BK discharged 3 years ago, looking for an auto loan, how will i do?

[usnbmc]

okay, BLUF: EX 614 TU 657 EQ 654

BK (CH7) Discharged March 10.

DTI is %52 ( think, monthly income is  4080,ALL bills total 2340, this includes my CC payments)

Capital one visa card, 500 Limit, $25 bal

Credit one Master Card, 500 limit, 450 Bal

Barclay MC, 400 limit, 267 bal.

I"ll make some more payments on my CC's before the next billing cycle.  hopefully knock 100 off of each.

so, how do i fare to get a new/used car loan? looking to borrow 25k.

thanks 

[usnbmc]

BLUF: bottom line up front

just for clarity, in this world of abbreviations  :)

[lajntx]

The important question here is:

What is your auto loan history? Any PIF loans?  Were any included in your CH 7? How are your scores and inquiries looking now? etc

Based on my experience with the info you gave, you stand about a 100% approval chance with a "nasty" 20%+ sub prime lender like Santander

A high probability of approval with Capital One in the low to mid teens on APR for a used car through dealer financing.

Provided you didnt turn in a vehicle on your Chapter 7 ( or burn Ford at any point in the past ) - A high probability of approval with Ford on one of their rebate & low X% for Y months programs in lieu of the full rebates on a new ford.

I`ll need more info to go beyond that though.

[usnbmc]

i have had some pif's, but those were long ago.  i had 2 vehicles, both Dodge, included in the CH7. 

I never burned ford, but they will see that i turned in 2 on my BK.  before the bk, everything was paid on time as agreed. never late.

my AAoa is 7 years, oldest being 12. since 2010 i have paid every bill on time, never late.  i also discovered that my DTI is lower than what i listed.  i listed every single thing i pay in the month.  food, gas, utilities etc... bill are 3 CC's, rent.  i think that's what they are looking for.  i should also have 5k to put down, lowering the request loand amount.

i really hope i can get ford  approval.  that would make things much easier.  i'm also very interested to know what my "auto enhanced" score is.

thanks for your help and looking forward to your reply.

rob

[lajntx]

To be honest with you, this one could go either way, and is going to come down to what you are wanting to buy and which dealership you go to.

On the one hand-- you turned in 2 cars- Not something that will help you any. On the other, you didnt burn Ford and you have that up to 5K you could put down which will help overcome those 2 turn is. You are going to have to find a large high volume dealership ( thats within your driving range ) that sends millions & millions in business to Ford each year. Look for those with a strong internet presence, willing to show a sales price instead of MSRP or Call on the listings, and preferably look for dealerships that say: " Presidents Award " winner. Also, from my experience as to being in a similar situation.  It is better to do your research on what vehicle you want and just go there or call and make an appointment rather than just try to do it all over the phone. Dealerships I have found are more willing to "deal" with you physically there and wanting to buy now vs the person that *might* show up.

Ford sales in strange ways. If you go to Ford.com and look up local offers you`ll many times see things like:

( example only )

NEW 2013 Ford F-150

MSRP: 23445.67

Rebate: $2000

Ford Credit Rebate $500

Customer Cash $1000

OR

1500 Customer Cash &

0.9% for 36 Months

1.9% for 48 Months

2.9% for 60 Months

The MSRP is for the base model price... The first set of rebates apply if you are paying cash, bringing your own financing, not financing through Ford, or dont want to do the APR offer. The Second set with FMC is generally Tier 1 credit that is listed on the offers. However it really doesnt go up much for Tiers 2-5. Only the dealership has access to the tier finance offers for 2-5

Lets say you are a Tier 4, the finance guy looks up Tier 4 and it lists:

5.9% for 36 Months

6.9% for 48 Months

7.9% for 60 Months

Now you have the situation where you can either get the truck with a NON FMC loan with 3,000 & rebates and whatever they offer APR wise, $3500 with FMC if you dont want the APR promo and take whatever APR they throw at you, or you can take the Promo and the $1500 cash.  When the first two options are 17% & 15% it becomes a no brainer to take that 3rd option. That is how Ford is able to do sub prime loans and still offer killer rates well under what others offer.

In summary if you are wanting a FORD, go in wanting a "reasonable" vehicle for your situation and not the most expensive one. Also, look for that larger dealership that has a little more sway with FMC.

Hope this helps, good luck, and keep us posted

[usnbmc]

Wow! That's very interesting!  Thank you for the reply, and advice.

I'm looking to get a used Mustang, 2011-2013, approximately 25K, and I have the propensity to put down 5K.

i've been to a dealer here in Jacksonville, who is willing to make a deal.  I went and test drove an 08 with only 22K miles and a 10 with 47k,   each is listed for 22995.  very reasonable prices, considering they are both 4.6L V8's. 

i'm looking for a used Car, but i've also been wondering if i can get a lower interest rate on a new car??   the 13 that has what i want is 28k, less 5K down,  my wife is working, and i'm active duty navy, Chief Petty Officer, and i'm working 2 jobs, second one is "slingin' pizzas for hourly wage plus tips.   this is relevant because i can easily handle a 600 a month note, for 60 mths.  thoughts?   idk.  i'm nearly "severly averted" to buying new.  so many thousands of $$$ wasted, the minute those back tires hit the "street". 

i wonder, if it's worth my time to even pursue a new car?  consequently, reading your reply below, "NEW" may be the only way to really save any $$$ with the interest.  that's what has me most concerned, the amount i'm going to "spend" in interest rates. 

regardless, i digress, seems i'm long winded when typing as well.....

i think i'll do some more research and look for the larger dealerships, and the higher ratings.  thanks so much for your help!!

regards,

rob

[lajntx]

---

@usnbmc wrote:

Wow! That's very interesting!  Thank you for the reply, and advice.

I'm looking to get a used Mustang, 2011-2013, approximately 25K, and I have the propensity to put down 5K.

i've been to a dealer here in Jacksonville, who is willing to make a deal.  I went and test drove an 08 with only 22K miles and a 10 with 47k,   each is listed for 22995.  very reasonable prices, considering they are both 4.6L V8's. 

i'm looking for a used Car, but i've also been wondering if i can get a lower interest rate on a new car??   the 13 that has what i want is 28k, less 5K down,  my wife is working, and i'm active duty navy, Chief Petty Officer, and i'm working 2 jobs, second one is "slingin' pizzas for hourly wage plus tips.   this is relevant because i can easily handle a 600 a month note, for 60 mths.  thoughts?   idk.  i'm nearly "severly averted" to buying new.  so many thousands of $$$ wasted, the minute those back tires hit the "street". 

i wonder, if it's worth my time to even pursue a new car?  consequently, reading your reply below, "NEW" may be the only way to really save any $$$ with the interest.  that's what has me most concerned, the amount i'm going to "spend" in interest rates. 

regardless, i digress, seems i'm long winded when typing as well.....

i think i'll do some more research and look for the larger dealerships, and the higher ratings.  thanks so much for your help!!

regards,

rob

---

 A few questions/points...

1. Since you are active duty Navy, are you able to finance with Navy Federal Credit Union or did you burn them in the BK?

2. Pizza Delivery -- You arent planning to use the mustang for that are you? Or do you have an old beater specifically for that?

3. Used vs New... With Ford Credit the used car will have to be Ford CPO ( Certified Pre Owned ) or be new. ( plus you lose the special APR`s on used )

4. Picking your mustang and some thoughts for you....

2013/2014 is the last year of the current retro design & has the 5.0 which will always be worth more than that 4.6. The new design 2015 will start with the 5.0, but all bets are that 2016 will be the yet to be released smaller eco-bost V8 due to upcoming MPG requirements. Those older ones might be cheaper up front, but the financing will probably be more favorable if you get that left over new `13 - or like me-  a `14 that has been sitting there 6 months and a dealer wants GONE yesturday. Also, in the years to come the fly in the ointment is will those 5.0`s be worth a little more if that new V8 fails to live up to the wants, needs, & desires to the crowd that wants HP and causes a higher demand for the used 5.0`s as happened in the past when the 5.0 went away.

@When I was looking for mine this summer. ( I wanted a V6 with the newer 3.7  ), all the used ones were about 20-22K. The high mileage ones were about 18K-ish. Plus I would have that issue with the APR. I knew I`d get financed but didnt want to pay 12-14% since Ford had got me financed in the 2013 Focus for 1.9% ( was 5.9% but I talked the dealership out of the holdback ). I found the exact base model 2014 with automatic I wanted. Sales price was 22600 & 1000 reabte + 4.9% promo @ 72 months, and I put 1000 down. So with rebates and dealer discounts I paid 21600 for a new one vs paying around the same for a used 2011-13.

This trick is what I used to find mine specifically built the way I wanted .... It might help you

Go to Ford.com and on the right click Shopping tools and follow the guidlines. Use a zipcode from a local larger city for better results.

Shopping Tools, search dealer inventory, select mustang, search dealer inventory online - enter zipcode and select search dealer inventory. Then set your filters - on filters uncheck the types of mustangs you arent looking for, on year deselect 2014 if you are looking for a leftover 13 for the higher rebates, move the price bar down to remove listings for cars more than you want to pay - Then the rest are up to you, but I would leave them blank for better results unless you want an automatic vs a stick.

As you are doing this the list will shrink and shrink of available cars as it filters out showing the local dealer for the zip you gave, as well as extended inventory in the tabs. This method doesn't show you where the car is, but if you cut and past the vehicle`s vin # ( highlight, then hit the Ctrl & C button at the same time to copy ) and google search it ( move the cursor to the search box and hit Ctrl & V buttons to paste ) , if the car is at a larger dealership that has an internet dept that actually lists cars online it will find it on their website. By changing the zipcode you can search across the broader area.

When I picked mine up at delivery, I couldnt tell if I bought it - or won it on The Price is Right.

[usnbmc]

A few questions/points... 1. Since you are active duty Navy, are you able to finance with Navy Federal Credit Union or did you burn them in the BK? NFCU was "burned" in the BK

2. Pizza Delivery -- You aren't planning to use the mustang for that are you? Or do you have an old beater specifically for that? No way, I've an old 99 Chevy cav. for that

. After reading your post, I'll try to get a new one, using the low APR option. I found one in Savannah, GA, for 26,695, I'll try to get them down. They may not be my best option. I've found one locally, for 28321, offers 3500 in discounts, and I may be able to get another 500 for "military appreciation". I'll try to get the 1.9 for 72mths, but I just don't know if my score will support it. Thanks again. Rob

oh, my 5k down, I think disappeared last night. (such is life, and ex wives and kids and "back to school").... So I will probably be going in blind, on my name and see what they can do for me.

And! Super sweet ride! I want one just like that, or maybe black

[lajntx]

The new v6 isn't a bad car and can still get you into plenty of trouble. A few upgrades and its almost as good as a gt. Going low to no down on one of those might be a workable option if you get told no on a gt.