not report that on any credit report or public record. Why/how would that effect me?
02-02-2013 12:41 PM
I just looked at my EQ score more closely and WFDS did not report any 30 day lates. I really hate that I made 5 payments to them after we filed ch7. That's $1875 that could be sitting in my checking account and I feel like I threw it away.
02-03-2013 10:39 AM
Just got approved through Capital One blank check!
|Approved For (up to)*:||$21,600.00|
|Loan Type:||New Dealer Purchase|
*Minimum loan amount is $7,500.00
|2012 or Newer||7.71%||$434.98|
|2011 - 2011||7.95%||$437.45|
|2010 - 2009||8.55%||$443.68|
|2008 - 2006||9.55%||$454.17|
I plan to take it to the Honda dealership and negotiate a lease! If they won't give me good terms I will buy something for around $15,000.
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO