I have a chapter 7 bankruptcy that is supposed to be discharged 5/15/12. I am looking to get a car afterwards. I talked to one dealer who said anyone fresh out of a BK would need a minimum of $3,000 down for a used car.
went to another dealer and he talked me into doing a credit application ect. He came back and said he had me approved with $500 down and he can do something called a spot delivey to where I take the car now and it will be final once I show the discharge paper work. Does this sound right? I don't know which dealer to believe.
Spot Delivery
Started by
jeff6898
, May 11 2012 12:26 PM
8 replies to this topic
#1
Posted 11 May 2012 - 12:26 PM
#2
Posted 11 May 2012 - 12:35 PM
Have you seen the terms in writing? I'm always hesitant until then. I've had many car salesman tell me they were 110% sure they could do a deal, only to find out they didn't have the authority. It could mean taking the car back when they can't sell the financing, and you owing for mileage and such.
#3
Posted 11 May 2012 - 01:28 PM
I have a chapter 7 bankruptcy that is supposed to be discharged 5/15/12. I am looking to get a car afterwards. I talked to one dealer who said anyone fresh out of a BK would need a minimum of $3,000 down for a used car.
went to another dealer and he talked me into doing a credit application ect. He came back and said he had me approved with $500 down and he can do something called a spot delivey to where I take the car now and it will be final once I show the discharge paper work. Does this sound right? I don't know which dealer to believe.
I'd wait until you are discharged. It's only a few days away.
#4
Posted 11 May 2012 - 02:03 PM
+1 avoid spot delivery at all costs if you can help it. There is no rush, is there?
#5
Posted 11 May 2012 - 04:34 PM
It's not very hard to buy a car right after discharge. Before it is almost impossible. So wait and don't sign anything until after discharge and you have seen all the exact terms.
#6
MarvBear
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Posted 11 May 2012 - 05:54 PM
It will cost you dearly if you don't wait till you have discharge papers in hand.
#7
Posted 12 May 2012 - 08:03 AM
+1 avoid spot delivery at all costs if you can help it. There is no rush, is there?
No rush on me, but the finance guy said that I was approved through Capital one and only approved on 1 car a 2006 Maxima for $12,900. He said if I didn't get that one this weekend he had another buyer coming to buy it and I would be out of luck.
quote It will cost you dearly if you don't wait till you have discharge papers in hand.
Marv do you mean cost me dearly with the courts or with the interest rate? I can't get the guy to tell me what the rate is all I know is the car is $12,900 plus tax tag tile and a extended 3/36000 warranty payments 369 60 months.
#8
MarvBear
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Posted 12 May 2012 - 08:16 AM
Loans made to people currently in a BK are extremely high risk category and are priced accordingly.
Loans made to people that are recently discharged are less risky for various reasons.
Capital One will not cash the contract without you being able to prove the BK Discharge. Their approvals only last from 30 days from submission date, and that includes transit time for paperwork and audit time for them to double check credit application accuracy. I would be surprised if the BK Discharge letter is provided within that time frame.
Loans made to people that are recently discharged are less risky for various reasons.
Capital One will not cash the contract without you being able to prove the BK Discharge. Their approvals only last from 30 days from submission date, and that includes transit time for paperwork and audit time for them to double check credit application accuracy. I would be surprised if the BK Discharge letter is provided within that time frame.
#9
Posted 12 May 2012 - 10:39 AM
+1 avoid spot delivery at all costs if you can help it. There is no rush, is there?
No rush on me, but the finance guy said that I was approved through Capital one and only approved on 1 car a 2006 Maxima for $12,900. He said if I didn't get that one this weekend he had another buyer coming to buy it and I would be out of luck.
quote It will cost you dearly if you don't wait till you have discharge papers in hand.
Marv do you mean cost me dearly with the courts or with the interest rate? I can't get the guy to tell me what the rate is all I know is the car is $12,900 plus tax tag tile and a extended 3/36000 warranty payments 369 60 months.
I'm going to call major BS on this. Typical high pressure sales imo...
- If he can get you approved on that Maxima, he can get you approved on many other vehicles around that value.
- If he had another buyer, the car would already be under contract and he wouldn't be wasting time with you on that vehicle.
- No rate means he doesn't have approval yet. This would be a spot delivery even after the discharge.
- The extended warranty may or may not be worth it to you, but I certainly hope he's not trying to bundle it as a condition of sale.
- That price seems little high for an '06 imo. Just because you have questionable credit doesn't mean you have to overpay, unless he's buying down the rate. If that were the case though, he'd have the rate information.
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