Car Loan Offers

[latosha702]

I recently filed chapter 7 (04/18/13). I am starting to receive offers in the mail from Car Dealerships offering credit for a new car. I am still pending discharge. Why am i receiving offers so soon???

[QueenofReinvention]

A lot of credit companies (but most aggressively are car dealerships) obtain a list of bankruptcy filings, and then they mail out offers to those consumers, because they know a. they have poor credit (because of BK), and b. they (the consumer) can not file again for a set amount of years, and c. they can charge higher interest rates and make more $$ off them (although, I've seen some interest rates that weren't too bad for someone w/poor credit or a recent BK on their record), d. a vehicle can be repossessed, so they feel like they are in a win-win situation extending that offer.

[BlzrDuckFan16]

I am receiving these offers too, and I am also awaiting my discharge. Question for anyone who may know........Is it better to wait for my discharge before applying for a new loan (i.e would I get better rates). I received a letter from REM Division of Notification also letting me know I was prequalified for up to $28.900 due to my income. I dont know whether to wait or to try and seems rates I would be given now.

[grassfeeder]

i personally wouldn't mess with any of those offers.  They're usually all garbage for the desperate.

I obtained a car loan through Wells Fargo 3 months post dischage for a better rate than any of those places offer.

[BlzrDuckFan16]

Thank you for the input. They are telling me it would be around the same rate I have now since I already have a high rate but this would help build my score where my current car isn't doing that. And I planned on keeping my current car then trading it in after discharge. They are recommending I surrender it now since I can still include it in my bankruptcy. I'm assuming they say this due to my current car having negative equity.

[Anonymous]

If you have negative equity in the current vehicle, then by all means i would rid myself of the vehicle and take the new loan.  But that is just me, and I may be telling you the wrong thing to do if getting rid of the car somehow has an effect on lender decision whether to extend the new loan.  Anyone else have any thoughts on that?

[ezdriver]

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@Anonymous wrote:

If you have negative equity in the current vehicle, then by all means i would rid myself of the vehicle and take the new loan.  But that is just me, and I may be telling you the wrong thing to do if getting rid of the car somehow has an effect on lender decision whether to extend the new loan.  Anyone else have any thoughts on that?

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Did you realize that you replied to a thread from 2013?