Auto Loan With Bankruptcy

bott6698 · ‎05-18-2012

Here is my situation. After I went bankrupt end of 2011 I quit my job and started my own company

and the business has been really good. I am moving out of State and need to get a new vehicle

for work purposes and also to enjoy.

I had gone into a dealership and wanted to do a prepaid lease for 3 years. I was going to pay cash

for the deal and the prepaid leasing company which they told me was allied denied me because of

a recent discharged bankruptcy. I can't understand how you can get denied to PREPAY in full a lease but it

is what it is I guess. The dealership called me back and told me I would have a better chance of buying a car instead

with 10-15k down. My question is are there any Bankruptcy friendly banks that would accept my business with 15k down

on a 35k vehicle etc? I would love to have the loan preapproved so I don't have to worry about that...If it helps my income

is well over 20k per month. Please let me know if you have any thoughts on this thanks

10/11/2017 EQ 640 TU 639 EX 652 12/10/2016 EQ 621 TU 607 EX 626 10/10/16 EQ566 TU591 EX 587
01/31/2008 EX 502 EQ 466 TU 481
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4/16/2008 EX 622 EQ 532 TU 578
5/19/2008 EX 604 EQ 591 TU 592
1/1/2009 EQ 625 EX 576 TU 569
02/13/2009 EQ 648 EX 617 TU 590
09/28/2009 EQ 568 TU 591
Thanks to all Fico supporters for your encouragement and advice

JM-AM · ‎05-19-2012

@bott6698 wrote:
Here is my situation. After I went bankrupt end of 2011 I quit my job and started my own company
and the business has been really good. I am moving out of State and need to get a new vehicle
for work purposes and also to enjoy.

I had gone into a dealership and wanted to do a prepaid lease for 3 years. I was going to pay cash
for the deal and the prepaid leasing company which they told me was allied denied me because of
a recent discharged bankruptcy. I can't understand how you can get denied to PREPAY in full a lease but it
is what it is I guess. The dealership called me back and told me I would have a better chance of buying a car instead
with 10-15k down. My question is are there any Bankruptcy friendly banks that would accept my business with 15k down
on a 35k vehicle etc? I would love to have the loan preapproved so I don't have to worry about that...If it helps my income
is well over 20k per month. Please let me know if you have any thoughts on this thanks

IMHO since your BK is so recent it will be a stepping stone. I do believe getting financed is an option but at what cost?

If your income is generating a good cash flow as you stated then IMO it would be best to limit your spending to save enough to pay cash for the car. Really is no reason to throw away your money on high interest rates.

Another option is to buy a cheaper car for a period of time. Once you start your credit rebuilding process things will become easier with-in a few years after BK.

Good Luck
May all your dreams and wishes become a reality!

Creditaddict · ‎05-19-2012

Lots of banks will approve after BK when it comes to a car.... However I would probably go take out a "secured Loan" at a local credit union with some cash if you want to build up credit with a loan and pay cash for the car....

Seems silly to pay "Probably" a disgusting APR if you can pay cash instead...

What kind of car is it?

Has the dealer that said you should buy pulled your reports? What are the scores he is getting (most likely Auto-Enhanced) really only way to get them is when buying so would be helpful for all options.

has he offered any kind of rates based on you putting the $10+k down?

onamission2012 · ‎05-20-2012

Hello. This is my first post but I have been learning from everyone for a while. If you have proof of income, I recommend Capital One only because of my recent experience.

Here is my story. After 5 long years in Chapter 13 bankruptcy, I was finally discharged on 5/10/12. My vehicle stopped running two years ago so I decided to wait it out until my discharge. As of last week my auto enhanced score was 540 with an annual income of only 35,000. On 5/12/12, I applied for a Capital One blank check and was approved for $20,800, 13.85% for 60 months. This may be high to some of you but I was expecting 20+ rates just two days after discharge. I had been in contact with an Internet Sales Manager at a local dealership for weeks getting quotes. I went to the dealership on Monday, looked at some vehicles and decided on 2012 Chevy Malibu LT with an all star chrome package with a MSRP of over $25,000. I went into the finance manager's office and he tried to play me and say he could only get me approved for 72 months at a rate of 11% through Capital One. I told him I would never accept 72 months. I pulled out my fed ex envelope and he said "oh you have a blank check." He came back and offered me 9.34%, for 60 months through Capital One. I only traded my old clunker that I have not driven in 2 years which they offered me $1,000 for. I paid nothing down and only financed $17,000. I took the car home that day.

This is my first new car. I am so happy because I never expected to get a rate in the single digits and I have sacrificed going without a vehicle for so long. Now, I can concentrate on continuing to rebuild.This has been the hardest and longest five years of my life. If you get a pre-approval, let the dealer try to beat it. Good luck to you.

Creditaddict · ‎05-20-2012

@onamission2012 wrote:
Hello. This is my first post but I have been learning from everyone for a while. If you have proof of income, I recommend Capital One only because of my recent experience.

Here is my story. After 5 long years in Chapter 13 bankruptcy, I was finally discharged on 5/10/12. My vehicle stopped running two years ago so I decided to wait it out until my discharge. As of last week my auto enhanced score was 540 with an annual income of only 35,000. On 5/12/12, I applied for a Capital One blank check and was approved for $20,800, 13.85% for 60 months. This may be high to some of you but I was expecting 20+ rates just two days after discharge. I had been in contact with an Internet Sales Manager at a local dealership for weeks getting quotes. I went to the dealership on Monday, looked at some vehicles and decided on 2012 Chevy Malibu LT with an all star chrome package with a MSRP of over $25,000. I went into the finance manager's office and he tried to play me and say he could only get me approved for 72 months at a rate of 11% through Capital One. I told him I would never accept 72 months. I pulled out my fed ex envelope and he said "oh you have a blank check." He came back and offered me 9.34%, for 60 months through Capital One. I only traded my old clunker that I have not driven in 2 years which they offered me $1,000 for. I paid nothing down and only financed $17,000. I took the car home that day.

This is my first new car. I am so happy because I never expected to get a rate in the single digits and I have sacrificed going without a vehicle for so long. Now, I can concentrate on continuing to rebuild.This has been the hardest and longest five years of my life. If you get a pre-approval, let the dealer try to beat it. Good luck to you.

This is FANTASTIC... MODS, I think this should REALLY be posted in a new thread all by itself saying "THIS IS HOW YOU BUY CAR WITH BK!"

It is SO important if you don't have prestine credit to look around at options before you go and if at all possible do not trade in a car without VERY GOOD knowledge and research on how they can work numbers on you so quickly that seem to benefit... but if you stay cool and in control the above is what can happen... The dealer WANTS to finance for you!! and if you are firm on not doing that without really making it worth it, they will talk you into it in minutes.

I had stated it on a used car my friend bought at a BMW lot... She was going to "MATCH" the rate she wanted the loan so bad... I said to her and my friend at same time, he is much better off using the loan he got from his credit union because he will most likely use them again in the future vs. a BMW loan for a non BMW product!

and he is already seeing why, when he went in to sign the papers, by having auto detuct and stuff they gave him another ..50% off... seems small but again they now like him and want him for more banking and he saves that "little" bit!

CONGRATS TO YOU!!!

onamission2012 · ‎05-20-2012

Thank you very much!! I think because I am a female, they did not expect me to know as much as I did but it is because of these forums and researching online. My salesman said the finance manager was still talking about me after I left. LOL I read all paperwork and asked a lot of questions but I could not be happier.

Creditaddict · ‎05-20-2012

@onamission2012 wrote:
Thank you very much!! I think because I am a female, they did not expect me to know as much as I did but it is because of these forums and researching online. My salesman said the finance manager was still talking about me after I left. LOL I read all paperwork and asked a lot of questions but I could not be happier.

That is another point... you actually got right to finance guy it seems... I know from experience Sales people trying to bring you down before you even get into the finance guy so that you already think it's fantastic you got approved if something was wrong with credit. You start talking to me like I'm stupid... I'm going to go to the next dealership.

I also HATE talking payments... payments have nothing to do with it until we know what im paying for the car... if you have an iphone download a amortization calculator... makes it so easy to look at figures and be like you say payment of $510-$530 but when I do 8% at 30k I get $450? (I had sales lady once say I don't know how all those things work and if they are accurate) further more say it won't matter what the price is if you cant afford the car payment! UMM i picked the car!!