State Farm Auto and US Bank Auto

[junior88]

Are either of these BK friendly? I have a chapter 7 from 5 years ago, nothing negative since.  I did the prequalify with US Bank, they said denied due to BK but they said to chat with my local branch and they may be able to help me.

I'm waiting to hear back on State Farm tomorrow, just wondering if anyone knew?  The auto I'm looking at I will have about 20% equity in it to start with. I don't really need a new car but it is a good deal and a sweet car! Pontiac G8.

Thanks!

[jmontes77029]

Maybe you should wait to apply for financing after the BK falls off or gets older. You did say do you did not need the vehicle, but wanted it because of the sweetness of the car and deal. Don't get stuck paying a ridiculously high APR. Reward yourself with a great rate when BK falls off. As for if the banks are BK friendly, I have no clue. But it seems your answer for US Auto was already answered by the denial.Good luck!

[junior88]

I can go to my hometown bank and get a auto loan no issue with my Bk still showing and for a great rate. I'm trying to get away from the smaller bank. Thousands of people are 5 years post BK and getting good auto loan rates so I don't feel I have to wait for it to fall off.

Anyway, I'm more interested in knowing about State Farm being BK friendly.

[Anonymous]

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@junior88 wrote:

I can go to my hometown bank and get a auto loan no issue with my Bk still showing and for a great rate. I'm trying to get away from the smaller bank. Thousands of people are 5 years post BK and getting good auto loan rates so I don't feel I have to wait for it to fall off.

Anyway, I'm more interested in knowing about State Farm being BK friendly.

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For a set of forums that are linked to myFico- the only place the public can directly purchase a FICO score, there is maybe 500-700 members a week who participate and at any one time between 50-100 people logged in. There is also a significant number of unlogged in "lurkers" with or without a board account who have no desire to participate in any basis.

Of the board participants, they are split between the askers and the people who try to help and share knowledge/participate.  No one, even the moderators is paid, and myFICO itself stays out of Forum participation so they can remain impartial and more importantly not liable for any information shared, and the consequences of someone acting on it. myFico encourages these Forums to exist because people participate and buy the products offered for sale here.  We are not paid, we do not have a master database to work off of. The information shared is a mixture of personal experiences, knowledge, research, and anectdotally gleaned from other members or personal stories.

Why have I said all that?

Simple coming in here with a very specific set of circumstances and desiring a specific x company answer and then expecting it and only it just probability wise does not make sense. You have put out a set of circumstances that you are then requiring someone else to have gone through, then that person also participates in this forum and be a person who actually reads THIS SPECIFIC FORUM and to be a person who wants to help in this forum. 

The advice you are going to get is going to be catch as catch can.

Also, anyone comparing their credit circumstances to someone else, especially POST BK is VERY VERY HARD TO DO. I have seen people post BK get 0% loans from Ford Due to them having a perfect history with Ford, did not BK Ford, and put 30% of transaction down. Does that mean everyone who is at 2 years on a BK should be able to get 0%?

Re-establishing is along hard road for everyone.

Now all that out of the way...

1- Have you re-established since your prior BK?

2- Do you have current credit lines, cards, term loans?

3- Do you have a current car loan?

4-Do you have a current home loan?

If the answer to any of thos eis "No" you are at a disadvantage for trying to secure an auto loan, especially from a big company like State Farm. (assuming they are BK friendly)

Just because a company is "BK Friendly" does not mean they are not going to penalise you, your rate or loan terms in giving you a loan.

You may be able to get a loan with SFA, but the rate may not be beneficial to you.

Call State Farm and ask their customer service prior to applying. Just to see if they will accept you with a BK or what re-establishing is to them.

Then if you can get a loan through them, apply between your local bank (that as long as they report to the credit bureau you are fine) for a pre approval, and then see what rate terms SFA gives you.

Invariably big institutions are not as forgiving and as lenient as small local ones. 

[junior88]

Just an update --  I have been approved for a auto loan with US Bank. They did tell me that 3 years is the magic number for bankruptcy. What was holding me back was that I was added as a Joint user on a hsbc account of my mom's and that had went 30 days past due once. I paid that off in full and now have been approved. The rates are not driven by your score either, its simple either you qualify or you don't. Rates are the same for everyone. So if you are post bk 3 years or more and have no negatives on your cbr's since the bk, you should be in with US Bank. I'm getting 3.9%.

Thanks

[Anonymous]

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@junior88 wrote:

Just an update --  I have been approved for a auto loan with US Bank. They did tell me that 3 years is the magic number for bankruptcy. What was holding me back was that I was added as a Joint user on a hsbc account of my mom's and that had went 30 days past due once. I paid that off in full and now have been approved. The rates are not driven by your score either, its simple either you qualify or you don't. Rates are the same for everyone. So if you are post bk 3 years or more and have no negatives on your cbr's since the bk, you should be in with US Bank. I'm getting 3.9%.

Thanks

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I am glad you got your approval, I do dispute the highlighted text as being incomplete/incorrect.  US BANK is not giving everyone 2.9% regardless of Score.

[junior88]

Dispute it if you want, that is what my banker and the underwriter told me! The rates are not based on your score, the rates are based on the term length of the loan.

[Chris123nTx]

The sweet deal on a Pontiac is not really so sweet when you factor in that Pontiac is out of business. Makes it very likely to have a big hit on the resale down the line. I know they can still be serviced and such but the fact is that dealers were pushing those cars out the door at firesale prices just before the company was taken out of existance. Just my two cents.

[Anonymous]

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@Chris123nTx wrote:
The sweet deal on a Pontiac is not really so sweet when you factor in that Pontiac is out of business. Makes it very likely to have a big hit on the resale down the line. I know they can still be serviced and such but the fact is that dealers were pushing those cars out the door at firesale prices just before the company was taken out of existance. Just my two cents.

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Actually it will have very little resale or trade in value.

Banks do not like to finance used deleted lines.

Which means that a dealership will not give a good price on the car.

So yes you bought it you need to keep it.

When Oldsmobile went under we had many people upset that their  trade in value was not what they thought.

[junior88]

I just have to laugh at some of you people out here.  The G8 I'm getting is at a great price, $15k to boot with a NADA of $25950. Also,  Chevy is bringing the G8 back within the next 2 years under their banner. The bank has no issue loaning me the money because they do not make them any longer, I've never heard of such a thing. Just funny to read some of these responses.

For the people who tried to assist with some helpful advice, thanks!