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Getting a new car loan after chapter 13

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Getting a new car loan after chapter 13

My Chapter 13 will be over in early 2012 and my current car is needing to be replaced.  Are there specific lenders I should consider that will give me the best rates as well as not requiring a huge down payment?   I have a loan on my current car that will be paid off well before then which should help me with my FICO score some. 

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Valued Contributor

Re: Getting a new car loan after chapter 13


JayhawkFan wrote:

My Chapter 13 will be over in early 2012 and my current car is needing to be replaced.  Are there specific lenders I should consider that will give me the best rates as well as not requiring a huge down payment?   I have a loan on my current car that will be paid off well before then which should help me with my FICO score some. 



Since you did not include the current car in the BK it will help you to re-establish.


Honestly the ease of you getting a new car loan will all depend on exactly how well you have re-established and who all you took down in the BK.

 

You rbest bet would be to ration, scrimp, save, and Ramen noodle your lifestyle to accumulate as much money as you humanly can between now and then.


Cash makes up for a lot of ugly on your credit report when getting a car loan.

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Credit is not a right, but a business transaction, one that takes into account risk, and charges accordingly based on that risk.
Your credit score is an aspect of your credit profile. Important? yes but just an aspect. Contributing/supplemental information determines the finer point of the deal. Ask any question, respect me not to get mad if the answer is not the affirmation you are looking for,
Message 2 of 5
Regular Contributor

Re: Getting a new car loan after chapter 13

I got a loan through Regional Acceptance at 20% one month after our chapter 13 discharged in 2009 . I paid 1500 down with no trade in and drove 4 hours to get a decent price. We had 2 cars in the BK  so my credit was totally crap. My wife was able to get a loan though Chase at 24% and refinanced through Santander (Road Loans) at 18% in late 2009.

 

Both cars have been traded in and I have 8.9% (used through BB&T that basically paid themselves off) ) and 7.39% ( new through NMAC)  so you may have to pay out the wazoo for a while. You having paid on your car through the plan may make it easier on you than me so your options might be more plentiful and better rates than what I had.

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Message 3 of 5
Epic Contributor

Re: Getting a new car loan after chapter 13

Just like last poster... I pulled out of my Ch 13 and had worked with Roadloans gone Santander on my car included in the BK to get reporting right... got "Dismissed" letter from court and went running for the dealerships... I was able to put 1k down and finance through Santander the new car at 17%, 2 weeks later Santander came and repoed the car in the BK! I don't think they were so happy when they realized the computer had let me buy another car with them... but the BK had not been making full payments to them and they would not let me conitnue to make payments to them when I dismissed BK so no choice but to give it back in my eyes.

but my suggestion would be get some new credit and work on paying car loan off... I had decent Fico but HORRIBLE Auto Enhanced Fico which hurt me to buy new car but had been approved through Toyota before going to CarMax.

Message 4 of 5
Moderator Emeritus

Re: Getting a new car loan after chapter 13

Hi jayhawkfan1,

 

Welcome!

 

We had no trouble with auto financing a few months post CH 13 BK discharge.  We went through our local CU at a good rate, but also checked in with Alliant CU, and USBank.  IMO, check out whichever local CU does a boatload of local auto loans (they often advertise this) and have financing in hand when you go car shopping.  Now, at 2 years post discharge, our (recently refinanced with same lender) auto loan is at 3.99% - not too bad!

 

And congrats on your upcoming discharge!  Well done - most folks do not complete their CH 13's - it can be a very tough program.  Kudos to you!

 

 

Just puttin' syrup on something, don't make it pancakes.
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