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Auto Loan after BK Advice

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Anonymous
Not applicable

Auto Loan after BK Advice

Hi, new to the forums.

 

I am considering a new car loan, probably somewhere in the area of $25k. Looking at interest rates, and knowing I won't be approved for the lowest by any stretch, that seems to be an amount I could afford safely. Because I am rebuilding my credit after a BK (discharged 7/2012) I am very concerned about "wasting" any inquiries without carefully examining my likelihood of approval.

 

My history:

BK discharged July 2012. As a result, looks like 10 negative items (included in bankruptcy) on my reports. Admittedly I need a little more practice interpreting the CRs though.

Income 74,000 (11 years at the same job, government)

Auto History - perfect payment history with Toyota Motor Credit for 8 years. Current car is paid off (2004 Scion) but account is still reflected on my report despite being closed.

FICOs: depends on the day and bureau, it seems. Somewhere between 625 (on the low end) and 670 on the high.

Credit cards: CreditOne unsecured ($600 with 10% util) and Barclays ($1500 with 0% util). Credit1 is a year old, Barclays just a month old.

Student Loans: perfect history since 2003. Highest balance $31,000. Current remaining about $24,000.

 

I'm confused about DTI calculations, and I am aware that the BK is HUGE black mark. Any thoughts on my chances? What might I expect for a down payment?

 

Also, I just recently joined NFCU but did not want to attempt any credit requests out of fear of the new inquiries/account age.

 

All advice is appreciated!

 

Message 1 of 7
6 REPLIES 6
Anonymous
Not applicable

Re: Auto Loan after BK Advice

nobody? Also, BK actually discharged in July 2013... Typographical error

Message 2 of 7
sccredit
Valued Contributor

Re: Auto Loan after BK Advice

You are probably right tht you would not get the lowest rate but I don't see you having an issue getting financed at a decent rate.  I'd probably even try through Toyota

Message 3 of 7
salem
Member

Re: Auto Loan after BK Advice

I would definitely start with Toyota although I am sure you could go other places. I had a BK discharge over 2 years ago and during my bk I reaffirmed my auto lease with Toyota however it ended 4 months after the BK Was discharged and I wanted to buy it at that time. Since my BK was so recent I had called all over and no banks wanted to even talk to me until a year had passed. I finally called Toyota and they were awesome and financed me with a 5% rate and they said since I was a loyal customer they would work with me. My income was similar to yours and at that time our score was around 650. I recently traded that car in as well as bought a house. I didn't put any money down on that Toyota that I bought or the lease I just got through Honda. Have you talked to Toyota yet? I think you will be fine.
Message 4 of 7
Anonymous
Not applicable

Re: Auto Loan after BK Advice

Thanks Salem. I hear what you're saying about Toyota, and they have been very good to work with over the years. I just wish they were offering a more inspiring vehicle right now. Nothing even remotely seems appealing. I am in the market for a small SUV/crossover because I need to tow every now and again and cart around a lot of junk. But the RAV4 is such a bore, the Highlander and 4Runner are overpriced in my opinion. 

 

Does Toyota Financial handle Lexus financing, or are they their own entity? I ask because I would rather go with a Lexus that's several years old and at least enjoy the look of the darn thing. I know it's just a car, but for 11 years I have toiled away in an econo-box that has been functional but joyless. I'd rather work a few hours of OT and enjoy that commute for a change... Smiley Wink

Message 5 of 7
salem
Member

Re: Auto Loan after BK Advice

I am not sure who does Lexus financing but I think if you go down to the dealer I think you should be able to line up the financing. I hear you About the Toyota line up as well. I am not a fan of the Rav either. Have you looked at a Honda CRV? Those are really nice ! 😊 I love the Lexus too! Might as well enjoy your ride!!
Message 6 of 7
sccredit
Valued Contributor

Re: Auto Loan after BK Advice

Lexus Financial Services is part of Toyota Financial Services and your Toyota history will be taken into account

Message 7 of 7
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