Looking for a Nissan Murano with a March 2017 BK7

[Anonymous]

Hi everyone, I declared BK7 in March 2017 and was discharged in May 2017. My scores tonight are EQ 629, TU 544, EX 619, and FICO Auto 8 is 641.

I'm looking to purchase a 2017 Nissan Murano in October for a sell price of ~$30k, with a $7k down payment, for a loan of ~$23k. Annual income is $41k and I live at home rent-free with 2 student loans in deferment as I'm still in grad school. I burned cap1 in bankruptcy and not surprisingly they denied my autonav soft pull application. I have read on this forum that DCU requires folks to be 2 years out of BK, so they're out. And I am not eligible for NFCU membership.

Last month, I applied for a Wells Fargo secured card for $300. I waited for the statement to post and paid off the $25 annual fee. I understand to keep my utilization of this card at under 9% each month and then pay in full once the statement posts; to do this, I have netflix going there monthly for $9.99 at 3% utilization. I also have a $450 store card from Express, which I'm not using, from before my BK. There are no auto loans in my credit history and my BK7 was purely credit cards and medical debt. Do you think my scores might be buoyed a bit with a few months of secured card history? Anything else I can do except make time go faster? I'm hoping to purchase in mid-October.

[kberly69]

Do you know your Cap One charge off date? I know their credit cards require a year to pass and I'm guessing that may be the same for the auto loans. I also included them in my BK and was able to qualify two months after discharge. I waited another couple months and got a much better rate (4.24% for 72 months, nothing down). I'd see when that date is and try again at the year mark. Can't hurt since it's a SP.

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[Anonymous]

That car is at about your net yearly income.

You are just out of bk

I would assume no one will approve you at a favorable rate. It may be possible to get approved but not with any terms I would accept.

Maybe just use the 7k you have and buy a car cash.

Trying to be as nice as possible but a expensive SUV on a low income could put you in the same situation you were just in (bk)

[ExplicitElicit]

^x2. I in your position I would not take out a loan this big right after a BK. If you have $7K cash in hand that's a great oppertunity to buy something nice for cash and throw all your money in savings and work on slowly building your credit back up. Once you have it back in the high 600's then sell/trade in your cash car for what you want and then get a more desirable interest rate.

If you're stuck on the idea of getting this car/loan now with $7K down, I'm sure a dealer can find you financing but you're not going to like the IR or monthly payments. Nissan is not a bad car but for what you'd be paying for it, others that have worked hard to get credit in the 600/700's will be paying the same for something a lot nicer.

[Anonymous]

I agree with the two posts above 100%

Buy a $7k car and save $500/month for two years. Revisit that Murano once your rebuild is underway and you then have a paid off car worth $5k and $12k in the bank. Heck, by then you could buy a two year old Murano for cash.

[Anonymous]

Thanks everyone, I'm going to find a more affordable car and pay cash. It makes the most sense at this point. When I finish school and move into a higher income, it might be a better option then.

[Anonymous]

All good advice here, happy to hear you are following it.  One of the biggest considerations post BK or anytime you have subprime credit is the interest cost.  Even if you can swing the payments the APR will be a significant burden that can really weigh you down.  In a year or two of rebuilding carefully you will be able to buy the car you want and not pay thousands of interest for the privilidge.