pay it off or work to get new loan

[mikey78]

okay in credit card forum I mentioned that i filed for BK in Aug 18, and was discharged in Sept 18,

since then i got 2 credit cards 1 with 500 CL and just received my 2nd with 2000 limit.

i am contemplating in paying off my camry which my fiancial loan ends Oct 2020, i have $8,900 left to pay but thru some error on someone's part my attorney or Chase auto my car wasn't reaffirmed, however i do need a car to get to work 

but lately i am tempted to upgrading my car to a Lexus ES 350 F Sport, 

my car loan was 9100 and lexus appraised the car around 10k so the car was profitable in my favor 

long story short the car dealer basically said i need co signer or put more money down or opt for a cheaper ES and he'll willing to give me navigation on the car which i dont want, i asked him basically assuming i get the car loan what's the apr , he replied "that first he needs to find a bank willing to give you a loan" but that i need to show him something like putting more down payment which i said i'm not taking a car that wasn't my first choice this time as was the case with the camry i thought i'd be getting the new 15 camry instead they threw me the 2014.5 camry which i took at that time cuz i wanted a new ride.

now first of all i'm contemplating should i continue to pay as i go with the camry and give up my inspiration for wanting a luxury ride which my payments are not being reported as it's been included in the BK.

or should i put down 20% or more for a 50k car to get a new car and restart another 60 month 72 month loan

my 2nd option which makes most sense to me would be just to hell with it and my car off by the end of the term by then my credit should be in better standing, and it'll be 2 years since the bk charge off. but the temptation of wanting the car now vs then is on my mind always

i dont even know what kind of APR i should be expecting to pay with my credit score being the way it is now i'm assuming if i buy the car this October my credit score might increase slighty but i'll have 10 to 15k down pay but i just dont know what APR i'm expecting to pay now

vs if i wait until next year October i'll put in 25k down pay with better loan term

pay now suffer now or suffer now and rewarded later drama lol

[MitchDeerfield]

Don't most people lease a Lexus?  In fact sometimes Lexus leases for less than a Camry.

The ES is just a loaded Camry.  Maybe get your finances straightened out and wait a few months.  There is nothing wrong with Camry unless you got the most basic model.

[Remember0]

I'm not a BK expert and you should ask your attorney, but assuming we are talking about a Ch 7 here, can't you just continue to pay down the car on time and not have an issue? I doubt the lender would want to repo a car (especially after the debt has been discharged) when payments are coming in on time.

Or is this a matter of you just want a new car? If so I definitely vote waiting, building more of a DP, and building back your credit. My guess is the APR right now is going to just be brutal and not sure why you'd want to do that to yourself if you have a perfectly running, pretty reliable vehicle.

[mikey78]

Yeah.. I filed Ch 7 and was discharged. and yes i'm making on time payments as they would probably would be happier that i pay it off with making my payments.. i guess it's just me wanting a new car. the common sense tells me to just pay it off use the duration to build up my credit and have DP for a new car if i still have the urge for new car.

the Attorney said they mailed in the affirmation paper work to the bank but the bank is telling me otherwise but whatever it is what it is

Thanks for the advice i appreciate it

[Anonymous]

I could be wrong here, but sometime's lender's will stop reporting the tradeline after the BK is discharged in fear of inaccurately reporting something which could cause them to violate law's due to the BK.

I wouldn't suggest buying a new lexus at this point, you have reliable transportation and there is no "need" to go buy such an expensive vehicle so soon after your BK.

[mikey78]

at this point i think i'm more inclined to pay off the car loan than buying a lexus... i need to work on my credit anyways lol

thank you

[zerofire]

I am also agreeing that you should hold off on the new car. Your existing car is not that old and is rather reliable as it is. The car you want is pretty much the same model but with difference name and a few luxury thrills. My recommendation is to keep paying off your loan, let your credit recover, and then when you are truly ready for a new car you get that ES or whatever you wish that you can afford but it will have all the new improvements that the manufacturer thought up in the mean time loaded on-board. Car manufacturers think up new stuff every year and cars only get better. Remember your car has a finite life of 10-20 years depending on how you maintain it or 3-5 years for leases/purchase swaps.

[DaveInAZ]

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@Anonymous wrote:

I could be wrong here, but sometime's lender's will stop reporting the tradeline after the BK is discharged in fear of inaccurately reporting something which could cause them to violate law's due to the BK.

I wouldn't suggest buying a new lexus at this point, you have reliable transportation and there is no "need" to go buy such an expensive vehicle so soon after your BK.

---

Having gone through a BK7 back in 2010 no, the lender stops reporting if not reaffirmed because the debt is discharged. Credit reports are only for reporting debt and there is no longer any debt, just a contract that allows them to reposess if payments are not made.

And Mikey, rebuilding credit after a BK is marathon. not a sprint. Take you time and keep making the payments. If you got a new car loan now the interest rate would be very high, in a few years you'll be able to get a car loan at a much better rate.

[HappyJoey425]

Seeing as I too want that exact same car...the ES-350 with the bells and whistles, I understand.

I'm still paying on my Corolla, and look forward to the same upgrade. I won't make any other statements, the folks here covered everything!

Good luck!!