Auto Loan before or After D/C

[Anonymous]

So I need to purchase a new vehicle. I surrendered mine during my bankruptcy because of how upside down it was. I'm looking for a small, cheap, used car. I am wondering if I should apply before my discharge or after. The loan officer at the dealer is saying the interest rates will go up after my discharged and I'm just wondering if that's true or not. I feel like I should wait until after it's been discharged. 

[Anonymous]

Maybe a more seasoned member can speak to why/if an interest rate would increase after d/c, but from my own experience and speaking with others I don't believe that to be the case.  I think the most important determining factor is making sure your CR's reflect properly with everything showing IIB, closed and zero balances.  I have heard that there could be higher interest reates associated with buying used vs new after d/c, but was uncler as to why exactly.

[Anonymous]

If you can secure your own financing before going to a dealer that will be in your best interest. Speak with a local CU, NFCU if you aren't already a member follow how to join as a civilian as they are a good post BK resource. You can also try Cap One auto pre qual as well. If you just walk into the dealership and say "gimme a loan" they will pick the HIGHEST APR that gives them the best kickback. They don't have your interest in mind, only theirs and the fact that they want to make a sale. Generally the dealer will put your application in CUDL and see who takes your app, and then increase the rate they get by a few poiints.

New cars are always going to be the lowest of the low apr, however some places will constitute a "new" car as the one or two years prior if it falls under certain mialage. It realy depends on the lender. However, just because a new car has low APR doesn't mean you should stretch your budget or get something that's more than what you wanted to spend.

[Anonymous]

Well, currently I'm not a member with a local CU. Anyone have any suggestions for AZ? I'm with NFCU however I was forced to burn them in my BK due to my ex-wife's credit that I was on with her that was charged off. ;( I believe I have a PenFed account still but I don't know if they're BK friendly. I also burned Capital One via my car I surrendered. I don't know if I have any options besides the dealer. I definitely want a used car as I don't want to spend a lot on a vehicle.

[Anonymous]

You need to check with your attorney about acquiring new debt before your discharge. S/he will advise you if you need trustee approval first.

[Anonymous]

You could try Lending Tree's auto https://www.lendingtree.com/auto-loans-index

I used to work at PenFed up till 9-15. At the time they weren't Bk friendly, however they did start risk based lending earlier this year. I have read elsewhere on the forums that others have had some sucess with auto loans through them, however they are more conserative I think then others. It wouldn't hurt to try. If you have a CarMax near you, I might suggest starting there, then other dealers. However, they might want 20% dp. When I called around for myself to a few dealerships they really didn't want to speak to me when I asked if they had financing for people who have filed BK unless I told them I had 20% DP. CarMax was the most friendliest and wanting to help, the finance manager I spoke with said he had gone through banko himself a few years back so he understands the position I'm in. I would suggest that if you are going to go car shopping to try and limit it to one day, since the credit pulls won't show up for other lenders if done on the same day. Of course you'll end up with a butt load of inquiries, so you'll have to garden for at least 6 months before thinking about anything else if you can get a loan through someone.

[Scupra]

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@Anonymous wrote:
Well, currently I'm not a member with a local CU. Anyone have any suggestions for AZ? I'm with NFCU however I was forced to burn them in my BK due to my ex-wife's credit that I was on with her that was charged off. ;( I believe I have a PenFed account still but I don't know if they're BK friendly. I also burned Capital One via my car I surrendered. I don't know if I have any options besides the dealer. I definitely want a used car as I don't want to spend a lot on a vehicle.

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Howdy neighbor! I am in Gilbert I have yet to find a local credit union that is BK friendly other than NFCU.

[Anonymous]

Definitely neighbors, I'm in Mesa . Well, that's a bummer. I guess I'll have to take a look at my options and figure something out. Thanks for all the info!

[TXinandout]

After discharge, try Wells Fargo Financial, they are bk friendly.

[SSH0126]

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@TXinandout wrote:
After discharge, try Wells Fargo Financial, they are bk friendly.

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TXinandout is this who you had luck with? couldn't remember.