My debts should all be discharged next week! Now I can start fresh. I have no debt but want to rebuild my credit now (immediately) and one of the things I want to do is to buy a new car but I'm not sure who to turn to for a loan. Conventional wisdom usually seems to be to find your own lender before walking into a dealership but I wonder if its any different just out of bankruptcy? Thanks!
2007-06-07 06:29:54 · 7 answers · asked by parker 2 in Cars & Transportation ➔ Car Makes ➔ Jeep
you JUST GOT OUT OF BANKRUPCY and you want to buy a NEW car?
are you stupid? Buy something used that you can actually afford rather than being an idiot and wasting a bunch of money on a new car which youll have an outrageous interest rate on. Re-establish your credit on an inexpensive used car, not a new car that will just put you back where you started.
2007-06-07 06:39:32 · answer #1 · answered by Kyle M 6 · 1⤊ 1⤋
you will get millions of offers for financing a new car. I would have suggesting buying the new car before BK, but you will get loads of offers, some good some, well, not so good. The lenders will love you because you can not charge the car off, they will also love you because they can charge you a huge interest rate and require you to put a great deal of money down.
Shop around and dont go with the first lender that offers you money. and also, after the BK (I take it is a CH 7) Never, Never, Never pay anything late again. That looks terrible in the eyes of a lender and can hurt your getting a loan for anything for a long long time in the future.
2007-06-07 06:42:04 · answer #2 · answered by Stephen 3 · 0⤊ 0⤋
Different lenders will have different policies for people with a bankrupcy history and/ or poor credit score. Call around to as many places as you can---banks and credit unions-- for a quote on rates and down payment requirements. That's basically all a dealer finance person does---they know which lenders are better at financing low score deals and may be able to cut a better rate for you then if you go into a deal as an unknown. It depends on how bad they want the sale. Try doing it at the end of the month when pressure is on to hit sales goals.
2007-06-07 06:39:10 · answer #3 · answered by paul h 7 · 1⤊ 0⤋
Actually, you'll want to buy a new car, unlike what the other guy said--interest rates are higher on used cars!
Do be prepared to face a high interest rate. However, if you can buy a car and pay everything on time, it will really help to boost your credit score. Do NOT pay late, or you could end up with a repo situation very quickly.
2007-06-07 13:55:52 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Typically the banks wont do anything for a year after a bankruptsy. I am in the same boat as you. filed feb 07 and tryed to trade my 99 ford in for a Jeep. I did get the Jeep but My co-signer became the prime and I became the co owner. I cant refinance the Jeep for a year to take over the primary owner.
2007-06-07 20:46:08 · answer #5 · answered by curious6710 4 · 0⤊ 0⤋
new car? why? heard of depreciation? why buy a brand new vehicle that is only going to be worth half of what you paid for it in just 2 or 3 years?
there are tons of sources out now for buying like brand new, very low milage,1 owner vehicles, the first owner ate the depreciation so you still get a like brand new vehicle but much much less.
shop around and internet search dealers used vehicle inventories, i have seen 06 model vehicles with like 7k miles go for 12 grand, and some of them sold new for 25 grand.
it's your money but a brand new vehicle just is not worth it!
2007-06-09 21:14:33 · answer #6 · answered by chris h 2 · 0⤊ 0⤋
Try a local credit union..
Theres a ton of good info on this site.
www.creditboards.com
2007-06-07 06:37:29 · answer #7 · answered by Bloggy 2 · 1⤊ 0⤋