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Chp 7 disch, would like a new car

Discussion in 'Credit Talk' started by teresa, Jul 21, 2004.

  1. Jul 21, 2004 #1
    teresa

    teresa Well-Known Member

    We have been discharged since April 04 and we just got approved for an Orchard Bank Card it is a start. Our next step is turning over the mongo truck payment (we did not reaffirm) and maybe trading in my car for a bigger vehicle, family of 5. All of the dealerships are having major rebates on the 04's and I would like to get one. The only thing is we still have both cars and I don't want it to look like we are buying a third car, can we just tell them that we are surrendering the truck when we get a new vehicle? Will they accept that? Can we just turn it in to any dealer or have them come here to pick it up? We have also been getting mail offers from dealers about helping to rebuild our credit. Any insight would be helpful! Who could I go to for financing and get approved? We have good tradelines with both vehicles right now, for a year. They are the only things we kept out of the BK. Our PG scores are mid-upper 500's. Also could I be on the credit app if I am not working? I could use a positive tradeline and my scores are a little better then DH. Thanks for any advice!
     
  3. Jul 21, 2004 #2
    Fosedeitch

    Fosedeitch Member

    I found it difficult to get a new car, since I had included three cars in my chapter 7 BK.

    I made the mistake of going to one of the "everyone is approved" car places...CNAC. I bought that car just before the BK, and kept it for 2 years. When I went to trade it in on a new 04 with great rebates, a nice down payment, and a GM family discount, I had a difficult time getting approval. The banks turned me away because I had included cars in my BK. To add insult to injury, the banks didn't consider CNAC (JD Byrider) a worthwhile TL, even with the 12K loan. I finally got approved through GMAC.

    So...the ONLY reason I got approved for the car, aside from the rebates, my down payment and such, was that I had a visa for 18 months with a perfect payment history.

    In the past, I also found that even with perfect credit (original score of 820) some lenders were apprehensive to lend to someone who already had multiple car loans...

    Your car loans will start being reported as late if you simply stop paying...then they will be shown as a repo...and finally a charge off. After a BK, that's not a good thing at all...See if you can trade one in on a new vehicle with great rebates, and a decent down payment...in the long run, you'll be much better off..if you can't...I'd recommend doing everything in your power to keep those two TL's current.

    There's my .02, from my experience....
     
  4. Jul 21, 2004 #3
    goldhummin

    goldhummin Well-Known Member

    Re: Chp 7 disch, would like a new c

    I'll ditto that! Be very, very, very careful with your credit right now. The dealer will ask to explain WHY you had the BK for one thing, so be prepared with your story. And my dealer said right up front "NEVER tell a dealer you BK due to a car. They will NEVER want to finance you then."

    Don't let ANY blemish appear on your credit now. I found out the hard way. Even a $15 monthly credit card payment that is lost in the mail will KILL your score and any chance of credit. You'll hear about ANY derog 10 fold post-BK. I know this from experience on a BK7. When there is a late payment AFTER your discharge, it's like you're a leper. :)
     
  5. Jul 21, 2004 #4
    chipper

    chipper Well-Known Member

    Re: Chp 7 disch, would like a new c

    Great advice. Us dealers, lol, can't submit an application for finance if we are told that a customer intends to BK or surrender a vehicle, or anything that goes against the 'spirit' of keeping with current payments.

    Since you kept the vehicles out of BK, which was very good, your AUTO score should be higher than the FICO you are privy to.

    Find a vehicle with a healthy rebate (usually domestics offer bigger factory incentives than imports), and prepare to have a decent down payment.

    WFS and Wells Fargo are lenders I would consider.
    If they know you are trading in a vehicle, it will not look like you are purchasing a third car.

    When filling out the credit app, have the person with the higher score on Line 1, as some lenders will use the higher of the 2 scores. You need not have an income to be a joint applicant.

    I would urge you to search alternative financing, especially a credit union, BEFORE you set foot in a dealership.

    Good Luck and ask for the Fleet Manager :)
     

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