topic Re: Financing A Vehicle Post-Bankruptcy in Bankruptcy

Financing A Vehicle Post-Bankruptcy

Anonymous — Sun, 08 Mar 2020 02:46:43 GMT

Hello All!

I discharged from bankruptcy 11 months ago and I am still having issues with getting an auto loan!

I tried the Capital One Auto Navitagor but I always get denied from them...

I tried CPS but that resulted in a huge downpayment ($7,000 on a $16,000 car)...

I tried Road Loans but I was denied...
I tried letting the dealership help me with getting an auto loan but that only resulted in a ton of inquiries...

I really don't know what else to do and Uber is costing me too much a month now. After I was discharged from bankruptcy, I was blessed to get a promotion that more than doubled my annual salary (I went from $40,000 annually to $100,000 annually) but as part of my job I have to travel to properties that are sometimes 100+ miles away!

It annoys me when I see people coming out of bankruptcy getting approved for $30,000+ for car loans and one year after discharge I can't even get a $15,000 1 or 2 year old Certified Pre-Owned vehicle!!!

Can someone tell me if I am missing something??? I have no missed payments since discharge, my utilization fluctuates from 3% to 9%, I have three credit cards that give me $1,200 in credit limits, everything is reporting correctly...

Does anyone know any finance companies that will even try to give me an loan other than the ones mentioned above??? I am not wanting to spend another $5,000 on a cash car that will be dead in 3 months!

Re: Financing A Vehicle Post-Bankruptcy

Bankrupt2019 — Sun, 08 Mar 2020 05:58:59 GMT

Is what's listed in your signature current and all that you presently have? If so it seems like you need to work harder towards your rebuild so that you may qualify for better loans in the future!

I know it's hard, but try not to dwell on others successes but see what you need to do to make them your own!

3 credit card minimum

and you could denfinitly use an installment loan; SSL or credit builder

Re: Financing A Vehicle Post-Bankruptcy

Phoenixupward — Sun, 08 Mar 2020 05:29:50 GMT

Have you tried GM financial? They gave me a loan 6 mos post bankruptcy. Your income is solid but your signature is weak. You need 3 credit cards and an installment loan to maximize your fico score. For your third card add Merrick Bank, they have a prequalify tool and/or Blaze Mastercard. For an installment loan, try self lender.

Good Luck.

Re: Financing A Vehicle Post-Bankruptcy

TattnallTrio — Sun, 08 Mar 2020 05:42:13 GMT

I was approved with a $32k annual salary for a $19,000 brand new Corolla LE from Carmax, at 18.52% for 72 months. I put $500 down on the application and they responded stating I needed $400 more so it was $900 down got me behind the wheel.
Carmax has 2 stores that sell brand new Toyota's and that's in Laurel, MD and Kenosha, Wisconsin. Otherwise I'd consider them for a used car but their used are over priced and the majority are former rentals. Which are often beaten pretty hard.

Re: Financing A Vehicle Post-Bankruptcy

TattnallTrio — Sun, 08 Mar 2020 05:43:08 GMT

I'd suggest a Capital One plain MasterCard before I recommend Blaze Mastercard.

Re: Financing A Vehicle Post-Bankruptcy

Anonymous — Sun, 08 Mar 2020 07:14:07 GMT

Hi -

I actually do have a third credit card with my credit union with a $500 limit.

I have an installment loan from Navient for about $28,000 and I pay extra towards the loan every month (was around $70,000)

Capital One card will not pre-approve me so I applied anyways, I was denied due to the bankruptcy (they were not included in bankruptcy and I did not have an account with them prior to bankruptcy).

I applied for Blaze but I got the generic "we will let you know something in about 14 days"

Carmax is heavily overpriced and high milaged cars at least in my area (cars not even made anymore was $15,000+ with over 100,000)

Re: Financing A Vehicle Post-Bankruptcy

Dj4Money — Mon, 09 Mar 2020 17:22:45 GMT

What vehicle are you looking at?

6 month and half months from discharge I was only approved by Westlake Finacial and Carvana.

My scores are: EX Auto 8 (545), EQ (622) and TU (546)

They are all up 75+ points from where they were at discharge and after two more cards reported before the start of 2020.

I will be playing my balances down to below 29.8% but it will take the whole month for my scores to update with that final balance. Two cards will report this week. But it will put my balances around 40% down from 76% last reported at the end of Feb 2020. To get down to under 30% it will take another 10 days for my scores to update.

I rent cars to continue working which is similar to what your doing by using Uber.

Only approvals I had were Westlake Finacial ($20,000 TTL) and Carvana ($2,600 down, 6-27%, $82xx TTL + downpayment = $10,000 max)

I decided to work on getting my scores up. So now it's just wait and see. I tried DCU recently because my EQ Mortgage 5 is 620 but they denied me because of my BK, the other reasons were less important as it was tied to the amount I requested.

Westlake is a possibilty but I have to find a dealer that works with them not easy. I rather get my scores as close to 600 as possible before applying anywhere again so I can get my rates below 20% which allows me to borrow more money.

New and CPO will get the best rates. Toyota, Mazda, Subaru, Hyundai, Kia and Honda will all get better rates. CPS is one I know will give better rates on those brands.

Not sure why captives didn't take you. I know a few people have reported being approved by Dodge (Santander) and GM Bank with a BK.

I was also denied by Santander (Road Loans), CPS and their other arm New Road Loans. My Auto Loan never sent me a referral. Cars Direct and Auto Credit Express sent my info to aggressive Toyota and Nissan dealers. United also said no, but that was based on how I earn money.

Try Auto Credit Express otherwise I would do what others suggested, AZEO existing cards and wait for your scores to update. March is a good month to buy cars according to James Bragg (Fighting Chance). I am just tired of taking home 60% of what I earn because 40% goes to rental cars.

Re: Financing A Vehicle Post-Bankruptcy

Dj4Money — Mon, 09 Mar 2020 04:59:17 GMT

Oh my Westlake approval came from Carmax.

There was no way I was going to pay their prices. For a low mileage Fiesta ST they want nearly $20,000. I can get a new one for that or a CPO (which are fairly rare) for $15K-$18K.

The high price and basic warranty are a no-go.

Westlake said I didn't have to buy from CarMax. One Ford dealer did work with Westlake but they submitted loan request higher than the $20,000 I was approved for, so I was denied.

I may go a different dfirection. Since Ford will finance the car as new but other lenders will finance the car as used since it's a year old. Some CU's might not do that, I know Logix for example refinanced my year old Hyundai Accent and said it was new.

Re: Financing A Vehicle Post-Bankruptcy

Dj4Money — Mon, 09 Mar 2020 05:19:50 GMT

Oh, I should mention that the majority of lenders use EX and TU. So if the scores you listed are overall, your Auto 8 which is what most lenders pull is much lower than that.

That is the main reason you are having trouble, I am having the same trouble with the scores I listed which are Auto 8 as of this past week.

Re: Financing A Vehicle Post-Bankruptcy

twono — Mon, 09 Mar 2020 14:30:41 GMT

This thread is another reason to show the importance of establishing a relationship with a local CU, prior to fililng if possible, and most definitely post DC.

After a lot of research on local CU's, i joined one several months prior to filing. Switched my direct deposit to them, and last week (5 mos post DC), i was approved for a $2500 VISA. There is no doubt in my mind that if i wanted a new/used vehicle, i could get that too with the CU.

They flat out told me they only look at the 'score' to attach an interest rate to the credit product. Otherwise, they look at your file to determine creditworthiness. BK, no big deal...it's how you've done since then to re-establish your credit.

Re: Financing A Vehicle Post-Bankruptcy

Azuieldrago — Mon, 09 Mar 2020 16:50:07 GMT

I was bored and looked at Carvana. Wow, are they serious? 20%+ aprs and almost 44% down on some vehicles that equate to $15kish down. Oofta. Monthly payments were low though. Still no thanks.

EDIT: That much down, I could go to a dealership get a lower apr and a brand new vehicle.

Re: Financing A Vehicle Post-Bankruptcy

twono — Mon, 09 Mar 2020 17:23:21 GMT

I did the carvana prequal a month ago for craps and giggles. That was 3-4 mos post DC.

Re: Financing A Vehicle Post-Bankruptcy

Dj4Money — Mon, 09 Mar 2020 17:37:50 GMT

Is that rubbing it in? LOL

Re: Financing A Vehicle Post-Bankruptcy

twono — Mon, 09 Mar 2020 17:50:22 GMT

@Dj4Money wrote:
Is that rubbing it in? LOL

Have you tried carvana? My scores at the time of the carvana prequal were 611-630. TU being the lowest.

It's not saying much, but i was also approved with Santander which is Chrysler Capital and Westlake Financial thru the Cargurus prequal link.

Re: Financing A Vehicle Post-Bankruptcy

Anonymous — Tue, 10 Mar 2020 15:00:14 GMT

Man you must got something we don't know about!!! I was 1 month after getting kicked out of Chpt 13 BK went to CarMax and got financed for a car. They ran my credit thru the companies they use. Credit scores were in the 500's! Interest rate was sky high high high! AFter 8 months of on time payments I was able to refi the loan from like 27% down to single digits.....NO LIE!

Re: Financing A Vehicle Post-Bankruptcy

Dj4Money — Tue, 10 Mar 2020 17:24:03 GMT

In several post I have mentioned Carvana being no different than CarMax other than being online.

My pre-approval from them goes like this -

$2600 min down, max car price $10,900, APR 27% = $9,589

Putting more down makes little difference, nevermind that is ALL my available cash.

Re: Financing A Vehicle Post-Bankruptcy

Dj4Money — Tue, 10 Mar 2020 17:31:57 GMT

I was waiting for my scores to update but they make no difference to my Auto 8 scores. I found a post that said only way that would change is with an installement loan of some type like a shared secure loan or credit builder loan.

I already have a school loan, now reporting on-time again but getting another loan and then waiting two months for it show less than 9% and on-time payment history?

Since that is the case I think I'll just say phucket it and let the chips fall where they may. Though I will get what I want... stay tuned.

Re: Financing A Vehicle Post-Bankruptcy

Anonymous — Tue, 10 Mar 2020 17:57:18 GMT

I was approved from Prestige Financial with Zero down for a 2016 Nissan Rougue after my MOC , the interest rate was very higher side but I plan on refinancing it later next year

Re: Financing A Vehicle Post-Bankruptcy

twono — Tue, 10 Mar 2020 18:28:56 GMT

@Dj4Money wrote:
I was waiting for my scores to update but they make no difference to my Auto 8 scores. I found a post that said only way that would change is with an installement loan of some type like a shared secure loan or credit builder loan.

I already have a school loan, now reporting on-time again but getting another loan and then waiting two months for it show less than 9% and on-time payment history?

Since that is the case I think I'll just say phucket it and let the chips fall where they may. Though I will get what I want... stay tuned.

You don't need a self lender loan since you have student loans.

Re: Financing A Vehicle Post-Bankruptcy

Caleb87 — Tue, 10 Mar 2020 21:00:03 GMT

I must ask what mind of cars your buying to be dead in 3 months. if I had 5 grand to spend on a car right now I'd be driving like a king