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Bankruptcy Friendly Auto Loans Guide

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Regular Contributor

Re: Bankruptcy Friendly Auto Loans Guide

PenFed is not BK friendly, at least to me.  They denied my auto refi even after a recon and I was told that it’s due to my BK being less than 2 years old.  

 

How friendly is Ford?  We are looking at either a Ford Explorer or a GMC Acadia for my wife.  I have spoken with the finance director at a large Ford dealership in the area and she said Ford doesnt go off of the beacon score but an internal one.  Does anyone know?  I was told that even if I can’t get the 0% rate that the most on Fords program we are looking at is 3.9 but I’m not sure what that references.  

 

I emailed back and forth with a GMC dealer finance manager and they said the lowest rate is 700 or better with no credit blemishes.  So I’m not sure how BK friendly GM Financial is.  

Message 41 of 60
Regular Contributor

Re: Bankruptcy Friendly Auto Loans Guide


@TexasFamMan wrote:

PenFed is not BK friendly, at least to me.  They denied my auto refi even after a recon and I was told that it’s due to my BK being less than 2 years old.  

 

How friendly is Ford?  We are looking at either a Ford Explorer or a GMC Acadia for my wife.  I have spoken with the finance director at a large Ford dealership in the area and she said Ford doesnt go off of the beacon score but an internal one.  Does anyone know?  I was told that even if I can’t get the 0% rate that the most on Fords program we are looking at is 3.9 but I’m not sure what that references.  

 

I emailed back and forth with a GMC dealer finance manager and they said the lowest rate is 700 or better with no credit blemishes.  So I’m not sure how BK friendly GM Financial is.  


I have heard/read mixed things about PenFed so I can assume YMMV. As far as GM Financial, yes to qualify for their best rate would require min 685 but they def approve post BK's with far less credit scores... you def won't get the best score fresh out of a BK but you would def get approved. YMMV here as they want to see your credit profile pre and post BK in particular to auto loan history. You get dinged for surrending any cars during the BK, etc. The right F&I guy really can make or break the deal irrelevant to the bank. When I was 6 mos post BK, the first dealer I went to told me I needed to be 5+ years post BK to get financed through their captive lender then I went to the same brand but another dealership and was approved on the spot with tier 2 credit. 

BK7 08/2016 | DC 12/2016

Message 42 of 60
Valued Member

Re: Bankruptcy Friendly Auto Loans Guide

We spoke to a finance manager at a Ford place here where we live prior to discharge. He said once we have the discharge papers he’d be happy to help us. He helps people all the time, he said.

2 weeks ago we find a new explorer on their website. We went to ask about it, and they told us they special ordered that for someone and the deal didn’t work out so it was marked down to sell since it only has certain features, but didn’t have all the features that are standard in a Premiere. Once again, they said they’d be happy to help us, so we decided to let them try.

They ran all 3 CR’s just to walk back 10 minutes later and said because of the BK they can’t help us. They said in about 6 months or a year we’d be lucky if someone financed us for $20k, and sent us on our way. When I asked to see our scores they pulled, the sales guy laughed and said HE could see them, but they couldn’t show them to us, and we need to just wait for them to come in the mail.

That’s when we decided to try Cap One Auto Nav and GM Financial. The whole story of that experience went down is in the Auto Loans forum. Needless to say, we’re waiting until the end of the year or next spring to try again. We don’t want anymore inquiries.
BK 7 Filed: 2/13/18
Discharged: 5/17/18

CreditOne: $400
Message 43 of 60
Regular Contributor

Re: Bankruptcy Friendly Auto Loans Guide

So Ford Credit won’t approve us but I have a feeling it’s due to the deal. GM Financial approved us for a 9.9% rate on an Acadia but we were told it had to be a 2017 year model to get the rate, otherwise it’s 15-17%.  😔

Message 44 of 60
Regular Contributor

Re: Bankruptcy Friendly Auto Loans Guide

I take it back about PenFed not being BK friendly.  They approved us for a new auto loan at 7.3 but not quite for the amount we needed.  We will be doing a new auto refi within the month though.  They said our approval will work for that too.   Amazing how they change their minds within a 2 month span.  

Message 45 of 60
Regular Contributor

Re: Bankruptcy Friendly Auto Loans Guide

Awesome write up and I thank you for sharing this information.

 

I'm curious, has anyone burned the subprime lenders listed for a non-reaffirmed auto loan but was approved for a new auto loan by the same lendor post discharge? I ask this because dealerships like Carmax seem to blast out an applicants information to multiple lenders at one time.

 

 

Message 46 of 60
New Member

Re: Bankruptcy Friendly Auto Loans Guide

I wanted to share my experience about Toyota Financial post BK. I was in need of a vehicle and I’ve read that Toyota was very BK friendly. I went through the process, picked out a car and submitted an app. This is where it gets interesting. Finance guy comes and talks to me and informs me that Toyota Financial Services has new stringent guidelines in place for BK. They now will no-longer approve anyone fresh out of BK without a year of history built up with another lender for an auto loan. The finance director comes back and then tells me that Toyota will only buy this deal if I put 20% down and accept a 15.5% interest rate. At this point I laughed. So, basically Toyota won’t approve because I made some financial mistakes (which really was due to my divorce) and they counter with saying, 15.5% and 20% down. Sorry but that’s unacceptable. Especially since I had $73,000 worth of auto loans with them and excellent history with zero late payments. So beware of this institution also read there reviews. Customer service is horrible. This institution is not BK friendly and punishes customers on past history. I did not IIB them. Also, beware of dealers who shot-gun your credit to get a lender to buy. This hurts your chances of an approval odds. A 3 point HC hit all for nothing. Thanks Toyota!!
Message 47 of 60
Member

Re: Bankruptcy Friendly Auto Loans Guide

Just to share my experience with anybody out there that's looking. I was discharged on 7/19/18 and have been approved for financing through Volkswagen Credit on a 2018 Jetta. This is all thanks to my dealership talking extensively to VW. I had to explain to them why I filed bankruptcy and what I'm going to do to make sure it doesn't happen again etc. before they would approve the loan. I'm not sure yet on the exact terms. but it looks like the APR is going to be between 6-8%. I also got approved through Regions Bank on a 2018 Toyota iM but passed on the deal. Just keep pushing! You'll get a good loan!

Message 48 of 60
New Member

Re: Bankruptcy Friendly Auto Loans Guide


@zack7895 wrote:

Just to share my experience with anybody out there that's looking. I was discharged on 7/19/18 and have been approved for financing through Volkswagen Credit on a 2018 Jetta. This is all thanks to my dealership talking extensively to VW. I had to explain to them why I filed bankruptcy and what I'm going to do to make sure it doesn't happen again etc. before they would approve the loan. I'm not sure yet on the exact terms. but it looks like the APR is going to be between 6-8%. I also got approved through Regions Bank on a 2018 Toyota iM but passed on the deal. Just keep pushing! You'll get a good loan!


Congrats and glad to hear you were approved through VW Credit. First story I have heard of VW approving someone pretty recent out of BK. Did you previously have a VW loan? I have heard of VW approving people who burned them in a BK a few years post D/C with a nice rebuild. 

Message 49 of 60
Valued Contributor

Re: Bankruptcy Friendly Auto Loans Guide

Toyota must have just changed the rules then because we got our Toyota in March, about 2 months after discharge. We didn't put much down.

Message 50 of 60
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