Auto finance with negative equity?

[Anonymous]

I have about $8,000 negative equity in my car. I would love to trade it in and was approved by cap 1's blank check program of up to 30k. I'm 16 past chapter 7 discharge, so not sure if other places will approve me. Can I roll my negative equity into the blank check through capital one? Worth the inquiries to apply elsewhere?

[b_diddy]

Someone will approve you (this is how subprime lenders make their living) ... the catch is the interest rate.  Also remember that it's not in the best interest of a car dealer to find you the best rate.  They get points (kickbacks) to put you in a higher rate loan.  If you can, always go into the dealership with your own loan pre-approved.  This puts you in a much better negotiating position on price, terms, trade-in, etc.  If you're a member of a local CU, go there and explain your situation vis-a-vis your current upside down loan.  They are often willing to work with you without fleecing you on the rate.

[Anonymous]

Thanks for the response! I plan to visit the dealership on friday. Unfortunately, I burned the only local credit union near me in my bankruptcy! They won't take me back :/

[0REDSOX7]

Rolling 8K of negative equity may be a stretch with the Capital One Blank. They are pretty strict with the LTV ratio. They usually say 110-115%, and that varies based on the car you picked.

30K in blank check at the most means you could roll over 3000 to 4500 in negative equity. And that doesn't include TTL and any other backend products you may want (GAP, Service Contract, etc).

Keep in mind it may not work out 100%.

Do you have a down payment available?

[b_diddy]

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@Anonymous wrote:
Thanks for the response! I plan to visit the dealership on friday. Unfortunately, I burned the only local credit union near me in my bankruptcy! They won't take me back :/

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I would recommend that you make sure you know what your actual credit score is ... they will often tell you it's worse than it is.  Many dealers use an auto enhanced score that heavily weighs your payment history on any prior auto installment loans.  Get ready for a boat load of INQs on your CR.  If they are all done at dealerships in about the same period of time, FICO will see them as a single pull.

[sccredit]

You are 16 what past BK?  Days?  Months?  

Also rolling $8k into a car is going to be tough, if not impossible.

[0REDSOX7]

FICO treats all auto inquires within a 30 day time as one inquiry for scoring purposies, however, other lenders may not and may be declined credit in other segments due to "Too many inquiries"