Trying to decide who to apply with for an Auto Loan before BK Discharge, Suggestions Please?

[Anonymous]

Hi there,

Ok so today we went to our 341 credit meeting and discharge should be sometime in Sept. Downside is that my car was totaled in a car wreck May 1st and we really need another vehicle. Waiting until Sept is going to be hard so I'm trying to find a good finance company that I would have a chance with approving me for a car loan with such low scores. I have a list of names like Roadloanes,My Auto Loans, Car.com, Cars Direct, Usaa, Capitol One etc. Can someone who may have been in the same boat recommend a company that would approve a car loan with low scores? Thanks

[Anonymous]

Anyone??

[Anonymous]

Sadly I didn't get any replies from anyone here! Anyway, I bit the bullet and applied with Prestige and Auto Credit Express, Prestige I would rather not use due to there bad BBB rating and bad reviews but they have been super nice and really easy to deal with thus far,Now we are just waiting to see what dealership in my area they choose. Auto Credit Express was also easy to apply with, they sent me the name of a dealership that would work with us pre-discharge, only thing I don't like is that its a Dodge,Chrysler Jeeg dealer and they have nothing I am interested in. I have also been getting things in the mail. Just trying to make the right choices, I wish I could wait until Sept/Oct for discharge but we need another car since mine was a total loss due to a car wreck that was not my fault.

[Anonymous]

Word of caution, these subprime lenders require the dealers to chip in money to them to do the financing, this can be up to 5k! Of course they wont be paying this you will be. A lot of dealers dont want to deal with that of course so that is why they assign you a dealer and in doing so you have then surrendered any leverage you had.  I was in a situation where my car was stolen while we were having our house built, as soon as the house was done the financing would be done but while you are processing a mortgage you cannot do anything with credit.  I ended up renting cars for 3 months, it was a bit of a pain but not as expensive as you would think.  If you belong to Costco you can rent a car for about 15-20 bucks a day.  Personally I would do this until you discharge and then you will be free to get much better financing and negotiate the car you want not the one that is assigned to you.

[Anonymous]

How much down payment can you afford?  It's going to boil down to that.  

[Anonymous]

Not everyone will require a down payment, I'm keeping my options open and looking for the best deal and what I am looking for. There are places that have special financing for people in/out of BK 7 pre discharge. Finding them is the issue.

[Anonymous]

I know there are lenders who specialize in subprime but I am not aware of any who specialize in pre-BK because the risk is tremendous.  Remember that someone could potentially buy a car in this situation and then attempt to place that car into one of the catagories of BK by chaning their filing.  Lenders like folks who have completed their BK because they know that you can't file again for a decade to their risks are lower that other subprime borrowers.  If you find the ones who specialize in open bk please let us know who they are and I a very curious about the terms. 

[Anonymous]

Exactly what "workingfor850" said.  It's a huge risk and technically they could structure the new car loan into the current BK.  Finding a bank that would even consider it would be more difficult than finding Loch Ness.  Even if you found them you would need a significant down payment to get you into a positive equity situation.

[EddieK]

I have nothing to add other than cute puppy!

[Anonymous]

I get what you are saying and I 1st ask permission from my bk atty and he said that it was fine to look for a car before we get our discharge, we have already been to 341 and now just waiting on discharge. He also said that it is looked at as "New" debt not part of the old. There are several places that have been listed here in this forumn that folks have also done the same thing pre-discharge. Its hard for me to wait until sept/oct because I lost my car to a wreck on may 1st which was no fault of my own and it has caused a huge hardship now without out it since I am disabled and have Dr appts I have to get to.

I would rather wait to get a better % rate if there is such a thing after bk7 but due to my situation I don't think I can. I live in a small town with no bus service so I am kind of stuck,