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Just discharged and seeking an auto loan!

missgaonmymind
Contributor

Re: Just discharged and seeking an auto loan!

Well I filed my current car in the Bk and since the discharge they can pick it up any day now. I wasn't pleased with the interest rate either, but I've went to several dealerships only to hear around the same type of stuff. Hmm, I'm torned.
Current score post Ch 7 10/28/14 discharge : EQ: 635 TU 635 EX 651
Goal scores: 720

Capital One Platinum - $1550; Capital One QS - $1800; Barclay's Reward - $750; Discover IT - $500; Amazon Prime Store Card - $800; HSN - $1250; Kohl's - $700; NY & Co - $700;


VS - $650
, Wal-Mart - $1000 Home Depot - $1000
Message 11 of 32
StartingOver10
Moderator Emerita

Re: Just discharged and seeking an auto loan!


@missgaonmymind wrote:
Well I filed my current car in the Bk and since the discharge they can pick it up any day now. I wasn't pleased with the interest rate either, but I've went to several dealerships only to hear around the same type of stuff. Hmm, I'm torned.

I had the same issue in my Bk. I surrendered my vehicle. I purchased a "gently used" older small suv and drove it for 2 years. Then purchased a much newer (but not brand new) vehicle with payments. By the time the 2 years was up, my score was in the low 700s. Don't get yourself into a payment that you will regret.

 

Someone else on the auto loan board is posting about having serious regret on her new vehicle and she has only had it 3 months! This is the time for you to be extra careful about taking on debt. You are newly discharged and auto dealerships know how to entice you into a high payment for long terms. I would pass on this deal. Besides when you actually get to the dealer, I bet they find a way to require more money or higher payments or both.

Message 12 of 32
0REDSOX7
Valued Contributor

Re: Just discharged and seeking an auto loan!

I needed the vehicles in my case for work purposes - needed reliable vehicles with a warranty.

But, at such a high rate, you'd never see a dent in principal - with my loan in particular, with Santander at 18.99%, almost $360 of my $490 payment went to interest.

I paid more interest in seven months with Santander than I will in the six year loan (total loan interest) I refinanced with my CU at 2.69%.
BK Discharge 2/11/14

Currently in the garden.
Message 13 of 32
missgaonmymind
Contributor

Re: Just discharged and seeking an auto loan!

So 0RedSox7, you were able to re-fi??
Current score post Ch 7 10/28/14 discharge : EQ: 635 TU 635 EX 651
Goal scores: 720

Capital One Platinum - $1550; Capital One QS - $1800; Barclay's Reward - $750; Discover IT - $500; Amazon Prime Store Card - $800; HSN - $1250; Kohl's - $700; NY & Co - $700;


VS - $650
, Wal-Mart - $1000 Home Depot - $1000
Message 14 of 32
0REDSOX7
Valued Contributor

Re: Just discharged and seeking an auto loan!

I was - and I had a pretty amazing loan officer to do it, too.

I was about 4500 upside down seven months in to my original loan - so my LO gave me an auto loan for 16.7K and then I had to take out a personal loan for the balance of what was underwater. Again, that's because my rate was so high and so front loaded with interest.

So, I have two loans to replace one - but still saving over 110 a month in payments, so I just pay an extra 50 each month to the two loans to expedite paying them off.
BK Discharge 2/11/14

Currently in the garden.
Message 15 of 32
MarineVietVet
Moderator Emeritus

Re: Just discharged and seeking an auto loan!


@StartingOver10 wrote:

@missgaonmymind wrote:
I think I may just have to bite the bullet and use this to re-establish.

IMO it would be best to pass on this deal. 19% is a very high rate. You will be instantly upside down the minute you sign the paperwork.

 

One of the things filing and recovering from Bk has done for me is to teach me patience. The timing has to be good for you. Don't let a dealer guilt you into signing paperwork with a high rate that you have to suffer through month after month for years.

 

Can't you drive something for a few months to a year until you re-establish credit with a small credit card or two first (see the Bk thread by Soulmaster). Then get the big ticket item, your car, when you show you have your credit re-established.


Exactly. When we are on their turf they are experts on double talk and confusing numbers.

 

It took me many years to realize that a vehicle I'm looking at to buy is NOT the last one that will ever be made.  There will be others.

 

No reason to hurry. Take your time to make a decision.

Message 16 of 32
rebuilding05
New Member

Re: Just discharged and seeking an auto loan!

Hey I am in the same situation just got discharged on 9/30/2014. Car shopping if possible can you tell me were you got your car from. I have a a couple offers for a 14 sentra for $500 a month too much I think for a sentra
Message 17 of 32
rebuilding05
New Member

Re: Just discharged and seeking an auto loan!

can you tell me when you got your car from I am getting horrible deals

 

Message 18 of 32
Dross0904
Established Member

Re: Just discharged and seeking an auto loan!

I think part of getting a better deal is haggling even if you don't have the best credit at the moment.

 

If you can get an offer from anywhere use that offer to get other places to compete against each other to bring down the rate. Example: Local CU offers you 17% take to the car dealership and see if they can beat it and if they can't walk away. Or email the offer you received to multiple dealerships in your area to create a whole slew of offers and larger competition bucket.

 

Make them work for the sale and don't just shell out a high payment.

Discharged: 11/14/14 / CapitalOne QS: $300 / CapitalOne MC: $300

Starting Score: 544 EQ/454 TU/503 EX
Current Score: 517 EQ/492 TU/583 EX
Goal Score: 700


Take the myFICO Fitness Challenge
Message 19 of 32
missgaonmymind
Contributor

Re: Just discharged and seeking an auto loan!

I'm in Atlanta and I went to Kia of Union City. I did get them to drop down to 17.99%, which I still know is outrageous, but I have to start somewhere and work hard to bring my scores up, create some positive paying history, so that I can re-fi in 6-9 months down the line.
Current score post Ch 7 10/28/14 discharge : EQ: 635 TU 635 EX 651
Goal scores: 720

Capital One Platinum - $1550; Capital One QS - $1800; Barclay's Reward - $750; Discover IT - $500; Amazon Prime Store Card - $800; HSN - $1250; Kohl's - $700; NY & Co - $700;


VS - $650
, Wal-Mart - $1000 Home Depot - $1000
Message 20 of 32
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