Can I get a car loan of $35,170 after bankruptcy?

[Anonymous]

Hello everyone,

I'm trying to get some info on this question. I just got out of bankruptcy about 4 months ago(Discharged 4 months ago) and I wanted to know if I could get a $35,170 loan for a new car. I will be making a down payment for $7,000 on the car which will drop it down to $35,170 with tax, title, fees, etc. included. So the final price is $35,170. My current credit score is 523. I have been reading up a lot online and many say that yes I would be able to get the loan but the interest rates will be high. I want to be paying $590 per month for this car and based on $35,170@6.0% of interest is $583 a month for 72 months. I live with my brother and we split the rent of the house and he pays for all the utility bills except for electricity. Everything is under his name. So I basically pay $600 for rent and 200 for electricity. That is all the bills I have plus my phone which is $100 a month. I currently make close to $40,000 a year(Gross).

So to my questions.

Can I get approved for this loan?

Can I get the interest rate to be at 6.0% or is this just too much to ask for?

Can the 6.0% be negotiated if they are not giving it to me?

What would be the average interest rate under the circumstances I have provided?

All I care about is paying no more than $590 per month. I plan to keep this car in the family for years, well after it has been paid off. So with that being said, can I even extend my loan from 72 to 84 months just so that I can fall in that range of $550-$590 per month?

I would appreciate any advise you can give.

Thank you in advance.

[pizzadude]

I believe what you've found online so far is accurate.  If you get approved it won't be at a 6% rate.   Interest rates are somewhat negotiable depending on a number of factors, including down payment, previous auto loan history / amounts borrowed, credit, income etc..    If you just filed BK and also included a car loan in the BK then your odds will be much lower.

[Anonymous]

So what would be an average interest rate I should be looking to see with my circumstances? Can 8% be reasonable?

[pizzadude]

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@Anonymous wrote:

So what would be an average interest rate I should be looking to see with my circumstances? Can 8% be reasonable?

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If you do a search in the Auto forum you can see interest rates reported by people with recent BKs.  Some over 20% some less.

[0REDSOX7]

I was able to secure two auto loans five days post discharge back in February.

Rates were 12.99% and 18.99%. Each loan was for around 20K each.

I think you are being too optimistic with a 6% rate....

Our scores were low 600s (625 maybe??)

[Anonymous]

How much was your down payment? I have been reading up online that some people have been able to get 5.9% with Ford Credit right after the bankruptcy discharge. Could this be true? I have heard that ford financing is very helpful. This is the lender i will be using as the car i will be buying is a Ford. 

[0REDSOX7]

I put 500 down in each one. I was prepared to put more, but the finance manager told me even if I put 3K down, the rates were the same bc if the BK.

[Creditaddict]

who do you currently bank with?

do you have a relationship with any credit union?

have you started getting credit cards again?

what is the car?

[Anonymous]

I currently bank with PNC bank. I dont have any credit cards under my name but I am an authorized user for two credit cards that are under my brother.

I am planning on getting the new 2015 ford mustang GT premium.

I have been reading that ford credit bank is very bk friendly and have been reading some stories of people getting approved with 6% interest. Also buying a 40,000 dollar mustang. They too placed a 7,000 down payment which is what I am planning on doing also. I make 40,000 a year gross and have only a few bills. Plus I have been with my current job for almost 3 years.

Just wondering if with the 7,000 dollar down payment i can make that deal happen for 6%-8% interest. I know for 7,000 dealers will do everything possible to make a deal happen.

[Creditaddict]

1. Ford is easy beacuse they have to be to sell cars (sorry) but I think it's a huge mistake

2. if you are set on it then you need to get credit cards in your name (Secure) you need your score to come up before you try to buy car

2a. I would check capital one pre-approval (if you have to take secure, fine) I would put $1k on it

2b. PNC has a secured card I believe... I would put $1k on that also...

if you have to take that $2k from your down payment then you need to resave the $2k after opening the credit cards to get back to $7k down and see what your score does in a few months... might be surprised how quickly it starts to come up.

also have you pulled all your creidt reports and make sure all the accounts are reporting correctly after the bk?