topic Re: Long Time No See in Auto Loans

Long Time No See

Dj4Money — Wed, 26 Jun 2019 12:10:32 GMT

Many thanks to this community for the help, my credit after the repo dropped off went up to 720 across all three.

2018 hurt badly especially at the end and by Jan 2019 I no longer had my car (2016 Focus ST).

I filed Chapter 7 last month (2nd time, first time was in March), 341 Meeting is July 8th.

I spend WAY too much on rental cars ($1300-$1500).

What lenders can I work with that will accept Uber/Postmates as my income? One BK friendly website said his lenders wouldn't touch me because of my income.

I make plenty of it ($3K-$4K). Uber since 2015, Lyft since 2014 and Postmates since 2018.

However I am making the transition to another business and likely drop all rideshare/food delivery by 2021.

Using Credit Karma, it was suggested Road Loans would charge me 17.95% to borrow $16,000 peaking at $406 a month for 60 months or $364 for 72 months.

My old payment was $484 and I had no problem making it and it's not the reason my car was repossessed. I tried an experiment that failed and as I result my car was re'poed and wasted a payment in an effort to get back on track.

I know post BK with some credit card scoring tactics I can get a better rate but I really can't wait, I've already spent the last 4+ months using rentals cars.

Re: Long Time No See

Brian_Earl_Spilner — Wed, 26 Jun 2019 14:19:58 GMT

Try carvana

Re: Long Time No See

sccredit — Wed, 26 Jun 2019 21:17:39 GMT

+1 on Carvana. They offered me 11% post discharge.

Re: Long Time No See

Dj4Money — Thu, 27 Jun 2019 02:32:41 GMT

That is the key though. I checked Carvana's FAQ and it says at the bottom after saying all credit is welcome, no active bankruptcies.

Mine is active.

Of course I could get something from Drive time or Car Max. Both are bad, Drive time doesn't have any performance cars and Car Max overcharges compared to other options.

I would like another Focus ST, most from 2015-2018 are $20k and less. CPO's are $18k to $21k.

But being inside a BK means my interest rate will be double digits. I also have limited means so even coming with $500 for down payment would be tough. It took me 1.5 months to come up the $900 to pay a ticket and pay for my BK.

I found another thread and looked at Credit Acceptance, Westlake Financial and Avid Acceptance.

One car I want the dealer claims all credit accepted. However they likely think I'm pulling their chain since I live in Southern California and the dealer is in South Florida.

It's a great deal and I don't want to miss out. But I likely have to wait until my 341 meeting in twelve days.

I was hoping get something sooner.

Re: Long Time No See

Anonymous — Thu, 27 Jun 2019 13:28:08 GMT

You'll get stuck with a very high interest rate and it will be a struggle to get an actual approval before the bankruptcy is discharged. One way to tackle this is to get a loan you can live with for 6-9 months with a plan to refinance. Key to making that successful is ensuring the loan to value ratio is near or under 100% of fair market value, ideally 80-90%. Many folks end up with too much negative equity to refinance because they added protection plans, didn't negotiate a good sales price (dealers take advantage of subprime buyers), rolled in negative equity or some combination of all of the above. Loan to value is less crucial as your credit improves so the combination of having a good loan to value off the bat combined with some good rebuilding coming out of the bankruptcy is crucial.

Roadloans is terrible to deal with and they require dealers to take some of the risk and pay them to do a loan with you so that compromises your ability to get a good price. I was stuck with them because of a situation in 2014, fortunately I was able to refinance with Navy 5 months later for 1/3 rd of the interest that Roadloans charged. I put 5k down on that car and it was considered new when I refinanced so that made it all possible.

Best of luck

Re: Long Time No See

Dj4Money — Thu, 27 Jun 2019 17:58:12 GMT

The only problem with high interest is the car's value. With used cars it has deprecated already so the sting hurts less.

I tried to refi the Focus ST with my CU, too upside-down after a year and half.

I checked CarMax because RoadLoans says they are their preferred lender. As I said they have what I am looking for but they overcharge unless it has extreme mileage.

Example 2015 Focus ST with 122K = $12,998 vs 2015 Focus ST with 49K = $17,998 both ST1/400A base options.

A quick search on CarGurus turns up the color I want (Race Red) with slightly more miles than the 49K example but more options (ST2 or ST3) in the same 2015-2018 facelift which I prefer over the original 2013-2014 design.

All for less than $17K, of course many of those cars are out of state, no problem.

I also looked at Fiesta ST's on CarMax they run about the same price ($16,998), far less using Autotempest/CarGuru/Autotrader.

The rental(s) cost me this month so far = $927.25 which includes Uber since it takes me 50 mins to walk home. Not a problem but when it's 2:30 in the morning, I rather hit the pillow at 2:45-3:00 than 3:30-3:45.

The last 5 months I spent more money than I make. Like I said it's a struggle to save a significant amount. Things have changed just in the last 24 hours but in the very near future maximum earning potential is still limited.

Just wanted to make sure I didn't leave any options out that weren't available in 2014. It's mostly the same if you have serious credit issues the same actors are out there, that part didn't change.

Post BK my rate would drop from say 15-17% down to just over 10%, so it would pay to wait but it would cost me another $1,000+ leaving me without car when I'm not working.

Re: Long Time No See

Anonymous — Sun, 30 Jun 2019 04:40:58 GMT

"But being inside a BK means my interest rate will be double digits. I also have limited means so even coming with $500 for down payment would be tough. It took me 1.5 months to come up the $900 to pay a ticket and pay for my BK."
How are you going to pay a $500 a month car note plus insurance if it took you two months to come up with 900 bucks? Your first post indicates your clearing 4k a month, so that means 1 of 2 things, you have some hefty obligations soaking up your income or b, your not clearing 4k a month. In either scenario it does not appear you are setting your self up for financial recovery post bk if your maxing out your income to get a used car. What happens the first time it breaks? Your going to be up a creak. If you must buy a car it should not be based on it performance. It should be the best value and deal you can get for the cheapest you can get, otherwise your perpetually going to fail. And a judge may not proceed with your dicharge if you are make irresponsible purchase/finance decisions ahead of your hearing

Re: Long Time No See

Brian_Earl_Spilner — Sun, 30 Jun 2019 04:52:07 GMT

That's too bad because carvana is owned by DriveTime. I know they're trying to distance themselves, but still.

Re: Long Time No See

Dj4Money — Mon, 01 Jul 2019 10:52:41 GMT

Did you read the entire thing or just take parts of it you found interesting enough to reply to?

I didn't disclose everything otherwise my post would be longer and I rather not have to read fake condolences replies.

When I am able to work unencumbered I do make $4K a month. With restrictions it's $3K a month, if you want proof I have my recent tax returns and can also post screen shots of various apps, including my B of A account.

My previous car payment with insurance was $654 and I had NO PROBLEM paying it. In an effort to spend more time with my parents, now that my mother is finally not in pain anymore I tried to find a way to earn money without leaving the house. So I let TD Auto know I wasn't going to pay a payment until Dec 2018, this was Oct 2018. I did make a payment Jan 2, 2019 and stated (transcripts to prove it) I would make another payment before the end of the month.

Jan 29th 2019 they repo'ed the car after I returned home from an errand not even 15 mins after I shut the front door. A neighbor across the street watched them pull the car onto the flat bed. I had more than enough money make another payment, nobody came to the door to ask for it, I even had cash...

I should have filed BK right there because I tried to do the right thing by paying the back payments to get it back. I am and still not in a position to not have my own car. However I didn't file then, I filed after they sent my car to be auctioned off. The filing stopped them from selling it. However my licence was suspended from not going to a court date for a traffic ticket. It took me 1.5 months to save for that and pay the BK ($898).

By the time I got my 2nd BK filed, the car had been sold two weeks before. Somebody from Texas bought it, they got a hell of a deal. It made 330 whp and we hadn't even really started tuning it up as we reached the limits of the stock clutch. They got a free exhaust system ($1,000) because I have known the owner of the company for 25 years and always give me the hook up.

I broke the motor in the ST by not listening to my own advice, it cost me $500 to replace it with used one out of a Fusion; Ecoboost 2.0L is used in the Fusion, Edge, Escape and Linclon MKC. I paid a friend to remove the original engine, replace with that one, installed a new intercooler because I needed one, but I also took the opportunity to upgrade the turbocharger.

Those are the least of my concerns.

Re: Long Time No See

Dj4Money — Mon, 01 Jul 2019 11:13:42 GMT

Carvana like everybody else will deal with me post BK.

I just applied to New Road Loans since that was a Credit Karma offer. Well I don't know what their income requirements are but I don't meet them, I was denied based on income.

I am not going to give up especially with the 4th of July sales week to come. CarZing pre-approve me but I would have to put $3500 down, those are primarily used cars.

Just doing some rough math on a $12,599 used Ford Fiesta ST, about $1,200 for taxes and license fees, put down $3500 would have the loan amount about $10,300.

Auto Credit Express approved me as well but the only dealer that contacted me was South Bay Nissan for those familar with Southern California.

Not interested in any Nissan. Since nothing has changed from when I filed BK the first time, applied at Auto Credit Express and then filed again, my guess is max loan amount is about $10,000. The Nissan Versa sedan is the cheapest car in America, around $12,500 after rebate, this is likely what would be offered to me, no thanks.

That sucks because $16,000 was max with a 6 year old repo and was able to get my 2015 Hyundai Accent Sport Hatchback for that much, it helped that I bought it out of state so because if I bought it locally the taxes would have pushed me out and I would have to put money down to cover it.

As it was I didn't put down a penny. My desire to get a manual transmission Accent Sport and get a good price lead me to Kirkland Ford/Hyundai in Kirkland, WA.

Re: Long Time No See

Anonymous — Mon, 01 Jul 2019 22:20:41 GMT

You are going to run into quite a few issues:

VERY FEW lender's will touch an open Chapter 7, in addition those that do specialize in open Ch7 Auto lending are going to have an issue with your income because I would think you are a 1099 employee through the ride share companies. In which case most will want a tax return to prove income, if you have filed taxes on your income in the past. They will look at your 1040 schedule C, typically line 31 to calculate your income. Other lender's will use 3 to 6 month's of bank statement's to calculate income, where they will take your deposits and add them together then divide by number of month's of bank statements to calculate monthly income.

Another huge issue you will run into, is the fact that your vehicle is being used for ride share services. Most all indirect lender's (indirect lender's are lender's that dealership's use) will absolutely not finance a vehicle that is going to be used for ride share services as it results in faster depreciation of their collateral.

In addition, unless you have terrific credit history pre BK filing and you are placed in a high tier, most likely you will need at the very least $1,000 cash or equity down, or 10% of the sales price depending on the bank/and tiering.

CPS (consumer portfolio services) is a lender who will finance someone in an open Ch7 provided you have had your meeting with creditor's already, and they will finance 1099 employee's with documentation as stated above, but they will not finance vehicles intended for ride share services.

My advice: Buy a car for cash to get you by until you are discharged from your bankruptcy, and able to rebuild your credit to get a better approval (less money down, lower APR, etc) and find a different job that isn't so reliant on your vehicle situation. Once you are in a better spot, then start doing ride shares on the side again or start doing that full time once you've obtained a decent vehicle and established an emergency fund.

One last note, I would also look at a more practical car if your doing ride share services, a nice 2013+ Honda civic/accord with decently low miles would be a much better fit for that type of work.

Good luck.

Re: Long Time No See

Dj4Money — Tue, 02 Jul 2019 05:27:15 GMT

Where is this mystery cash I'm suppose to save going to come from?

I just spend $45 on a rental car I can't use because my phone won't stay charged for more than 21%. I attempted to buy another phone but it was getting late and I needed to make sure my father got something to eat. He no longer prepares is own food, I have to do it.

So I can't work and I didn't buy another phone. Even if I did it's 9:49 PM PST it's now pass the prime earning hours for Postmates.

I am going to be out about $52 and didn't earn a penny today. This happens way too often.

July - Money spent $2334, Money made $2149 ($185 negative)

May - Money spent $3728, Money made $3542 ($186 negative)

April - Money spent $2663, Money made $3046 ($383 positive)

I can go back further but you get the point, at least I hope you do.

The plan is to have around $1000 by my 341 meeting. In the meantime I will negotiate the price on a new Fiesta ST, CPO Focus ST or CPO Fiesta ST. I will let the dealer who submits the best price figure out how to get me bought. Loan amount will be $20,000 max and I'll even buy out of state to avoid rolling taxes into the loan if necessary.

If I can't get something done by July 8th, I'll just muddle through and I should be released in August.

Re: Long Time No See

Dj4Money — Wed, 10 Jul 2019 22:23:41 GMT

Slight update

341 meeting went off without a hitch. Next up meeting with creditors.

Dealers are fairly agreessive, nothing unsual about that. '19 Fiest ST MRSP hovers around $23K give or take options. Got that down to $19,665 with Moonroof, which is $17,165 after rebate. That beats the previous best deal by about $650; I think I go a bit further no haggling just dealers matching or beating each other.

The CPO cars I was looking at both sold over the holiday weekend.

Not many CPO's out there.

Also looking at CPO, both cars I had my eye were sold over the holiday weekend. Those were the lowest priced CPO's for 500 miles....

One dealer got rude when I asked them to not just price match the car sold but to beat it.

Re: Long Time No See

Dj4Money — Tue, 06 Aug 2019 22:07:00 GMT

No luck. CPS, Roadloans, even United said no.

Most said open bankruptcy. One refused based on gig economy income. Max loan amount went down to $11k and still no luck.

Going to wait until I'm discharged. Spending $30-$40 a day to keep working, oh well.