What Can I Expect When I Buy A Car Today?

[Anonymous]

I am planning on buying a 2009 Toyota Camry LE Automatic.

I have a bankrupty on my record, it was filed 3 years ago and has been discharged.

My FICO EQ score is 649.

I was denied twice for a loan from Road Loans. They claim insufficient comparable high credit.

I am worried that when I go to the dealership, I won't get approved and may need a cosigner.

I am putting $11,500 as a downpayment, the car is worth $22,000.

I only have one credit card from Victoria's Secret which has been open since 2004, and I always pay on time, I pay it off each month.

What can I expect when I go to the dealership today?

Unfortunately I can't wait to purchase a car, the one i'm currently driving is not in good condition.

Any advice/comments welcome!

Message Edited by darling on 07-31-2008 10:20 AM

[Anonymous]

I would give serious consideration to applying with a local credit union - especially with that down payment.

[Anonymous]

Almost anybody will finance a car with a 50% down. In fact, I'm quite sure Road Loans did not undersd that you had a 50% down when they denied you credit.

[BuckiRob]

How about this idea.... Instead of putting 11500 down on a new car find a late model used car and pay CASH for it.

That nice shiny new 2009 is an ego thing if you are honest with yourself.  In 3 years that 22K car will be worth less than 14500 -15000.  

Why not take that cash and pay cash for a very nice late model used car that your mechanic has gone over with a fine tooth comb?   You might want to blame a medical problem, divorce or loss of job as the reason you got into trouble with your credit rating in the first place but the reality is that one really only needs a high credit score to get the best rates for a home mortgage.

[Anonymous]

I bought a fantastic used car (2004) and I bet it smells just as new, as that 2009 little number you want.

Get your credit built up, paying for a great used car on time each month, and you won't have to worry if you get approved when you walk into a dealership.

[Anonymous]

My situation is nearly identical:

• $10k to put down
• Plan complete Sep 1, Ch 13 discharge pending
• Scores in mid- to upper-600s
• Stable employment history and sufficient income to support car payments

My options are:

• Purchase a used car
• Borrow against my 401(k)
• Attempt financing

I've read elsewhere that it's important to reestablish credit, and that captive lenders (Ford Motor Credit, GMAC, etc) are more likely to lend to someone with a past BK. I also believe that lower cost of financing is likely from a captive lender. Not sure if that has changed with the recent collapse of so many mortgage lenders.

Any comments?