Thoughts on Purchasing a Car after BK

[salukidean]

I filed for bankruptcy a little over a year ago and had it discharged last July. I'm now at the point I have to look at a new vehicle and met with my credit union (America First CU) earlier this week. I have had a secured card with them for about 7 months ($1000 limit with no current balance) and also have Firestone and Target cards. My score according to PSECU earlier this week was 651. I applied for a used vehicle loan and was approved for up to $15,000 at 5.74% (they showed my credit score at 662). Only requirement is that I can only borrow up to 90% of the value of the car....however, this shouldn't be a problem as I have a mini-van to trade which should get 4-5k to apply as down payment. Does this sound like a good deal? It does to me....however, I want to make sure I get the best deal possible. Is it worth it to shop any further? Or should I just worry about finding the right car now?

[hrguy]

5.74 is good for less than a year out, we discharged the same month. I would start looking for the car - do you have previous good auto loans? Your auto enhanced score might be better, and depending on what you want, you may get a better deal with the manufacturer finance company. 3 months out of BK, Toyota Finance gave me 0% and my credit union gave me 10.74%, the dealer pulled the same bureau; their auto-enhanced score came in at 650 while the CU's came in at just 600.

 

Also gonna move to the Auto Finance Forum for more expert eyes.

Edited May 18, 2013 by hrguy

[stroked89coupe]

It's good. I got approved with Wells Fargo for 6.99 with a score of 590. Bk was discharged about a year ago.

[BRBiz]

It's good. I got approved with Wells Fargo for 6.99 with a score of 590. Bk was discharged about a year ago.

That's a pretty good rate for that score.. Auto enhanced score?

[Labyrinthine]

That is a pretty good deal in my eyes. I would see if the dealership can beat it, though. Can't hurt to try - right?

[minnie aubre]

That is a pretty good deal in my eyes. I would see if the dealership can beat it, though. Can't hurt to try - right?

 

This.

[salukidean]

Actually, if there's not much of a chance to beat that rate, I'd rather avoid the inquiries a dealership would force by putting it out to numerous lenders. I'm hoping the auto loan will improve my credit status and don't want to destroy that with a 10-20 point drop from inquiries.

[Labyrinthine]

Eh, the inquiries won't be that bad and have a fairly negligible impact on scores. Talk with F&I, they'll give you an idea if they think they can beat the rate.

[stroked89coupe]

 

It's good. I got approved with Wells Fargo for 6.99 with a score of 590. Bk was discharged about a year ago.

That's a pretty good rate for that score.. Auto enhanced score?

 

I'm assuming so as it came stright from the dealer. I have never even had an auto loan. I usually pay in cash. But I usually only buy 10-15K cars. This is was almost 30K

Edited May 19, 2013 by stroked89coupe

[gamecockcountry]

5.74% is a good rate that soon after BK and a very good rate for a used auto after BK since used rates seem to typically run higher.

 

 

Toyota does seem very BK friendly. I was approved through Toyota around a 1 year after BK for 0% and 2.9% depending on the loan term. I had no derogatory auto history which I believe helped. That was on a new vehicle.

Edited May 20, 2013 by gamecockcountry

[Hick]

That's not an entirely bad rate. Did you go through WF Dealer services via a dealership or on your own?