topic Re: Need a $5K Loan For A Used Car, 14 Months Past BK7 Discharge Best Options? in Auto Loans

Need a $5K Loan For A Used Car, 14 Months Past BK7 Discharge Best Options?

Insoc — Tue, 07 Oct 2014 01:49:11 GMT

I am in need of 2nd car for the family, currently we only have one car. It's financed and was reaffirmed during my Chap. 7 BK, never late and current. My wife and I also have excellent car finaincing and leasing history, that is no repos, late payments, or negatives in terms of cars financed or leased.

So I'm looking at used higher mileage Honda or Toyotas, that are in the 70 to 100K mileage range, which places a few in the $5 to 6K range in my area. At the same time I'm hearing and reading I'll have better luck leasing something again, instead of getting a loan for $5K.

So for now I'm looking at finding financing possibly though a local CU but I have not done any investigating yet to see if they are post-BK friendly? What other options are available, Cap One Blank Check won't work due to the high mileage and age of the cars in that price range.

Am I stuck in sub-prime lending for this or does the Enhanced Auto Fico score come into play here?

Re: Need a $5K Loan For A Used Car, 14 Months Past BK7 Discharge Best Options?

0REDSOX7 — Tue, 07 Oct 2014 12:29:58 GMT

There are minimums loan amounts for auto loans, usually 7500 or so, not to mention LTV and mileage limits.

If you can find a lender that uses the FICO Auto Enhanced score, you may be okay, but expect to have to borrow more.

Have you considered a personal loan?

Re: Need a $5K Loan For A Used Car, 14 Months Past BK7 Discharge Best Options?

fury1995 — Thu, 09 Oct 2014 01:16:35 GMT

@Insoc wrote:
I am in need of 2nd car for the family, currently we only have one car. It's financed and was reaffirmed during my Chap. 7 BK, never late and current. My wife and I also have excellent car finaincing and leasing history, that is no repos, late payments, or negatives in terms of cars financed or leased.

So I'm looking at used higher mileage Honda or Toyotas, that are in the 70 to 100K mileage range, which places a few in the $5 to 6K range in my area. At the same time I'm hearing and reading I'll have better luck leasing something again, instead of getting a loan for $5K.

So for now I'm looking at finding financing possibly though a local CU but I have not done any investigating yet to see if they are post-BK friendly? What other options are available, Cap One Blank Check won't work due to the high mileage and age of the cars in that price range.

Am I stuck in sub-prime lending for this or does the Enhanced Auto Fico score come into play here?

Capital One will sometimes finance discharged bankruptcies.. so long as it is indeed discharged and you didn't take them down in the process. You may have to apply jointly as most lender in your situation will only allow one car loan on any individual applicant (most trade open auto) on their approvals. Wells Fargo may also if the same situation applies... almost always you will need to borrow at least $7K or higher after your down payment and taxes, fees..

Re: Need a $5K Loan For A Used Car, 14 Months Past BK7 Discharge Best Options?

fury1995 — Thu, 09 Oct 2014 01:17:42 GMT

Also, forgot to mention.. Kia Motors Financial and or Hyundai Credit will take you and put you in a NEW car in a heartbeat..

Re: Need a $5K Loan For A Used Car, 14 Months Past BK7 Discharge Best Options?

Insoc — Thu, 09 Oct 2014 01:37:17 GMT

I financed a brand new car a month before filing, no issues or lates, my wife's car was leased from the same location 2+ years prior, had 1 year left on the lease at the time. I reaffirmed the financed car and assumed the lease, the lease went back a few months ago so there is only one car in the family, was offered another lease (prequalified) from the same place but passed since my wife lost her job and has not landed a new one yet but she cannot get a job without a car and vice versa.

So I'm thinking of just buying a high mileage reliable car and see plenty in the price range $5 to $7K, Honda and Toyotas all are less than 100K in miles, reasons being I do not want to go over budget with a new car or a new lease at the moment. Thinking that in 6 months to a year my credit will be better and possibly my wife will have a job and can handle the payments herself. Since I'm the only one working and have the best credit, I would have to be the sole borrower and put the car in my name.

I am checking with some local Credit Uniions to see if they will work with me.

Re: Need a $5K Loan For A Used Car, 14 Months Past BK7 Discharge Best Options?

fury1995 — Thu, 09 Oct 2014 01:41:19 GMT

@Insoc wrote:
I financed a brand new car a month before filing, no issues or lates, my wife's car was leased from the same location 2+ years prior, had 1 year left on the lease at the time. I reaffirmed the financed car and assumed the lease, the lease went back a few months ago so there is only one car in the family, was offered another lease (prequalified) from the same place but passed since my wife lost her job and has not landed a new one yet but she cannot get a job without a car and vice versa.

So I'm thinking of just buying a high mileage reliable car and see plenty in the price range $5 to $7K, Honda and Toyotas all are less than 100K in miles, reasons being I do not want to go over budget with a new car or a new lease at the moment. Thinking that in 6 months to a year my credit will be better and possibly my wife will have a job and can handle the payments herself. Since I'm the only one working and have the best credit, I would have to be the sole borrower and put the car in my name.

I am checking with some local Credit Uniions to see if they will work with me.

You do not have to have a second income for a joint application. The whole reason for having a joint applicant is to make evident to a bank why you need a second car. Two drivers, two cars.. no requirement for two incomes.