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Discharge and new car purchase.

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Anonymous
Not applicable

Discharge and new car purchase.

Hello everyone, I filed for bankruptcy couple months ago and received my discharge yesterday. We are in need of a car, what are the rules for purchasing after a BK? Do I have to wait any amount of time or can I go ahead and try to shop for car financing. How likely am I to be approved being this fresh out of a BK? Sorry for the questions, I don’t want to go into a dealer and start running credit checks when my chance of getting a new car are pretty nonexistent. Any help is Appreciated. Thank you!
Message 1 of 9
8 REPLIES 8
tooleman694
Valued Contributor

Re: Discharge and new car purchase.

Lots of people have had good success, I was able to get a new car right after discharge from Toyota. Check out the Cap 1 autoloans, I hear lots get approved right after BK.

 

What are your score looking like? Have you started the rebuilding process yet?

Message 2 of 9
Anonymous
Not applicable

Re: Discharge and new car purchase.

I have a small CC with capital one, but they denied us for a car loan. I have a 600 score, my husband is in the mid 400’s. I am a stay at home mom, he works full time.
Message 3 of 9
Anonymous
Not applicable

Re: Discharge and new car purchase.

Carvana may give you a prequal approval as soon as your discharge is reporting, and you can see what that would be without taking a hard pull.

Message 4 of 9
Anonymous
Not applicable

Re: Discharge and new car purchase.

I did look at Carvana and they wanted at least $5,000 down for something a lot older than we’re comfortable with, and more miles then I would like on a car. On top of this hefty down payment the least monthly payment they offered me was in the $500 range. Smiley Sad
Message 5 of 9
Anonymous
Not applicable

Re: Discharge and new car purchase.

If you were discharged yesterday, it may not be showing on your credit report yet.  Once it's reporting correctly, that should help with all of them.

Message 6 of 9
Anonymous
Not applicable

Re: Discharge and new car purchase.

How long does a discharge take to report on credit?
Message 7 of 9
tooleman694
Valued Contributor

Re: Discharge and new car purchase.

It depends, could be fast or not happen. I had to disbute the CRAs to get it corrected, took weeks.

Message 8 of 9
Anonymous
Not applicable

Re: Discharge and new car purchase.

I purchased a new 2018 Chevy Trax two days post BK discharge, and got 9.9% rate, approved by GM. (for a used one it was going to be a lot higher APR, I was VERY happy). My score was in the 550's at the time. So it can be done! I called right into the finance division of the dealership and talked, told them my issue. They worked and worked with me, and I couldn't be happier. Just wanted to let you know it IS possible. Best of luck to you.

 

There's also a great auto forum on here that may be helpful to you.

Message 9 of 9
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