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Car financing/Bankruptcy issue

The last post in this topic was posted 943 days ago. 

 

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So I have a few questions regarding buying a new car with a bankruptcy.

 

Our bankruptcy was discharged 1 year ago. My scores have fluctuated between 600-close to 700. My first issue is will I be able to get decent financing? My mother would co-sign (she has excellent credit) but someone mentioned they would still go by my score - not sure if that is true. Since the bankruptcy I have already started to rebuild my credit with decent credit cards - $3K limit unsecured and even one with 0% so my credit is on the better side I would think (I know sometimes you need to get secured cards, etc.)

 

2nd issue is my current car. Currently I owe $7500 on my car - I feel a trade in would be negative equity. (2013 Huyndai Elantra). I am paying around $325 per month to keep the car. It was included in the bankruptcy but I did not reaffirm. Basically my understanding is I pay to keep but it does nothing for me as it is not reported. The BK attorney had mentioned to get a new car and just give that car back - at the time I was to nervous to do that.

 

Am I correct in thinking if it does not make sense to do a trade in (i.e. negative equity) I could potentially secure new car financing and just give my car back - that it cannot hurt me any more than the bankruptcy already does. (i.e. cannot show as a voluntary repo).

 

Thanks for the help. We are expecting our first child and want to get a new safer car with less miles and want to make sure I go about it correctly.

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your car is only 5-6 years old? You'll need to deal with the negative equity before or at the purchase of anything new. Do you have cash for difference?

 

you need more precision in understanding your FICO score... a 100 point range is not informative.

 

I highly recommend you DONT have a cosigner... at least if you love your mother. nobody should ever cosign. ever.

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A 2013 model is a safe vehicle, and babies don't care about how many miles a car has.

Even if babies did care about miles, it's your money not theirs.

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I know it was a big range just pointing out I see many after BK with under 500 scores.

 

I know my car is safe but dies have issues. It does nothing for me since it does not report and close to 100k in miles. I still have 4 years to keep paying. That is more the reason to look.

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you only have 4 years of payments if you want 4 years of payments; getting a new car doesn't help with that.

 

I don't think it is wrong to contemplate getting something new with the baby pending, but you need to get your finances in order; not just FICO (also remember auto FICOs might vary greatly from the versions you're looking at)

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Thanks. I guess I meant at the time took w 7 year loan so still have 3.5-4 yrs left to pay. If i get a new loan could possibly do 5 year.

 

Another good reason is we've quit smoking so want a fresh new car smoke free if that makes sense.

 

Finance wise I'm better off then when we filed, now make a good 25k more we mainly filed due to large medical bills. If payments are similar just seems like a no brainer I would think.

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If you did not reaffirm the vehicle in the BK, then your attorney is correct.

 

5 years is to long to finanance a vehicle, people needs and wants change, just as yours have. Three is best. Many manufacturers offer excellent transportation that is not very expensive, if you want a new vehicle. A one or two year old CPO vehicle will save you more money.

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Thanks. I guess I meant at the time took w 7 year loan so still have 3.5-4 yrs left to pay. If i get a new loan could possibly do 5 year.

 

Another good reason is we've quit smoking so want a fresh new car smoke free if that makes sense.

 

Finance wise I'm better off then when we filed, now make a good 25k more we mainly filed due to large medical bills. If payments are similar just seems like a no brainer I would think.

 

Just because you have that many scheduled payments left doesn't mean you have to take that long to pay off the remaining loan balance.

 

You are basing financial decisions on how things feel and how things smell, which makes zero economic sense.

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Thanks! I am definitely open to a CPO vehicle as well.

 

I guess my main point was I don't see it making sense to continue paying on my current car for the next 3 to 4 years at $350 a month when I can get something else as it won't hurt me to turn this car in.

 

As far as the way the car feels and smells no I am not being petty I'm looking at it more of safety. My car reeks of cigarette smell from years of smoking in it and knowing a child who died of Sids just doesn't make sense to put a newborn in this car

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As far as the way the car feels and smells no I am not being petty I'm looking at it more of safety. My car reeks of cigarette smell from years of smoking in it and knowing a child who died of Sids just doesn't make sense to put a newborn in this car

 

 

:lol: Smelly cars = dead children.

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Not sure if you are familiar with sids but having a child around smoke can increase the odds. Again not saying this is something to be terribly worried about but since the car is discharged....

 

I wouldn't have thought that way until a friends child died from sids and did some research.

 

Again not saying that would be the only reason to get rid of the car

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sorry but I gave kind advice about dealing with the financial aspects of negative equity. I even said I understand the rationale for wanting something different. it is as if the OP didn't even read posts #2 or #5. If would be helpful to learn real FICOs, especially auto-enhanced scores.

 

I really did spend 65 minutes on the treadmill... but I did pass on the extra slice. I apologize to the OP for the snarkiness.

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Hegemony I'm sorry if you misunderstood. I was replying to the post that said I was basing financial decisions on how things feel and smell.

 

I appreciated your advice and everyone here.

 

I only was replying to that post as the feel, smell is secondary. My main issue is paying for the car I technically don't have to if it makes sense to change.

 

I plan to get my real Fico scores in order as well as look into my Auto enhanced scores, look into CPO as suggested and weigh all options.

 

Sorry the post took a turn. I mainly wanted to make sure I can give my car back with no repercussions and if I'd be able to get financing or would need a cosigner.

 

Everyone gave me lots more to think of and I appreciate it all.

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I think the FICO website may offer them, but I have no idea if they are current with the versions we use. Best place is dealer, the pull your credit and have to give you a credit score disclosure notice. I do and make a customer sign in acknowledgement. That's the real one.

 

Sent from my SM-P580 using Tapatalk

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I think the FICO website may offer them, but I have no idea if they are current with the versions we use. Best place is dealer, the pull your credit and have to give you a credit score disclosure notice. I do and make a customer sign in acknowledgement. That's the real one.

 

Sent from my SM-P580 using Tapatalk

Hey Marv I just thought I would add when I did my lease almost 2 weeks ago. GM financial used TU FICO auto 09 for my approval and score matched exactly what I pulled from MyFico right after. Edited by bigpoppa09

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I think the FICO website may offer them, but I have no idea if they are current with the versions we use. Best place is dealer, the pull your credit and have to give you a credit score disclosure notice. I do and make a customer sign in acknowledgement. That's the real one.

 

Sent from my SM-P580 using Tapatalk

 

Yes, the FICO website does offer auto-enhanced credit scores, one from each of the 3 major CRAs. I don't know if they are exactly the versions of what the dealers pull these days, but I'd bet that since they are true FICO scores, are auto-enhanced, they would either match what the dealers would pull, or, lacking that, would be the most accurate indication of what a dealer would pull one could get outside of actually going to a dealership.

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Someone mentioned a lease. I always thought of this is a waste especially as I drove so much for my job. Now that I'm in a different position and miles are not an issue anymore I don't drive for work like I used to.... what is the thought on a lease given my situation?

 

I know I would be without any collateral afterwards but this would allow me time to give back my car and rebuild my credit in the meantime. Save some money and down the road either use the option to buy or buy something different.

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Someone mentioned a lease. I always thought of this is a waste especially as I drove so much for my job. Now that I'm in a different position and miles are not an issue anymore I don't drive for work like I used to.... what is the thought on a lease given my situation?

 

I know I would be without any collateral afterwards but this would allow me time to give back my car and rebuild my credit in the meantime. Save some money and down the road either use the option to buy or buy something different.

 

No. you will not qualify.

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Thanks. See I always thought it was easier to qualify for a lease...shows whatI know.

 

Will work on my fico scores to see what I'm dealing with.

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The last post in this topic was posted 943 days ago. 

 

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