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.
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.
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.