My wife and I filed a chapter 13 bk back in june 2012. Due to a personal situation we were able to convert our chapter 13 to a chapter 7 and just completed our 341 meeting last week.
We currently have a 2009 Chevy Malibu that we owe $19k on (wife got buried in an older SUV that we had to roll when tranny went, so it got stuck on Malibu loan). We are going to surrender this vehicle as it's the right things to do with owing $19k and it having 50k miles on it.
We need to get her a new car. We are looking at pre owned and got approved for Roaldoans at max loan of $31k with a 15.32% rate. They do require discharge papers to finalize loan. We also got approved through a local dealer using a lender named Friendly Finance out of Maryland also at about the same rate.
Our dilemma is this...we know 15% is probably the best rate we will get given our bankruptcy (also mortage is past due, working on loan mod and reaffirming however wells fargo is not reporting). Do we wait until discharge papers come which gives us a "wider" selection of lenders who will deal with us and risk Ally repo'ing her car (as once discharge is complete the stay is dismissed and they can take it) or do we get something we like now?
We really are confused here because there is not a "good" direction to go we just want to limit the bad if that makes sense. The good thing is our income is great and coming out of a bk we don't have many bills other than the normal items to pay. The only other catch is my wife filed chapter 7 back in 2004 so on her report she is showing a dbl bk (her old chapter 7 reports still for 14 months)
Any insight would be great.
I honestly do not believe that the rates will get better once you get discharged. You may get a couple more options as far as lenders. I'm fresh off a 7 and the best I've gotten is 25% from Roadloans. I need a vehicle so I'll end up biting the bullet and taking the deal only to refi in about 6-12 months.
Road loans approval doesnt mean much. Im willing to bet there is a huge charge to get that loan and the dealer wont want anything to do with it.