Chances with Mazda capital?

jason0618 · ‎02-09-2017

Hello, long story short-- I have a 6-7 month old chapter 7 discharge. I included mostly medical bills, but also two cars. One with Ally, and one with a local credit union.
In the seven months since discharge, I have been diligently working on rebuilding and now have scores around 650 on all three bureaus.
I got a car the day after discharge from Consumer portfolio services. 22.99% interest rate on an 08 chevy impala. Then, about three months ago, i leased a 2017 chevy Traverse from GM financial for my wife.
My 08 impala has a transmission issue and I now want to replace it. I still owe $7,000 and trade value is about $4500 as it sits so there is some negative equity. I'd like to get a new Mazda 3 sport, which will be right around $20,000. There is 0% available, which I probably won't qualify for, but there's also a $1,000 rebate. My plan is to trade my impala and put anywhere from $5-7,000 down and finance for 60 months. My credit util is at 3%. With all of this, will I have a shot with Mazda capital, or will I be declined due to the six month old bankruptcy since chase underwrites Mazda, and they're notoriously not bankruptcy friendly.
My other car thoughts are new Toyota Corolla, slightly used Hyundai Elantra, or a 2013-14 Dodge Charger. My top choice is the Mazda, but I don't want to get shoved into another subprime loan like the one I have now.

Scores as of 04/2021

Gardening until further notice

JGGM · ‎02-09-2017

Even with the money down, seems like a lot of new auto credit in a short period of time. They might want your wife on the loan with you, to show a need for a second new vehicle auto loan. You didn't mention your income, so of course verifiable income can make a difference. I am sure there's a bank that will do it, but at what interest rate and cost to you.

Current Score 7-1-21: TU: 812 EX: 805 EQ: 839
Goal Score:ACHIEVED - 800 Across the Board
In My Wallet: Cap1 QS - PenFed Power Cash Rewards - PenFed Promise - AmEx Delta Platinum - DISCO - NFCU Cash Rewards - Chase Sapphire Preferred

Anonymous · ‎02-09-2017

The Mazda 3 is an excellent car, just bought a 2014 touring model for my daughter. My suggestion is buy the car you think is your best long term solution knowing that you will likely get a crappy APR but buy smart and keep the loan to value ratio as close to 100-110% as possible so you can refinance in a few months when your scores recover a bit and you have aged your accounts. Mazda uses Chase as their captive lender so you may not get much love from them, I would suggest building a relationship with a good credit union and see if you can get a decent APR from them. If not take what you can get and refinance later. I was able to keep my LTV reasonable and built enough on my scores that after 5 months I was able to refi a Santander loan at 12.5 to NFCU at 4.29. I am sure you can do the same.

jason0618 · ‎02-10-2017

Income was 110,000 last year and will be a couple more this year. My wife doesn't work, but I've already got two car loans. Not sure why they would suddenly want her on the loan with me when it wasn't an issue adding the traverse lease. Who knows, though.
I won't take another high rate loan. I got a bad rate on the impala and a decent lease rate on the traverse. If I end up being offered a high rate, I'll just take my money and fix the transmission on the impala and keep driving it until everything is completely recovered, that or just pay cash for a 2 year old Mazda.

Scores as of 04/2021

Gardening until further notice

JGGM · ‎02-10-2017

The difference in your current car loans versus getting another new car loan: 1) significant difference in amount owed on the impala versus proposed new vehicle 2) you just added a brand new traverse, $30-40k I assume. So now you're trying to go from owing lets just say $42k to over 50k on vehicles, just out of bankruptcy and you just opened a new auto loan.

Im not saying it's impossible, but I don't think it will be easy to get a "good" rate. As you well know, there's more to a lending decision than just a number - there's data that shows why the score is what it is. Personally, I think you'd have better luck with Ford, Nissan, or Chrysler.

Current Score 7-1-21: TU: 812 EX: 805 EQ: 839
Goal Score:ACHIEVED - 800 Across the Board
In My Wallet: Cap1 QS - PenFed Power Cash Rewards - PenFed Promise - AmEx Delta Platinum - DISCO - NFCU Cash Rewards - Chase Sapphire Preferred

EddieK · ‎02-11-2017

@Anonymous wrote:
Your situation here is so complicated and I guess, it would be better if you can discuss it with the dealers or agents. As a great tips here, you can find your options just in case for the Toyota Corolla, https://dsrleasing.com/car-listings?make=toyota&model=corolla. You can also contact them through the trade in issues. Hope this might help you.

Surprise, surprise.

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