topic Re: Auto loan 1 year after Chapter 7 in Auto Loans

Auto loan 1 year after Chapter 7

taracer — Tue, 04 Mar 2014 06:08:29 GMT

I'm a year out of my Chapter 7 discharge, and my 12 year old car is just about dead. I surrendered a auto in the bankruptcy, but what do you think my chances are at getting a car loan now? Just figured I'd ask here before maybe wasting my time.

Credit Score: EX 614, EQ 626, TU 642

AAoA: 5 years

# of positive trade lines: 3

# of negative trade lines: 7, all show included in bankruptcy

Income:60000

Lenght of Employment: 9 years

Previous Loan Experience:

Debt-to-Income (DTI): 19

Year of Car: 2013

Miles: 4500

Purchase/Refinance: purchase

Requested loan term (XX Months): 60

Down payment amount: 7000

Co-borrower/Co-Signer: No

Other: Price of car is 27000, but I could probally find a similar one for a few thousand less.

Re: Auto loan 1 year after Chapter 7

Remember0 — Tue, 04 Mar 2014 06:42:41 GMT

I predict approval. APR might be a bit high due to BK. I'm guessing 7%-14% with those low-600 FICOs. The auto loan IIB'ed might push up apr to the 12-18% range, depending on if lender uses auto enhanced FICO. A little downpayment may help reduce the APR a bit, but it won't help THAT much.

But overall, you'll be approved.

Re: Auto loan 1 year after Chapter 7

taracer — Tue, 04 Mar 2014 07:22:01 GMT

Thanks for that reply, I guess I'll have to set my sights a bit lower.

Re: Auto loan 1 year after Chapter 7

0REDSOX7 — Tue, 04 Mar 2014 15:36:15 GMT

I just did what you did - except I was five days post BK discharge for Ch. 7 and scores were in the 580s. I put 500 down and got 12.99 percent - not too bad, but I will be re-financing in a year.

Re: Auto loan 1 year after Chapter 7

Remember0 — Tue, 04 Mar 2014 19:11:14 GMT

@taracer wrote:
Thanks for that reply, I guess I'll have to set my sights a bit lower.

I'd apply, see what you get, and see if it's affordable! It's very hard to predict rates, you'll be almost certainly approved though

Re: Auto loan 1 year after Chapter 7

taracer — Tue, 04 Mar 2014 22:38:35 GMT

Approved 5 days post bankruptcy, that's great. Did you surrender a car in the bankruptcy?

Re: Auto loan 1 year after Chapter 7

taracer — Tue, 04 Mar 2014 22:43:40 GMT

I'll give it a try, I was thinking I'd be rejected but your comments make me think I may have a chance.

Re: Auto loan 1 year after Chapter 7

Anonymous — Sun, 16 Mar 2014 16:47:57 GMT

I was dicharged feb 2014, i had to got to a coupler of dealer. Your going to be better off get a new 2014 car, If you want a low interest. I recieve 5.9 interest, with no money down, on a 2014 malibu lt, through dealer financing, they used Ally on March 2014. The first offer the gave me was 9.9% interest through gm financing, I walked away and they called me back withe the 5.9% interest rate throught ally. Used car dealers are going to try to get you 20 % insterest, so defintely shop around. You should be able to get a low interest, since you have been dischared from bk , this means you are no longer a risk. Hope this helps. Yes, i surrender my car, and my score was 544

Re: Auto loan 1 year after Chapter 7

Anonymous — Mon, 17 Mar 2014 15:43:05 GMT

Not commenting personal here but being just out of a chapter 7 does NOT mean you are no longer a risk. It just means you can't wipe out the debt through the federal bankruptcy laws.

Millions of people have loans they simply stop paying on. They default, have a car repoed then just blow off the collection agencies when they try to get the money. The biggest indicator of of being a good future credit risk is being a good past credit risk. Again not being personal to anyone, but I thought that might be clarified .. Just one old tired guys opinion