Reasonable rate post-BK for ca

Discussion in 'Credit Talk' started by steve, Oct 5, 2000.

  1. steve

    steve Well-Known Member

    I need a reasonable rate on a car loan. My BK was discharged, I'm working making good money, and feel that I should have to pay a punitive credit card interest on an auto loan. The days when a BK carried a stigma are pretty much over -- it's legal, after all. And there was a time when 20% interest was called "usery" -- only mobsters could get away with rates like that. Anybody know where to go for rates from, say, 5% to as high as 12% for an auto loan on a late model used car over 3-5 years? Internet connection is fine, as long as they're reputable. You can email if you want, to

  2. ShyGuy

    ShyGuy Well-Known Member

    RE: Reasonable rate post-BK fo

    How about a new car at 4.9? That's what I was about to get, and my Chapter 7 was discharged in April. I went to the local Ford dealer armed with my credit reports, explained that I had learned my lessons from the bankruptcy and was looking forward to do better managing my finances this time around. A few days later, I drove out with a 2000 Ford Taurus.

    Talk to the business manager or finance manager about a Red Carpet Lease. Don't let him or her pull your credit reports until after he or she agrees a lease is possible. If he or she is creative, any rebates can be applied to the down payment.

    Be flexible. Remember, the Focus was car of the year. (We would have been happy to lease a Focus if that's what the business manager said he could get Ford Credit to approve.)

    If you make your payments on-time, you can buy the car at the lease end or lease or buy another car. (The business manager told us that if we did our part -- i.e., made all of our payments on time -- he would personally make sure we got the car we wanted when our leased expired.) Plus, Ford reports to the CRAs, and it's a prime lender -- not a finance company.

    To make sure we have no problems, I'm setting up ebilling and an automatic payment schedule, so I don't have to worry about checks being lost in the mail.

    If you are rebuilding your credit after bankruptcy, Ford is the way to go.
  3. Cadillac408

    Cadillac408 Well-Known Member

    RE: Reasonable rate post-BK fo

    5-12%? Are you kidding? With a BK? Be lucky you even get a car. I think you would have to try a credit union and basically get LUCKY! I just bought a car 1 month ago and my interest rate is 19.81%!!!!! My credit was checkered (ie paid collections, paid charged off auto loan from Ford Motor credit that I was a co-signer on, etc.) but I took the deal anyway. Gotta start somewhere. My friend w/ a short credit history (Cap1, Aria, Macys') that began in Oct. 99 got a car finally. She originally bought a car and it was rolled back after 9 days cause they couldn't get her financed (submitted her to 30+ banks). Prior to them rolling the car back, she told me that while she was in finance, there was people walking outta there with 30% interest rates!!!!! Then 3 months later she went and got another car and was financed through Long Beach Acceptance for 20.xx%!!!!

    ShyGuy posted some comments on Ford Motor Credit. Well in my opinion they are the "Mobsters" that you talk about in your post. Ford Motor Credit is a bunch of rape artists. I personally would stay away from them and that Red Carpet Lease. The friend that I talked about above.....her mom did that Red Carpet Lease on a Contours and had problems also. So I guess the bottom line with Ford is read all of the fine print.
  4. Meg

    Meg Guest

    RE: Reasonable rate post-BK fo


    I don't want to sound crude, but a recently discharged bankruptcy will net nobody a below prime interest rate - 4.9%, as you quoted. Those rates, commonly advertised on TV and the radio - are reserved for the best customers who walk through Ford's doors. The have excellent credit, a good income, and an obvious willingness to pay. Bankruptcy suggests the opposite.
  5. Jim

    Jim Well-Known Member

    To: MP$40 & Meg. ShyGuy to

    This is my true story. I got my Chap 7 B.K. discharge in Feb. 1999. One week later, I walked into 2 Ford Dealers in Southern California. I explained that I was returning to work the following day after a one year abscence due to an injury and wanted to buy a truck. I drove my new $26,000 truck off the lot one hour after I arrived at the 2nd dealer. I got Auto club pricing (very good, 2.9% financing thru Ford Credit for $20,000.

    Here's why. I had $6,000 down, my discharge, $70,000 in retirement money, a $65,000 job, and my excuse for the B.K., ie. an injury.

    The only reason I didn't buy at the 1st dealer was that he did not have the exact truck I wanted. Right off the bat he offered me 5.9% interest.

    By the way, Ford makes good products these days.
  6. Jim

    Jim Well-Known Member

    One additional suggestion

    If want a new car. Get an Auto club card for roughly $45. They will give you referrals and GUARANTEED pricing when you go shopping. The referral will send you to the Fleet manager. He will help to handle the Finance Manager.

    Again, I was treated great by Ford.
  7. dogman

    dogman Well-Known Member

    Explorer w/ Firestone

    No sarcasm from me of course - Go to the Ford dealer, and, if you want to rebuild credit in a hurry, and drive and charge your way to a rollover, check out the 2001 Explorer.
  8. ShyGuy

    ShyGuy Well-Known Member

    RE: Reasonable rate for car --


    I can understand the skepticism by you and Meg, but it's true -- Ford Motor Credit gave me their best advertised terms (3-year lease at 4.9% and a $1,000 rebate) less than 6 months after my discharge. It helps that I had a little money to put down, but I didn't have that much (about $1,000 -- a signing bonus from a new job -- plus the dealer also applied the rebate to the down payment). I could have gotten a lower-priced car with less down, but the business manager said he wanted to try for the Taurus (our first choice) before having us look at anything else. (We would have been very happy with a new Focus.)

    I was fully expecting a sub-prime lender with 20% or higher interest. I was stunned when the dealer called to say I was approved for the Taurus, and I was even more stunned when I saw the lease terms and that it was with a prime lender. (The business manager wasn't lying to me when he told me I was going to be very happy.)

    So before anyone settles for a high APR used car, I'd recommend they at least take copies of their credit reports and discharge letter to the local Ford dealer's finance manager. The worse he or she can do is say no, especially if you don't let him or her make a credit inquiry until after agreeing to get you financed. The best time to go is when Ford is advertising big sales and rebates because rebates can be applied to your down payment.

    MP, I can also understand equating Ford with mobsters. Probably everyone who has been through tough times like we have has a creditor he or she feels that way about. For me, it's American Express. I'd rather deal with the Sopranos than those criminals. About the only thing Amex's hired goons didn't threaten me with is breaking both my legs (though they might have threatened to break an arm or a couple of toes). Seriously, they threatened me, called my supervisor at work, had me paged at work, told me that if I hired a lawyer they would made sure I never was able to get credit from anyone ever again and so on.

    Amex was the only creditor that acted this way. Others at least tried to help. Discover was the best to me, always professional and understanding. (That's why -- though some of my Discover debt was discharged -- I'd like to pay Discover back and reapply with them when my credit is better.) Even the subprimes or other collection agents didn't threaten me.

    So for all of you coveting that secured Optima, be warned. Don't ever get into trouble with Amex. It's an evil company -- and proud of it.
  9. justme

    justme Guest

    RE: Reasonable rate post-BK fo

    A couple things I read here I need to respond to:

    Although I have never filed bankruptcy, my dad did and he was tortured by that decision. He filed bankruptcy due to an injury that prevented him from working for nearly a year, plus with medical bills not coverd by insurance, things piled up. It was NOT because of an "unwillingness" to pay. Crap like that happens to people every day - people who for decades paid their bills promptly, but I guess a bankruptcy wipes that all away.

    Second, I have had a lot of problems with AmEx as well. I will NEVER do business with them again - no need to, I've got some great VISAs and MCs. I have read a lot of posts about how excited people are to have the blue card, or the green card, or the silver, gold, or pink AmEx card. Jeezus...if having an AmEx, no matter what color, elevates your sense of self worth that much, you need help.
  10. ShyGuy

    ShyGuy Well-Known Member

    RE: Reasonable rate post-BK fo


    I didn't plan to file bankruptcy, either. I was overextended, and then a medical problem led to a year unemployment. At the same time, my wife and I had our first child. It was tough. In fact, it wasn't until Amex sold my account to Equifax that I decided to just file Chapter 7. Even then, I planned on Chapter 13, but my attorney looked at my income and debt and said no way. I bet, though, that I feel a lot worse about declaring bankruptcy than Amex and its reps feel about breaking federal law while trying to collect.

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