topic Re: Post Bankruptcy Auto Loan success? in Bankruptcy

Post Bankruptcy Auto Loan success?

Caliboy97 — Mon, 04 Jan 2021 20:54:01 GMT

Hello Team,

I got discharged in September all my scores are in the 640/650 range, I am looking at financing a Kia Telluride for about 40k then refinancing in a year again. What financing companies had you guys been lucky to get financing from?

Income: Base pay is around 75K a year plus OT

Payment isn't the biggest issue but I don't want to pay over 1K a month

Re: Post Bankruptcy Auto Loan success?

DebtStinks — Mon, 04 Jan 2021 21:39:05 GMT

Did you carry any loans (car, house, etc) through the BK?

I financed a vehicle less than a year from CH7 discharge and financed it with HMF/KMF on a new Sonata at their best rate on Tier 1.

DP's - I did have my student loans I carried through the BK with flawless 6-year history as well as a reaffirmed auto loan with a flawless 5+ year history at the time of approval with scores in the 690's.

Best of luck!

Re: Post Bankruptcy Auto Loan success?

Caliboy97 — Mon, 04 Jan 2021 22:21:53 GMT

The only auto loan I have is one I paid off back in 2017. My newest one was with Honda but once I filed they take it off your credit and got told even if I reaffirmed they wouldn't put it back on so I didn't.

I also have student loans on my record but they have been in deferment was suppose to start making payments in April but due to cares act postponed it till February.

Re: Post Bankruptcy Auto Loan success?

Mjhall85 — Mon, 04 Jan 2021 23:11:27 GMT

I append with capital one after bankruptcy and got decent rates. They were between about 5-9% on newer cars. Ultimately I went with the dealer financing from Chrysler and got 4% on a new Dodge Ram warlock. I pay just over 500 a month on a 6 year note and this was about a month out of bk and my scores were lower than they currently sit. You should be able to get a decent rate with your scores.

Re: Post Bankruptcy Auto Loan success?

Caliboy97 — Mon, 04 Jan 2021 23:48:39 GMT

Thank you for the feedback I have seen horror stories of over 20% interest rates after bankruptcy so I didn't want to get that far up so sub 10% would be perfect. My last car was 5% and perfect payment history but due to the BK it doesn't show anymore so pointless to continue payments on it with it running up on mileage.

Re: Post Bankruptcy Auto Loan success?

Mjhall85 — Tue, 05 Jan 2021 00:09:24 GMT

I was just like you I saw horror stories of like 18-23% and I figured that would just be part of life after bankruptcy and could refinance down the road but it effects everyones credit differently.

I would honestly try to setup your own financing unless Kia has some good incentives for financing with them. Could always do a soft pull with auto navigator about when you're ready to get an idea.

You belond to any of the larger credit unions or a local one ? They are usually great and rates are solid. Best of luck in buying! When you do get it post it up so we can see it.

Re: Post Bankruptcy Auto Loan success?

Caliboy97 — Tue, 05 Jan 2021 00:15:46 GMT

Kia has some low rates but I'm not sure how they are with people with bankruptcies.

I have tried to prequalify with different companies but they always hit me do a hard pull to see rate even Capital one won't do a soft pull.

I have a few CUs. Navy Fed I have seen will refinance a car but won't finance one straight out of bankruptcy. SchoolsFirst CU declíne me a auto loan even though they granted me a unsecure line of credit. I also have Altura CU but not sure how they will work with me since I never really used them.

Re: Post Bankruptcy Auto Loan success?

DebtStinks — Tue, 05 Jan 2021 02:45:23 GMT

Try this link for Capital One:

https://www.capitalone.com/cars/prequalify/

Kia (KMF) and Hyundai (HMF) are the same thing...I got my loan (as previously referenced) less than a year out of my BK.

The sweet spot is having a score of 640+ on the bureau they pull...the bureau is dependent upon your regional buying center.

Best of luck!

P.S. Not only did I get a loan with HMF (same as Kia) but I worked in Finance @ a Hyundai dealer for 7 years.

Re: Post Bankruptcy Auto Loan success?

Caliboy97 — Tue, 05 Jan 2021 05:09:43 GMT

Yeah I have tried that link multiple times and I don't know if they blocked me but I never get a prequal from Cap1 Auto even with having a card with them know.

That's good news to hear about their financing. I pulled the trigger on NavyFed they have been good to me and didn't burn them so I'll see what happens there then pull trigger with Kia financial.

Re: Post Bankruptcy Auto Loan success?

sccredit — Tue, 05 Jan 2021 16:57:25 GMT

If I recall correctly Altura likes to see 2 years after BK with a solid rebuild, minimum score of 640. Give them a call though, their reps and underwriting have always been pretty informed in the past.

Re: Post Bankruptcy Auto Loan success?

pip3man — Fri, 08 Jan 2021 00:52:44 GMT

I just got financed through Ally. I had a choice of financing 7.18% 45k @Anonymous months vs 14.35% for $37k @ 75months. I took the second option.