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Auto loan 1 year after Chapter 7

taracer
New Member

Auto loan 1 year after Chapter 7

I'm a year out of my Chapter 7 discharge, and my 12 year old car is just about dead. I surrendered a auto in the bankruptcy, but what do you think my chances are at getting a car loan now? Just figured I'd ask here before maybe wasting my time.

 

Credit Score: EX 614, EQ 626, TU 642

AAoA: 5 years

# of positive trade lines: 3

# of negative trade lines: 7, all show included in bankruptcy

Income:60000

Lenght of Employment: 9 years

Previous Loan Experience:

Debt-to-Income (DTI): 19

Year of Car: 2013

Miles: 4500

Purchase/Refinance: purchase

Requested loan term (XX Months): 60

Down payment amount: 7000

Co-borrower/Co-Signer: No

Other:  Price of car is 27000, but I could probally find a similar one for a few thousand less.

Message 1 of 9
8 REPLIES 8
Remember0
Valued Contributor

Re: Auto loan 1 year after Chapter 7

I predict approval. APR might be a bit high due to BK. I'm guessing 7%-14% with those low-600 FICOs. The auto loan IIB'ed might push up apr to the 12-18% range, depending on if lender uses auto enhanced FICO. A little downpayment may help reduce the APR a bit, but it won't help THAT much.

 

But overall, you'll be approved.

Message 2 of 9
taracer
New Member

Re: Auto loan 1 year after Chapter 7

Thanks for that reply, I guess I'll have to set my sights a bit lower.

Message 3 of 9
0REDSOX7
Valued Contributor

Re: Auto loan 1 year after Chapter 7

I just did what you did - except I was five days post BK discharge for Ch. 7 and scores were in the 580s.  I put 500 down and got 12.99 percent - not too bad, but I will be re-financing in a year.

BK Discharge 2/11/14

Currently in the garden.
Message 4 of 9
Remember0
Valued Contributor

Re: Auto loan 1 year after Chapter 7


@taracer wrote:

Thanks for that reply, I guess I'll have to set my sights a bit lower.


I'd apply, see what you get, and see if it's affordable! It's very hard to predict rates, you'll be almost certainly approved though

Message 5 of 9
taracer
New Member

Re: Auto loan 1 year after Chapter 7

 Approved 5 days post bankruptcy, that's great. Did you surrender a car in the bankruptcy?

Message 6 of 9
taracer
New Member

Re: Auto loan 1 year after Chapter 7

I'll give it a try,  I was thinking I'd be rejected but your comments make me think I may have a chance.

Message 7 of 9
dh33
Member

Re: Auto loan 1 year after Chapter 7

I was dicharged feb 2014, i had to got to a coupler of dealer. Your going to be better off get a new 2014 car, If you want a low interest. I recieve 5.9 interest, with no money down, on a 2014 malibu lt, through dealer financing, they used Ally on March 2014. The first offer the gave me was 9.9% interest through gm financing, I walked away and they called me back withe the 5.9% interest rate throught ally. Used car dealers are going to try to get you 20 % insterest, so defintely shop around. You should be able to get a low interest, since you have been dischared from bk , this means you are no longer a risk. Hope this helps. Yes, i surrender my car, and my score was 544

Message 8 of 9
Chris123nTx
Established Contributor

Re: Auto loan 1 year after Chapter 7

Not commenting personal here but being just out of a chapter 7 does NOT mean you are no longer a risk. It just means you can't wipe out the debt through the federal bankruptcy laws.

Millions of people have loans they simply stop paying on. They default, have a car repoed then just blow off the collection agencies when they try to get the money. The biggest indicator of of being a good future credit risk is being a good past credit risk. Again not being personal to anyone, but I thought that might be clarified .. Just one old tired guys opinion
Message 9 of 9
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