Obtaining 2nd auto loan....Help

[efrey75]

I was discharged from a chapter 7 this month, i kept my current auto loan out of the bankruptcy and reaffirmed it. I have had 3 auto loans in the last 6 years and have never missed a payment. I filed bankruptcy largely due to medical bills. I need to get another vehicle as one car isnt cutting it anymore for my wife an I. My wife is a stay at home mother for our disabled son, so she has no income and was also with me in the bankruptcy. I make $65k a year and my dti is about 10%, the only reaccuring bill i have is my current car loan which i owe about $19k on and myfico is 622, Is there anyway possible i can get a second car loan???? Any info is appreciated....thank you

[Remember0]

Have you tried and been denied previously for the second loan? I need a little more info:

• Your monthly rent/mortgage
• Do you have any credit cards? If so, what is the aggregate minimum monthly payment on all of them even if you pay them in full?
• What is your current monthly auto loan payment?
• Are you willing to have your wife cosign? What does your wife's FICO look like? Does she have currently any good history reporting after the BK (credit cards, etc...)? And if she has cards, whats the aggregate min monthly payment?
• Finally, any down payment available?

Getting you another car shouldn't be terribly hard, but it won't be simple. Your wife may have to cosign. Also we need to get you guys to start building good history either way so you'll be able to refi the second car eventually (you won't like the APR with that BK on your reports). I get the sneaky feeling the only post BK good credit you have is that reaffirmed auto loan.

[efrey75]

I have not applied yet, i dont want to start applying if its not possible as i dont want the inquiries....

To answer your quetions....

-At the present time i have no rent/mortgage, my wife had the mortgage in her name only(she bought the house before we were together), and that was filed in the BK. She had a second mortgage and the house needs so much work, so we decided to walk away from it, but it has not yet been foreclosed on.

-Ive never had credit cards, and my wife also has no credit cards....they were all discharged

-My current monthly auto loan is $460

-Im not opposed to having my wife on the 2nd auto loan, however she has no post BK credit reporting, and zero income.

 -And yes I would like to put no more than $2000 down

Yes the only post BK credit reporting for myself is my current loan....Thank you for any advice you may have in advance. 

[Remember0]

I'm going to impute a $700 rent just like a bank would (they usually do something between 300 and 700) to calculate DTI and assume a second auto payment of $450.

(450+460+700)/(65000/12)=29.7% DTI

So that's actually great! DTI is in line and seems your FICO has managed to remain > 600 through the whole episode.

I'm sure you'll be able to be financed especially with that 2k. I'd try to apply to maybe a bank like Cap One first to see if you can secure approval before getting to a dealer. A dealer will definitely get you financed, but you may not like the APR. And at a dealer, wife might have to co-sign, though they'll probably accept just your story.

Bigger picture: A year down the road, you guys are definitely going to want to refi this second car loan due to the APR. Which means you need to build good credit again...esp. if you ever want to buy a home again. Look into getting some credit cards (after the new auto loan imo). It might need to be secured, but it'll be worth it even if the limit is only $250. Heck, save 500 of that dp for the secured cards. Make sure your wife gets one (ideally two) as well.

[efrey75]

Thank you,  that's some great advice. I will post back for an update soon