topic Re: Can I get a car loan of $35,170 after bankruptcy? in Auto Loans

Can I get a car loan of $35,170 after bankruptcy?

Anonymous — Sun, 14 Sep 2014 14:08:53 GMT

Hello everyone,

I'm trying to get some info on this question. I just got out of bankruptcy about 4 months ago(Discharged 4 months ago) and I wanted to know if I could get a $35,170 loan for a new car. I will be making a down payment for $7,000 on the car which will drop it down to $35,170 with tax, title, fees, etc. included. So the final price is $35,170. My current credit score is 523. I have been reading up a lot online and many say that yes I would be able to get the loan but the interest rates will be high. I want to be paying $590 per month for this car and based on $35,170@6.0% of interest is $583 a month for 72 months. I live with my brother and we split the rent of the house and he pays for all the utility bills except for electricity. Everything is under his name. So I basically pay $600 for rent and 200 for electricity. That is all the bills I have plus my phone which is $100 a month. I currently make close to $40,000 a year(Gross).

So to my questions.

Can I get approved for this loan?

Can I get the interest rate to be at 6.0% or is this just too much to ask for?

Can the 6.0% be negotiated if they are not giving it to me?

What would be the average interest rate under the circumstances I have provided?

All I care about is paying no more than $590 per month. I plan to keep this car in the family for years, well after it has been paid off. So with that being said, can I even extend my loan from 72 to 84 months just so that I can fall in that range of $550-$590 per month?

I would appreciate any advise you can give.

Thank you in advance.

Re: Can I get a car loan of $35,170 after bankruptcy?

pizzadude — Sun, 14 Sep 2014 14:51:32 GMT

I believe what you've found online so far is accurate. If you get approved it won't be at a 6% rate. Interest rates are somewhat negotiable depending on a number of factors, including down payment, previous auto loan history / amounts borrowed, credit, income etc.. If you just filed BK and also included a car loan in the BK then your odds will be much lower.

Re: Can I get a car loan of $35,170 after bankruptcy?

Anonymous — Sun, 14 Sep 2014 14:56:54 GMT

So what would be an average interest rate I should be looking to see with my circumstances? Can 8% be reasonable?

Re: Can I get a car loan of $35,170 after bankruptcy?

pizzadude — Sun, 14 Sep 2014 15:46:50 GMT

@Anonymous wrote:
So what would be an average interest rate I should be looking to see with my circumstances? Can 8% be reasonable?

If you do a search in the Auto forum you can see interest rates reported by people with recent BKs. Some over 20% some less.

Re: Can I get a car loan of $35,170 after bankruptcy?

0REDSOX7 — Sun, 14 Sep 2014 17:56:31 GMT

I was able to secure two auto loans five days post discharge back in February.

Rates were 12.99% and 18.99%. Each loan was for around 20K each.

I think you are being too optimistic with a 6% rate....

Our scores were low 600s (625 maybe??)

Re: Can I get a car loan of $35,170 after bankruptcy?

Anonymous — Sun, 14 Sep 2014 18:10:05 GMT

How much was your down payment? I have been reading up online that some people have been able to get 5.9% with Ford Credit right after the bankruptcy discharge. Could this be true? I have heard that ford financing is very helpful. This is the lender i will be using as the car i will be buying is a Ford.

Re: Can I get a car loan of $35,170 after bankruptcy?

0REDSOX7 — Sun, 14 Sep 2014 21:57:32 GMT

I put 500 down in each one. I was prepared to put more, but the finance manager told me even if I put 3K down, the rates were the same bc if the BK.

Re: Can I get a car loan of $35,170 after bankruptcy?

Creditaddict — Sun, 14 Sep 2014 23:05:12 GMT

who do you currently bank with?

do you have a relationship with any credit union?

have you started getting credit cards again?

what is the car?

Re: Can I get a car loan of $35,170 after bankruptcy?

Anonymous — Mon, 15 Sep 2014 00:07:13 GMT

I currently bank with PNC bank. I dont have any credit cards under my name but I am an authorized user for two credit cards that are under my brother.

I am planning on getting the new 2015 ford mustang GT premium.

I have been reading that ford credit bank is very bk friendly and have been reading some stories of people getting approved with 6% interest. Also buying a 40,000 dollar mustang. They too placed a 7,000 down payment which is what I am planning on doing also. I make 40,000 a year gross and have only a few bills. Plus I have been with my current job for almost 3 years.

Just wondering if with the 7,000 dollar down payment i can make that deal happen for 6%-8% interest. I know for 7,000 dealers will do everything possible to make a deal happen.

Re: Can I get a car loan of $35,170 after bankruptcy?

Creditaddict — Mon, 15 Sep 2014 00:12:47 GMT

1. Ford is easy beacuse they have to be to sell cars (sorry) but I think it's a huge mistake

2. if you are set on it then you need to get credit cards in your name (Secure) you need your score to come up before you try to buy car

2a. I would check capital one pre-approval (if you have to take secure, fine) I would put $1k on it

2b. PNC has a secured card I believe... I would put $1k on that also...

if you have to take that $2k from your down payment then you need to resave the $2k after opening the credit cards to get back to $7k down and see what your score does in a few months... might be surprised how quickly it starts to come up.

also have you pulled all your creidt reports and make sure all the accounts are reporting correctly after the bk?

Re: Can I get a car loan of $35,170 after bankruptcy?

0REDSOX7 — Mon, 15 Sep 2014 00:14:09 GMT

Outside of a wasted inquiry, what's the worst that could happen? They say no?

Re: Can I get a car loan of $35,170 after bankruptcy?

sports1965 — Mon, 15 Sep 2014 09:49:01 GMT

I am in the same situation

I also want to get an 2015 Mustang GT Premium

But my BK7 was discharged 4 years ago, reaffirmed and paid of my auto loan and had 4 auto loans in the past all paid as agreed.

I am also going to put down around $7000.

Re: Can I get a car loan of $35,170 after bankruptcy?

sccredit — Mon, 15 Sep 2014 22:22:21 GMT

I would be shocked if any dealer could pull off a $35k loan on $40k income, sub-600 FICo and straight out of BK, much less at 6%-8%. IF (and that is a big if) you can get approved at all I would caution you to start budgeting for a 13%+ Interest rate.

Re: Can I get a car loan of $35,170 after bankruptcy?

Anonymous — Mon, 15 Sep 2014 23:09:15 GMT

I had a 2012 mustang which cost me 38,000 a few year back before I did the BK and I was approved with a 7% interest for 72 months with a credit score of 578. I did put down 8,000 as down payment and at first they wanted to give me an interest of 12% but thanks to the downpayment i was able to negotiate the interest with the bank. And I was making 35k a year of income back then. So it is not at all so difficult to get a loan accepted if you make 35k a year or 40k. At first they did not want to give me the deal for a lower interest but by the time i got up from my chair and was about to walk out the door then all of a sudden they were able to work wonders. Believe me, nobody lets a downpayment like that walk out that easy. That is with ford credit bank. That is why I say they are great. Maybe with other banks it might be harder but for what I have experienced with ford is awesome.

Only difference from now and then is that I have my bankruptcy now. This is why I was asking for some info.

Furthermore, i went to ford today and am pleased to say that I have placed my order for my new 2015 mustang gt premium and was approved for 72 months with an 8.4% interest. Total loan was for 34,987 after the 7,000 down payment. It was a bit of hassle due to having to provide ford credit a lot of info proving my income and prove that i really had a lot of extra money left as i do not pay rent or mortgage. Since i live with my brother and only pay him half rent which is 600 and 200 for electricity. So hope this helps many people out there with my story.

So here is what the finance manager explained to me. When you get a discharge from bankruptcy you actually become a low risk for lenders since you know are free from all debts you had and now know that you have plenty of money to spend. Especially when you have a steady income and make more than 30K a year. Another major reason is that you are only allowed to do bankruptcy every 7 years, so this tells banks that you would not be such a high risk since you cannot be that crazy to make the same mistake so soon. Also, the down payment that you make on the car would actually allow you to keep the value of the car above what you would owe for it. So you would not have a negative equity. So even if you could not pay for the car the bank would just repo you and sell the car and they would still make money of it due to the big downpayment that you had made. I wont lie, when i first went in they were offering me 14% interest. But when I said no, they went in further and made it happen.

So basicly all the factors that helped this happen was 7k down payment. 40k year income. Steady job history, and a determination to have the deal you want or at least close to it. Believe me, when you are willing to put a 7k down payment, lenders will almost do anything to help you get close to where you want to be.

Again, this experience was with ford credit and like i said before ford credit is very helpful when purchasing a car with them.

Hope this helps other people.

Re: Can I get a car loan of $35,170 after bankruptcy?

0REDSOX7 — Tue, 16 Sep 2014 01:09:44 GMT

Also lenders know that you can't file again for seven years, so, if you screw up and default, they have you in their sights.

Good job on the car. Just asking, what's your monthly payment looking like?

Re: Can I get a car loan of $35,170 after bankruptcy?

sports1965 — Tue, 16 Sep 2014 01:19:09 GMT

When I apply for the loan to buy it , I expect to get approved for the best rate FORD offers

Re: Can I get a car loan of $35,170 after bankruptcy?

Anonymous — Tue, 16 Sep 2014 01:21:33 GMT

I will be paying $632 a month for it. It was originally $621 but 11 more was added for the GAP insurance. For the car that it is, the price, and my situation I think I came out with a great deal. I was so worried I was not going to get the deal I wanted. I really wanted to be around 6% interest but after reading some comments here Ithink it was too much to ask. So i just went with the 8.4

Cant wait to get my car.

It will be a long 2 to 3 months of waiting. That is when my new baby will arrive to the dealer

Re: Can I get a car loan of $35,170 after bankruptcy?

Anonymous — Tue, 16 Sep 2014 01:28:11 GMT

@sports1965 wrote:
When I apply for the loan to buy it , I expect to get approved for the best rate FORD offers

Sorry, what is your question?

If you are planning to do it with a 7k downpayment just remember you have the upper hand. They will start with a high interest. Make sure you dont fall for it. And if they keep giving you a high interest then just say thank you, get up, and start walking away. I assure you they will stop you from walking away and give you what you want or close to it. 7k downpayment is too tempting to let go. It worked for me.

Re: Can I get a car loan of $35,170 after bankruptcy?

0REDSOX7 — Tue, 16 Sep 2014 20:23:17 GMT

So with you waiting a few months, how does that work with financing? Do you start paying now or wait until it comes in?

Just curious how all that works.

Re: Can I get a car loan of $35,170 after bankruptcy?

sports1965 — Tue, 16 Sep 2014 20:34:32 GMT

He wasted an inquiry .

When the car comes in he's going to have to reapply for credit

I was told by my dealer to put $500 down right now to order the car and then when the car comes in that's when u apply for credit