Help and Advice needed about a possible car purchase

[Anonymous]

My Bk was discharged on Nov 2, 2015 and my scores currently are in the mid-500's.

I included my car in the BK because I am paying $410.77 a month for a base Kia Soul and I want to get lower payments and better gas mileage and I owe to much to refinance.  I haven't surrendered it yet since I need to have a car lined up.

A local VW dealer has offered me the following:

2016 VW Jetta 1.4 S with Technology with automatic (Due to a work injury on my right arm, I can't drive a manual.)

$367 a month for 72 months with about 10% interest, lifetime free oil changes, and first service would be free.  It would include Gap insurance.

At first they offered me $398 then $375 and then as I walked out the door, the salesman told me outside one on one that the Finance manager offered $367 a month with $500 down and the first payment wouldn't be due till Jan 2016.  And in 8-12 months I am guaranteed being able to refinance with the dealer.  I haven't seen a contract, it has been verbal back and forth.  I told them I need to go home and think it over.  I do like the Jetta not as much as the Golf but I do get more car and better gas mileage with the Jetta.

Does this sound like a good deal?

I was hoping to get about $300 a month payment but I know as a recent BK'er that maybe hard.

[Anonymous]

367 a month for 72 months isn't bad at all with ur score and recent BK that's like 5000 interest Ina 21k loan no way to get a 300 a month payment unless ur able to get like a .9-1.9 interest loan

[Anonymous]

Went to the VW Dealer today to work on that $367 a month payment.  Yep, it was to good to be true.  They wanted to sell me a 2012 Kia Optima with 99,990 miles with a clean car fax for about $8,750.  They couldn't get anyone to finance me but Santander would with the $8,750 car.  The down payment went up to 1,500.

I spent the whole day there. 

I realize I am fresh out of BK but really a 4 year old car just shy of 100,000 miles. 

I am sure if I countine to look I can at least get a car with lower mileage.  I put about 250-300 miles a week just commuting to and from work.

One of the salesmen was like if you can get your dad to co-sign we could get you a lease for $250 on the Jetta. I pretty sure my dad would not want to do that and I don't want my dad to go that far for me. 

[StartingOver10]

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@Anonymous wrote:

My Bk was discharged on Nov 2, 2015 and my scores currently are in the mid-500's.

I included my car in the BK because I am paying $410.77 a month for a base Kia Soul and I want to get lower payments and better gas mileage and I owe to much to refinance.  I haven't surrendered it yet since I need to have a car lined up.

A local VW dealer has offered me the following:

2016 VW Jetta 1.4 S with Technology with automatic (Due to a work injury on my right arm, I can't drive a manual.)

$367 a month for 72 months with about 10% interest, lifetime free oil changes, and first service would be free.  It would include Gap insurance.

At first they offered me $398 then $375 and then as I walked out the door, the salesman told me outside one on one that the Finance manager offered $367 a month with $500 down and the first payment wouldn't be due till Jan 2016.  And in 8-12 months I am guaranteed being able to refinance with the dealer.  I haven't seen a contract, it has been verbal back and forth.  I told them I need to go home and think it over.  I do like the Jetta not as much as the Golf but I do get more car and better gas mileage with the Jetta.

Does this sound like a good deal?

I was hoping to get about $300 a month payment but I know as a recent BK'er that maybe hard.

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See the sentence in red in your original post? That is a dead giveaway that the sales rep/finance person is lying.  Car dealers do not refinance at all. Ever.  The only thing they can do is sell you another vehicle with this one as a trade.  And, in 8 to 12 months you would be so upside down at 10% interest you would have to bring a ton of cash to the deal.  So its a great thing you saw it was too good to be true. 

Get a beater for 6 months while you work on your credit. Once you get a couple of months out from your discharge and your scores into the 600s you will get much better offers. 

[Anonymous]

When you say beater for 6 months, what is a considered a beater?  I don't want to get a car that breaks down in the middle of the freeway during my commute to or from work within a month or two of ownership or have to invest a bunch of money.  If i wasn't upside down in my current car, I would love to keep it but I want to shrink the money going out and have more money to save.  I have had a few good used cars and few bad used cars. 

I guess I will have to look online and do more research about cars in my area and see what could work.

[Anonymous]

Try somewhere like a Carmax where they don't hassle with the price. Try to find a reliable model but something cheap, you don't want to finance a lot at the interest rate they are going to charge you. Miles aren't the issue on cars, many models run great at 100,000+ miles, do some research on those cars. They might be older and have some dings or dents but they will still run for a long time.

[Anonymous]

Went to another local dealer and they pulled my CS and it's at 449 with Experian (auto) .  I guess I have a long way to go before anyone will even give me an auto loan.  Frustrating.  I really would like to lower my car payment.

[Anonymous]

By the way, the salesman called me on Sunday to ask if I had changed my mind about the Kia Optima.  I said nope.  I guess the Hyundai sales guy didn't have someone lined up for it after all.  Because that was what the Finance guy told me before I left that he was letting the Hyundai salesman have it since he had a sale lined up and indicating I would lose out on this great deal.  I don't think I will go back to that dealership, never felt so intimidated and double tagged team in my life over trying to get a deal.

I think I am going to take a deep breath work on improving my CS's so more before I go car shopping again.  Depending how soon I get my disability settlement, I might use a portion of that settlement for  a down payment, if needed.

I am going to try to switch to NFCU, my dad is retired Marine so I could get in that way and NFCU sounds more BK friendly than Logix.  Logix has a secured credit card but they want deposit of $315 dollars for a $250 CL with 17.99% interest.  I am not sure but if I could get back with Opensky, they have a lot better rates. 

[Anonymous]

As of now u shouldn't really worry about credit card rates.. U gotta concentrate on making charges and paying it off.. Ask ur dad to add u to some of his credit card just so it shows u have some high balance card.. Get some secured card from cap1.. Man a Kia with 100k miles and they want that amount for it?? Go try a Honda dealership see what they say u probably will bite it and be paying more than ur original 410 unless u have a good amount of cash

[Anonymous]

There is a car salesman that I mentioned in a previous post who has in the past really looked out for his customers.  We talked on the phone yesterday about waiting and working on my end to build up my CSs and may be able to put more money down. 

This morning he called about a deal that he could possibly work for me.  A 2014 Hyundai Accent with 33,000 miles which would come with a lifetime warranty no extra charge, but I would need to have an interview with the bank, today, that would finance this deal with $500 down.  My payments would be cut in half he said.  I have not seen this car but it sounds like a possible deal that would get me back on the road to good credit. 

But I will check everything out and make sure this is not something to screw me over.  Does this sound reasonable to have a bank interview a potential borrower?