Best way to purchase a car post-bankruptcy

[missgaonmymind]

Hey guys,

I would like some advice on obtaining a car, once I'm discharged. After long and hard thinking, I just filed 7/15. I included my car because I figured to still owe $15k on a 2009 with a 21%interest rate just made sense. So while I haven't gotten my court date, yet I know not long after my car will be gone and this is going to be a little challenging to be without my own car for a while. What is the best course of action to obtain a car once I'm discharged? I live in Atlanta, GA. Any suggestions with dealerships? How soon I should wait? Try to get financing from a CU? Any advice woul be helpful.

[TRC_WA]

I had to go with crappy dealer financing 8.9% when I bought my car a week after discharge in May 2013 and mine was Ch 13... not a 7.

Almost a year later, in March 2014 was I able to get my CU to refinance me down to 3.99%.

No matter which route you take you aren't going to get a favorable loan right away...

[cirrus00]

I did the same thing as you & I was very worried about having a car during this process. I'm a single mother & I have to get to work!
since I did not reaffirm my car I stopped paying on it when I filed. They didn't file an adversary proceeding, so I was able to drive it until discharge. The day after I was discharged I went and purchased a new car. I was able to get it with no down payment. Of course I got a crappy interest rate, since it was so quick, but I am going to refinance soon to lower my payment.
I was really nervous about this whole thing and scared I would lose my car before I was discharged, but everything worked out! & I was able to get a better car!

[0REDSOX7]

The key to getting this to work is to make sure your credit reports are updated before your discharge.

I got two cars five days post BK discharge (was a Ch 7) and got 12.99% on both of them)

The key here again is to make sure all your accounts are showing a zero balance and IIB so when you get your discharge, that is all that needs to be updated on your credit report and you can take your discharge orders to a dealer and go with it.

I also went and talked to several dealers about three weeks before discharge and see what there requirements were - I was upfront and honest with them and they talked to me about what they think I could get, etc...

[missgaonmymind]

Thank you so much for your response! This is extremely helpful!

[missgaonmymind]

Thanks for taking the time to response. This helps me tremendously.

[missgaonmymind]

Thanks for your response. 8.9% is a much better position than 21%. Thats one of the reasons I decided to give up the vehicle I was in. Wow 3.99%? Thats the track im trying to be on!

[somotao]

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@missgaonmymind wrote:
Thanks for your response. 8.9% is a much better position than 21%. Thats one of the reasons I decided to give up the vehicle I was in. Wow 3.99%? Thats the track im trying to be on!

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Since you're in Atlanta, you should check out Georgia's Own Credit Union, they are BK friendly. Toyota is also BK friendly.

[grassfeeder]

3 months post discharge I got 10.99% through Wells Fargo.  I refi'd with NFCU after 12 months down to 7%.  I just recently traded that car in to BMW and they gave me 0.9% on a CPO car exactly 24 months post filing.

[missgaonmymind]

Thanks for your response. I'm really excited about taking control and getting my financial house in order. Even though I'm doing the BK, I've gotten much more wiser financially. In addition, receiving advice and recommendations from those who've been there, and done that, is very encouraging. Thanks!!