I'll share with you my wife's experience getting a new car loan about $15 cheaper than our previous note through Well Fargo Dealer Service. Nov 2019 - Our old GMC Terrain's transmission gave out when I'm about $4K left to pay needless to say cost to fix is more than what the car is worth. We desperately needed a car as this was right before COVID broke out. Called my attorney she qualified our necessity confirming it was a valid ask considering the circumstances HIGHLY ADVISED me to ensure the car does not go over what I paid in my previous note (this was the stipulation to avoid problems with the Trustee and plan). I am no in way advising you to risk not disclosing this to your trustee as it would suck to get dismissed right at the tailend of your long exhausting BK 13 journey.
Here's our summary:
- Navy Federal Credit Union (NFCU) approved my wife $25K
- Attorney just needed ballpark figure with lender name and had Trustee approval within 3 days.
- Even though we required permission to incur debt we also had to forfeit the other car and like i said it was $15 cheaper.
- To answer your question - NFCU approved my wife and as far as I remember they did not require trustee approval or documents of any kind. We did have a relationhip with NFCU about less than a year making small bi-weekly $50 deposits in both Chk/Sav accounts.
- My wife's scores were low 600 from Real FICO Auto scores at the time of purchase. Oh and we had to put down $1500.
Congrats with your journey and best wishes fellow Chapter 13'er
@jmw1 wrote:
@Anonymous wrote:None of what you said is true at all. People buy new cars all the time within their plans. This is not abnormal. Sure if I was trying to get a tesla or something of the like, then yeah they would probably say no. But the way it works for our district is that you just ask for a dollar amount based on what you can afford. You dont even have to have a car picked out yet. Thats what happened as well with our house. We were given a total amount and payment we couldn't go over.
What kind of NEW car can be purchased for $15k all-in or $500/month all-in? That's our trustee limit. $600/month is not going to fly here and they will ask how you got your down payment money if you happen to have any.
Just to be clear, let's assume this is not a 100% payback plan. In a 100% payback, you can buy whatever you want as long as the creditors get 100%.
For "new" cars:
- Hyundai Accent
- KIA Rio
- Chevy Spark
All three have a higher base price, but they are not highly sought after so you should be able to get any of them for close to $15,000.
