topic Re: coming to get my car in Bankruptcy

car loan bottom feeders, sick of it!!!

rebuilding88 — Thu, 06 May 2021 13:57:18 GMT

Was looking at getting a car since my discharge. The terms are STUPID!!! 72 months 553.00/month at 20%. Car blue books for 16k they are asking 20k. NO THANKS!!! I've ran into this twice. I decided to roll the dice and keep driving my current car until they come repo it since i didnt reafirm it, then take what ever cash i have saved and pay cash for a POS LOL.

Sorry just wanting to vent.

Re: car loan bottom feeders, sick of it!!!

mich800 — Thu, 06 May 2021 14:24:32 GMT

@rebuilding88 wrote:
Was looking at getting a car since my discharge. The terms are STUPID!!! 72 months 553.00/month at 20%. Car blue books for 16k they are asking 20k. NO THANKS!!! I've ran into this twice. I decided to roll the dice and keep driving my current car until they come repo it since i didnt reafirm it, then take what ever cash i have saved and pay cash for a POS LOL.

Sorry just wanting to vent.

How much is your current payment and do you like the car? Might be worth making the payments and push out getting a new car when you can get better terms. But that also depends on how delinquent you were/are on your existing vehicle whether that would keep the repo hounds in the barn.

Re: car loan bottom feeders, sick of it!!!

rebuilding88 — Thu, 06 May 2021 14:33:51 GMT

My current car is 15k upside down, thats why i didnt reafirm it. I havent made a payment in 4 months.

Re: car loan bottom feeders, sick of it!!!

blindambition — Thu, 06 May 2021 14:53:47 GMT

Have you tried a CU? There's many willing to help in your situation. A neighborhood one is a good place to start.

Re: car loan bottom feeders, sick of it!!!

Anonymous — Thu, 06 May 2021 22:09:22 GMT

@rebuilding88 wrote:
Was looking at getting a car since my discharge. The terms are STUPID!!! 72 months 553.00/month at 20%. Car blue books for 16k they are asking 20k. NO THANKS!!! I've ran into this twice. I decided to roll the dice and keep driving my current car until they come repo it since i didnt reafirm it, then take what ever cash i have saved and pay cash for a POS LOL.

Sorry just wanting to vent.

How long has it been since your discharge? In addition to the neighborhood CU option, as mentioned above, I've seen some recent data points of Capital One Auto Finance after BK with decent terms.

Re: car loan bottom feeders, sick of it!!!

pizza1 — Fri, 07 May 2021 16:26:13 GMT

I can understand your frustration. When I first came out of BK, no-one would give me a car loan/re-finance. I ended up going with Santander with a apr of 22%!!!! because I had to have a car! Lots of folks get so many offers for car loans right out of BK, but I was never that lucky.

So, I paid the outrageous fees for 6 months, then turned around and re-financed with NFCU (my CU) for their lowest rate after 6 months of history post BK. Now, I can get whatever I want when I want.

A few questions....

When was your BK Discharged?
Have you checked to make sure all your 3 credit reports, and all reporting correctly since your DC??

Check out the car pre-qual on Capital One site..

Re: car loan bottom feeders, sick of it!!!

rebuilding88 — Fri, 07 May 2021 16:49:02 GMT

My discharge was a month ago. All 3 are reporting correctly. Part of the problem is my scores are only low 500's.

Re: car loan bottom feeders, sick of it!!!

anniea4001 — Fri, 07 May 2021 19:56:47 GMT

Not to sound rude or anything but I am not sure what terms you were expecting with a recent BK and low 500's scores.

Given those conditions it is very unlikely to find great, or even good terms.

Do you have the posibility of waiting a few months while you work on improving your scores? Maybe make payments on the current vehicle to keep the repo hounds at bay?

I have also read of a lot of people in this forum who filed and did not reaffirm their auto loans say that the repo people took forever to come get their cars. Of course, that would be a gamble but if you can get your cores up some, it would help a ton. You might not get a 3-5% to start with but maybe bettet terms that you can refi down the road. That seems to be what most people around here are doing after BK.

Another thing you can look into would be Santander. I know they are sub prime but they helped me twice when my scores were in the dump and I really had no issues with them.

I am surprised you have not been inundated with car loan offers after BK, I got 1-2 letters in the mail pretty much every darn day after my discharge.

Re: car loan bottom feeders, sick of it!!!

Horseshoez — Fri, 07 May 2021 20:46:31 GMT

@anniea4001 wrote:

I am surprised you have not been inundated with car loan offers after BK, I got 1-2 letters in the mail pretty much every darn day after my discharge.

Agreed, after my discharge last year I was inundated with predatory car loan and credit card applications; high interest offers are the name of the game after a discharge.

@rebuilding88, in your shoes I'd bank evey spare dime you have and if/when your car is repoed, buy an older car "just good enough" to get you around. Another option is, if you can hold out long enough to save up say, 20% of the cost of a new car, most dealership finance departments can open doors for you which are otherwise closed.

Re: car loan bottom feeders, sick of it!!!

pizza1 — Fri, 07 May 2021 23:36:47 GMT

@rebuilding88 wrote:
My discharge was a month ago. All 3 are reporting correctly. Part of the problem is my scores are only low 500's.

@rebuilding88 , Do you have anything posittive reporting on your reports after your DC? Do you have any new credit? A secured card? We need to get those scores up. no reason your scores should be sitting that low 1 month after DC.

Re: car loan bottom feeders, sick of it!!!

rebuilding88 — Sat, 08 May 2021 01:01:09 GMT

Not rude at all. I've never had good credit and always paid stupid subprime. Sorry I was just feeling defeated.

I have a self lender loan and a fresh start loan.

ive been trying to get a secured card but I get nothing but denied. I only burned credit one and capital one for less then 200.00. I have tried the prequels but denied also.

Re: car loan bottom feeders, sick of it!!!

jmw1 — Sat, 08 May 2021 03:56:18 GMT

@rebuilding88 wrote:
Was looking at getting a car since my discharge. The terms are STUPID!!! 72 months 553.00/month at 20%. Car blue books for 16k they are asking 20k. NO THANKS!!! I've ran into this twice. I decided to roll the dice and keep driving my current car until they come repo it since i didnt reafirm it, then take what ever cash i have saved and pay cash for a POS LOL.

Sorry just wanting to vent.

Subprime loans have high costs beyond the interest rate. The used car dealerships have to pay the lender a fee to make the deal on a subprime, so the price gets jacked up further since the dealer is not a charity and passing the lender fee to you. The loans are recourse to the dealership for 1-3 months, so the dealer has to install a hidden GPS device to make it easier to repo. That's more cost right there. The dealership is taking a lot of risk with no down payment despite all of the above fees and interest if I did the math right on your loan.

It's way cheaper to just to save for a $3k-$5k junker with cash regardless of credit. Keep driving the current vehicle and save up $500/month until the repoman grabs it. He might not grab it for months or even longer. Keep in mind if your credit was 740+, you still get hosed with a rapidly depreciating new car $30k car +tax on 4% interest with a very similar payment for 6 years. You should seriously consider getting off the endless auto loan conveyor belt where banks are taking $500+ a month for 6 years and then you do it over and over. Auto loans even at 0% are a good way to barely survive paycheck to paycheck forever.

Re: car loan bottom feeders, sick of it!!!

House1204 — Sat, 08 May 2021 19:42:30 GMT

@rebuilding88 wrote:
Not rude at all. I've never had good credit and always paid stupid subprime. Sorry I was just feeling defeated.

I have a self lender loan and a fresh start loan.

ive been trying to get a secured card but I get nothing but denied. I only burned credit one and capital one for less then 200.00. I have tried the prequels but denied also.

Have you tried Open Sky for a secured card? They are very good for rebuilding.

Re: car loan bottom feeders, sick of it!!!

OmarR — Wed, 12 May 2021 17:45:43 GMT

@jmw1 wrote:
It's way cheaper to just to save for a $3k-$5k junker with cash regardless of credit. Keep driving the current vehicle and save up $500/month until the repoman grabs it. He might not grab it for months or even longer. Keep in mind if your credit was 740+, you still get hosed with a rapidly depreciating new car $30k car +tax on 4% interest with a very similar payment for 6 years. You should seriously consider getting off the endless auto loan conveyor belt where banks are taking $500+ a month for 6 years and then you do it over and over. Auto loans even at 0% are a good way to barely survive paycheck to paycheck forever.

100% spot on! It took me 25 years to break that cycle. Even a cheap reliable car in that price range isn't necesarily a "junker".

Re: car loan bottom feeders, sick of it!!!

Horseshoez — Wed, 12 May 2021 19:40:49 GMT

@OmarR wrote:
@jmw1 wrote:
It's way cheaper to just to save for a $3k-$5k junker with cash regardless of credit. Keep driving the current vehicle and save up $500/month until the repoman grabs it. He might not grab it for months or even longer. Keep in mind if your credit was 740+, you still get hosed with a rapidly depreciating new car $30k car +tax on 4% interest with a very similar payment for 6 years. You should seriously consider getting off the endless auto loan conveyor belt where banks are taking $500+ a month for 6 years and then you do it over and over. Auto loans even at 0% are a good way to barely survive paycheck to paycheck forever.

100% spot on! It took me 25 years to break that cycle. Even a cheap reliable car in that price range isn't necesarily a "junker".

So, I'm not necessarily in agreement with this line of thinking. Why? I drive an older car which I bought used and my wife drives a car she purchased new the year prior. We've had her car for five years and mine for four; hers was roughly $25,000 new and has since needed about $800 in unscheduled maintenance giving us a total of $25,800. If we were to sell her car at, let's call it, "Pre-Pandemic" prices, we would have been able to get roughly $12,000 for it, which in turn gives an overall cost of ownership of $13,800.

My car, with a year less time with us and fewer miles on the clock, started with an acquisition cost of $10,000, followed a year later by nearly $6,000 in unscheduled and preventative maintenance, followed by another $2,000 of the same a year later. I just got the car back from its annual inspection yesterday and was alerted to the fact much of the exhaust system, cats included, is "fragile"; that'll probably be another $1,000 on the balance sheet. Here again, had we sold it at "Pre-Pandemic" prices, we would have gotten maybe $3,000, maybe even $4,000. Taking the higher of those two numbers would yield a total cost of ownership of $14,000.

I didn't buy my car because it was old and less expensive, I bought it because that is the car I want and am more than happy to pay what it costs to keep it in tip-top condition.

Re: car loan bottom feeders, sick of it!!!

OmarR — Thu, 13 May 2021 01:09:10 GMT

@Horseshoez wrote:
@OmarR wrote:
@jmw1 wrote:
It's way cheaper to just to save for a $3k-$5k junker with cash regardless of credit. Keep driving the current vehicle and save up $500/month until the repoman grabs it. He might not grab it for months or even longer. Keep in mind if your credit was 740+, you still get hosed with a rapidly depreciating new car $30k car +tax on 4% interest with a very similar payment for 6 years. You should seriously consider getting off the endless auto loan conveyor belt where banks are taking $500+ a month for 6 years and then you do it over and over. Auto loans even at 0% are a good way to barely survive paycheck to paycheck forever.

100% spot on! It took me 25 years to break that cycle. Even a cheap reliable car in that price range isn't necesarily a "junker".
So, I'm not necessarily in agreement with this line of thinking. Why? I drive an older car which I bought used and my wife drives a car she purchased new the year prior. We've had her car for five years and mine for four; hers was roughly $25,000 new and has since needed about $800 in unscheduled maintenance giving us a total of $25,800. If we were to sell her car at, let's call it, "Pre-Pandemic" prices, we would have been able to get roughly $12,000 for it, which in turn gives an overall cost of ownership of $13,800.

My car, with a year less time with us and fewer miles on the clock, started with an acquisition cost of $10,000, followed a year later by nearly $6,000 in unscheduled and preventative maintenance, followed by another $2,000 of the same a year later. I just got the car back from its annual inspection yesterday and was alerted to the fact much of the exhaust system, cats included, is "fragile"; that'll probably be another $1,000 on the balance sheet. Here again, had we sold it at "Pre-Pandemic" prices, we would have gotten maybe $3,000, maybe even $4,000. Taking the higher of those two numbers would yield a total cost of ownership of $14,000.

I didn't buy my car because it was old and less expensive, I bought it because that is the car I want and am more than happy to pay what it costs to keep it in tip-top condition.

The type of car you choose makes a difference.

While they are not sexy, something tells me you didn't choose/want a Honda Civic, Honda Accord, or Nissan Sentra type car.

But I could be wrong.

I am $4k + regular maintenance, going on 9 years. 2001 Chevy Blazer.

Re: car loan bottom feeders, sick of it!!!

Horseshoez — Thu, 13 May 2021 01:13:21 GMT

@OmarR wrote:

The type of car you choose makes a difference.

While they are not sexy, something tells me you didn't choose/want a Honda Civic, Honda Accord, or Nissan Sentra type car.

But I could be wrong.

I am $4k + regular maintenance, going on 9 years. 2001 Chevy Blazer.

Funny you should mention a Honda Accord, the 2006 I mentioned above, is a Honda Accord clone called the Acura TL. While the car is still rock solid at 15 years of age, it isn't exactly an inexpensive car to maintain, in spite of the fact most of the mechanical bits are identical to the same year Honda Accord (which was built on the same assembly line in Ohio).

coming to get my car

rebuilding88 — Mon, 17 May 2021 12:48:21 GMT

Well that didnt take long, LOL I recieved a call Sunday asking when and where they can come pick up he car. I was going to play hide and seek but decided not to. I didn't reafirm the car because it was so upside down. Oh well, on to bigger things.

Re: coming to get my car

Horseshoez — Tue, 18 May 2021 15:22:35 GMT

@rebuilding88 wrote:
Well that didnt take long, LOL I recieved a call Sunday asking when and where they can come pick up he car. I was going to play hide and seek but decided not to. I didn't reafirm the car because it was so upside down. Oh well, on to bigger things.

Wow; so what is Plan B regarding a vehicle?

Re: coming to get my car

rebuilding88 — Tue, 18 May 2021 15:26:10 GMT

I went out and bought a 5k car with cash.