topic Re: Auto loan after chapter 7 discharge help in Bankruptcy

Auto loan after chapter 7 discharge help

Anonymous — Sat, 16 Sep 2017 00:40:20 GMT

I get discharged next week on sept 22 and I am wondering has anyone had any luck getting an auto loan fresh out of bk ? With no money down? Right now my credit scores are in the low-mid 500's but again this is before discharge so I'm not sure how much they will drop or rise after. Any help would be mucho appreciated .

Also right now I have a secured capital one credit card for $200

my income is $2500 . I had one guy from the dealership tell me after bk it's more so if you have the income. I'm looking to purchase a vehicle around 30-40,000 (jeep, camaro) but I also need to be realistic. What were some interest rates you guys received fresh out of bk?

Re: Auto loan after chapter 7 discharge help

shadanat — Sat, 16 Sep 2017 15:14:42 GMT

I got an auto loan during bankruptcy as I surrendered my previous car. The interest rate is 15.29. My discharge is scheduled for the 22nd of this month and I hope to refinance within a month or two.

My scores were EX: 522 TU: 533 EQ: 550 on 8/24 when I went to the dealership. I did not have to put any money down. The car had rebates which we used in lieu of a down payment.

With your monthly income, $30-$40K is a very expensive car.

Re: Auto loan after chapter 7 discharge help

Anonymous — Sat, 16 Sep 2017 15:37:52 GMT

What dealership did you go through? What finance company?

Re: Auto loan after chapter 7 discharge help

Anonymous — Sat, 16 Sep 2017 16:27:22 GMT

I got esxcellent terms (6.8%) and had an easy time with Carfinance.com this month. I was discharged in the Spring of this year. The loan was for a specified amount, which means it could have been no money down had I chosen a car that cost less than that. I am well-employed. The car had to be from a franchised dealer in my state - one that sold new and used cars. The paperwork was easy and the turnaround time was quick. I was surprised. Good luck.

Re: Auto loan after chapter 7 discharge help

Anonymous — Sat, 16 Sep 2017 17:04:26 GMT

30-40k car on 2500/month income?

is this gross income or net income?

because the rule of thumb is every 5k is about 100 a month in payments... in the financing terms after bk i would say about 120 a month.

so youre looking at 720-960/month on 2500 a month income... without even including registration, insurance, gas or maintenance???

if thats a gross monthly income that puts you at over 38% LTI on one single installment thats a secured asset.

many lenders wouldn't approve that honestly.

Re: Auto loan after chapter 7 discharge help

shadanat — Sun, 17 Sep 2017 01:53:24 GMT

I went to Ourisman Hyundai Madza. The have 1st, 2nd, and 3rd chance financing. It's financed through First Investors Financial but I will be refinancing after discharge.

Re: Auto loan after chapter 7 discharge help

Anonymous — Sun, 17 Sep 2017 02:37:21 GMT

We used carfinance.com 6 months after DC and were approved for 25k at 7%...they had no problem giving us 37k for the same rate but we had the income to support it and did a decent rebuild prior to applying. Ally And Cap One also approved us, but at 8.5%. If you are only bringing home 2500 a month I would be looking at something much cheaper than a Jeep or Camaro.

Re: Auto loan after chapter 7 discharge help

Anonymous — Wed, 20 Sep 2017 21:33:45 GMT

@Anonymous wrote:
I get discharged next week on sept 22 and I am wondering has anyone had any luck getting an auto loan fresh out of bk ? With no money down? Right now my credit scores are in the low-mid 500's but again this is before discharge so I'm not sure how much they will drop or rise after. Any help would be mucho appreciated .

Also right now I have a secured capital one credit card for $200
my income is $2500 . I had one guy from the dealership tell me after bk it's more so if you have the income. I'm looking to purchase a vehicle around 30-40,000 (jeep, camaro) but I also need to be realistic. What were some interest rates you guys received fresh out of bk?

If you can wait 6 months I would suggest doing so. You will likely get a much better interest rate. In the meantime work on establishing two secured credit cards and a small secure personal loan to get your scores up.

Re: Auto loan after chapter 7 discharge help

Anonymous — Wed, 20 Sep 2017 21:35:16 GMT

@shadanat wrote:
I got an auto loan during bankruptcy as I surrendered my previous car. The interest rate is 15.29. My discharge is scheduled for the 22nd of this month and I hope to refinance within a month or two.

My scores were EX: 522 TU: 533 EQ: 550 on 8/24 when I went to the dealership. I did not have to put any money down. The car had rebates which we used in lieu of a down payment.

With your monthly income, $30-$40K is a very expensive car.

Ooohhh. yeah, I missed that. That is NOT realistic at all.

Re: Auto loan after chapter 7 discharge help

Anonymous — Wed, 20 Sep 2017 21:37:34 GMT

@Anonymous wrote:
@shadanat wrote:
I got an auto loan during bankruptcy as I surrendered my previous car. The interest rate is 15.29. My discharge is scheduled for the 22nd of this month and I hope to refinance within a month or two.

My scores were EX: 522 TU: 533 EQ: 550 on 8/24 when I went to the dealership. I did not have to put any money down. The car had rebates which we used in lieu of a down payment.

With your monthly income, $30-$40K is a very expensive car.
Ooohhh. yeah, I missed that. That is NOT realistic at all.

IMO, OP should be looking in the $15K range.

Re: Auto loan after chapter 7 discharge help

JGGM — Sat, 23 Sep 2017 15:52:47 GMT

You do realize a $30-40k car could put you back into a situation where you can't pay things right? $30,000 at 18% interest for 72 months is $684. Even if you can get approved for such loan, why wouldn't you take a step back and find a $12k car that will get you to and from wherever you need to go? I don't mean to sound harsh, but you're about to complete a Chapter 7 BK - wouldn't it be more wise to focus on never being in this situation again?

Re: Auto loan after chapter 7 discharge help

Anonymous — Sat, 23 Sep 2017 16:18:08 GMT

You are right! you guys are all right. I think I just was so happy to be debt free again and I got overly excited. I should take a step back and start with a lower loan and work my way up. I appreciate all the help and responses thank you!!

Re: Auto loan after chapter 7 discharge help

JGGM — Sat, 23 Sep 2017 16:23:58 GMT

@Anonymous wrote:
You are right! you guys are all right. I think I just was so happy to be debt free again and I got overly excited. I should take a step back and start with a lower loan and work my way up. I appreciate all the help and responses thank you!!

I think down the road you'll be happy with that decision. I understand being excited, and it is a huge milestone.