ONLINE Bankruptcy Car Loan for non-dealer sale?
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I refuse to buy from a dealer because I’ve sold cars before and I know what they’re taught to do and I’ll end up kicking someone in the teeth. I have a bankruptcy for a 100,000 laser back surgery I had after a car accident. It’s prob not much more than a year old, if that.. and I want to get approved over the internet. I want a USED car from a private party seller. I really only need 5000-6000 but everywhere requires a min of 7500
Poopy.
Ideas?
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Brian H said:
Below are highlights of what you can expect when purchasing your first car after bankruptcy, based on my experience.
I think you’ll be surprised by a few of the findings…
* Financing a new car is easier than financing a used car.
* New cars have incentives and/or rebates which can lower or eliminate the cash down payment needed to buy a new car. You just use the rebate as the down payment. So, when looking for a new car, it’s often best to purchase the one with the highest rebate.
There’s absolutely no reason you need to put several thousand dollars down to lease or purchase a new car. The most cash you should need after bankruptcy is $500 to $1,000—and that’s if you do everything wrong! Anything more than that and you’re either at the wrong car dealer or you want the wrong car.
Do your research. My favorite place to gather this information is Edmunds.com. Not only can you get a heads up on what rates and rebates are offered from every manufacturer.
Car dealers can be as different as a Mac and a PC—just because one car dealer says, "No," doesn’t mean you can’t be approved for a car loan at a decent rate.
The majority of car lenders don’t use normal FICO credit scores to make a lending decision. They use auto-enhanced FICO scores called, FICO Auto Industry Option scores. These scores can be higher or lower than your regular FICO credit scores depending on how you manged you auto credit.
If you’ve filed a Chapter 7 bankruptcy it’s not a good idea to try and finance a car before you’re discharged—wait until you receive your discharge letter in the mail from the bankruptcy court…then try to finance a car.
If you’ve filed Chapter 13, you need trustee approval to finance another car. Make sure the deal makes sense before you approach your trustee. You need to have a good reason for your trustee to approve a new loan. For example, if your family situation has changed and you need a bigger vehicle for your growing family, or your car is a hoopty that just won’t run anymore.
Do your homework and interview as many car dealers as possible. When interviewing car dealers do not allow them to look at your personal credit reports until you’re ready. Remember, you want to avoid unnecessary credit inquiries. Credit inquiries can lower your FICO credit scores.
Some "subprime" lenders (lenders that charge you higher interest rates than mainstream lenders) could be your only option if you’re in a hurry. Normally, I would warn you to stay away from subprime lenders. But if you didn’t make your auto payments on time or had a car repossessed or included in your bankruptcy…subprime may be your only choice. However, not all subprime lenders are the same. Some will offer you a decent deal—others will try to take advantage of your situation. So make sure you interview lenders and compare what they offer you. The winner will stick out like a sore thumb.
So there you have it. Not a complete list, but a few nuggets of wisdom before you purchase your next car after bankruptcy.
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0November 23rd, 2009 at 12:16 am
