Selling both cars after chapter 7

[1prettyorchid]

I have a 2010 Dodge Challenger that is paid off (and I absolutely love). I am torn being selling or keeping it. Its rarely driven and I have to get a waiver every year to pass inspection (due to check engine light and yes I've tried to fix it several times).

I also bought a 2017 Nissan Rogue which I do not like. I reaffirmed the loan but its not what I want. Carmax is willing to give me $16600 for it. And I would owe $700. IR is 13.58%. Is it worth keeping a little longer and refi, sell it, or continue to make pmt while hoping to get a better interest rate after dc. Btw.. I use this car to do doordash and ubereats. 

I'm 30 days out from my dc btw.

[Horseshoez]

@1prettyorchid, in your shoes I'd lose the Rogue and pay the $700 to be rid of it.

[1prettyorchid]

Carvana is now offering $1500 over what I owe. Just afraid of not being able to get a better rate after my dc. 

[Horseshoez]

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@1prettyorchid wrote:

Carvana is now offering $1500 over what I owe. Just afraid of not being able to get a better rate after my dc. 

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I guess the question is, do you need two cars?  Why not keep the Challenger and drive it?

My personal take is now is not the time to buy something new, both because of the market being pretty wild and woolly, and in your case because you'll probably only qualify for high interest rate loans for a while.  If you can let your discharge age for at least six months, and preferably twelve months, you should have less of an issue getting a loan at a reasonable rate.  In the meantime, I would suggest you open three credit cards, even if they're all secured, as well as an SSL and then head to the proverbial garden to let those credit lines age as well.  In a year you should be in good shape.

[1prettyorchid]

Thanks!

Since I'm making money doing doordash the challenger isn't a good car to drive. Its bigger and not as good on gas. But I will go ahead and sell it and cross my fingers. 

[Horseshoez]

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@1prettyorchid wrote:

Thanks!

Since I'm making money doing doordash the challenger isn't a good car to drive. Its bigger and not as good on gas. But I will go ahead and sell it and cross my fingers. 

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Are you in a position to pay cash for something like an early 2000s Corolla, Camry, Civic, or Accord?  If so, that might be a good option for you until the car market cools down and your discharge ages out a bit.

[1prettyorchid]

I have $4000 saved so far. I might just use the challenger until I find something else. I didnt want to use that money for a car but I might have to. 

[Horseshoez]

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@1prettyorchid wrote:

I have $4000 saved so far. I might just use the challenger until I find something else. I didnt want to use that money for a car but I might have to. 

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I was in kinda-sorta a similar situation during my Chapter 13; corrosion got the best of the car I entered my 5-year bankruptcy with and in my 4th year I needed to literally zero out my meager savings account to buy something new(er).  Like you I had other plans for that money, but it turned out to be a good investment as I'm now discharged and have no need for a new car, however, next year when I hit my 2-year post discharge mark, I may buy one anyway (I'm thinking a new 2022 Golf R).  The flip side of course is I've gotten real used to not having a car payment, so maybe not. 

[1prettyorchid]

Whew.. I don't want a payment but for the right car..maybe. 

[FireMedic1]

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@1prettyorchid wrote:

Carvana is now offering $1500 over what I owe. Just afraid of not being able to get a better rate after my dc. 

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@1prettyorchid I'd take that offer and bank the profit. 1 less car you'd have to pay insurance on also. More money for your savings. Once you get to where you can get a decent car to do the dash stuff and pay cash. No payments. More money from dash to throw in the savings. win, win, win! JMHO!